Stocks are a high-risk, high-yield investment method, and their prices are affected by many factors. So why do stocks keep falling? What should investors pay attention to? Changsheng Securities has also prepared relevant content for everyone’s reference.
Why do stocks keep falling?
1. Affected by fundamentals. When a stock's fundamental factors change significantly, it will lead to the market's re-evaluation of the company's value, causing stock price fluctuations. For example, when a company's performance continues to decline or its industry encounters a crisis, it may cause the stock price to continue to fall.
2. There are problems with the technical aspects of the stock. Stock technical indicators reflect the short-term supply and demand relationship and psychological changes in the market, and are the main factors affecting short-term changes in stock prices. For example, when the stock price falls below an important support level, it may form a downward trend.
What should investors pay attention to?
1. Don’t trade based on emotion. Faced with the continued decline in stock prices, investors should not blindly follow the trend or be swayed by market sentiment, but should formulate strategies based on their own investment goals, risk tolerance, and capital status, such as adopting a gradual position reduction strategy. Sex is all sold out.
2. Adjust positions and diversify investments. Investors should timely adjust their positions and structures based on market changes and their own judgment to prevent risks from being too concentrated. Generally speaking, when the market is in a downward trend, you should reduce or short positions appropriately, maintain sufficient liquidity, and wait for the market to show improvement. When the market is in a rebound trend, positions should be appropriately increased to seize market opportunities. In addition, investors should choose high-quality companies or industries for investment based on the performance of different sectors and individual stocks, and avoid investing in companies or industries with poor performance, overvalued, and excessive risks.
The above is the knowledge about "Why do stocks keep falling? What should investors pay attention to?"