Investment Strategies for Special Times

by rkcms on 2008-05-18 09:11:58

This Monday, a strong earthquake occurred in the Sichuan Wenchuan area. While the whole nation united to rescue people and fight against the disaster, the Shanghai and Shenzhen stock markets performed very rationally, with steady fluctuations in the overall market for the week. This shows that during times when the country faces difficulties, small and medium-sized investors are aware, and major institutional players are politically conscious. At this stage, professional traders believe the following operational key points should be noted: 1) Pay attention to the investment rhythm of mainstream institutions: The current market's key point is maintaining market stability; this is a political requirement during a crisis. Therefore, the small-range trading situation is what the regulators and the main institutional players would like to see. In such a case, our operations must also be politically conscious. When the market experiences a certain degree of decline, buy to help stabilize the market; When the market sees a significant rise without corresponding volume, temporarily sell your stocks and reserve the right to participate in the next round of market stabilization. Selling high and buying low, under the current environment, benefits both the country and oneself.