Lightyear FX: Financial Analyst, Financial Media Person, Amateur Research Trading Technical Analysis. Stay on top of the latest cutting-edge technology information and share the most in-depth industry insights with you. The following content is from Just2Trade.
1. How to choose stocks in a strong market
1. The performance has improved significantly
Compared with the high-performing stocks that have always performed well, the original performance is poor, and after the process of restructuring or developing new varieties and changing the direction of operation, the listed companies with earth-shaking changes in performance have more room for growth.
2. The starting price is relatively low
Stocks with doubling potential tend to have a low starting price, generally in the range of 3~8 yuan. The low starting price is usually caused by two reasons: one is that individual stocks are not popular with most investors due to reasons such as large plates, lack of hype themes, and inactive stocks, and the market response is cold, resulting in low stock prices; Low stock prices are one of the common characteristics of almost all "dark horses" that have doubled.
3. There are abundant potential subject matter
Most of the stocks whose stock prices are easy to double have substantial potential themes as driving force, such as asset restructuring, foreign participation in holdings, mergers and acquisitions, and high-proportion transfers. However, China's stock market has always had the habit of seeing good shipments, so if investors find that individual stocks have risen hugely, and the original potential themes have gradually become clear and transformed into realistic themes, they need to pay attention to the main force to take advantage of good shipments.
4. There are mainstream funds in the market invested in it
Those "dark horses" who ignore the ups and downs of the market and always maintain the trend of the strong are generally because there are mainstream funds with strong strength in the market, and the mainstream funds belong to Xinzhuang that has not been in the market for a long time. From the stock price trend, it can be seen that these stocks have experienced a period of incubation before the launch, during which the trading volume has obvious signs of increase, and the distribution of chips has gradually become concentrated. When mainstream funds are fully established, once the time is ripe, the stock price can often rise from the ground and rise amazingly.
5. Choose individual stocks with mainstream capital intervention
Investors should pay attention to the selection of stocks with mainstream funds when selecting stocks, these funds must belong to the new inflow of funds, for some long-term old funds into individual stocks to resolutely avoid, investors need to be identified by the trading volume. In a round of the market, stocks with new money often rise faster than the broader market, resulting in huge profits for investors who buy such stocks.
6. Follow the hot spots in the market when picking stocks
If you want to achieve excellent results in the rising market, you must seize the "leader" and its associated hot stocks, and only by choosing such stocks is the basis for achieving returns beyond the broader market. However, in actual operation, it is necessary to pay attention to risk control, do not blindly chase high, and adopt the trend operation mode. And be vigilant at all times and be cautious about holding shares. Once an operation error is found or there is a major change in the fundamentals of individual stocks, it should be withdrawn in time and re-selected.
7. Investors who have hedged stocks should pay more attention to careful stock selection
When the market has just turned from weak to strong, many investors are in a state of lock-in. The common misconception of these investors is that stock selection is only a skill that investors with short positions need to master, and those with heavy positions can not choose stocks.
8. Pick stocks in a soaring market
1) A leading stock that is the leader in the market.
2) The trading volume is significantly enlarged, and the market funds focus on the pursuit of individual stocks.
3) The top gainers, especially the stocks in the first list.
4) Stocks that can take the lead in rising after the opening and quickly close the upper limit, or even strong stocks that have a second daily limit in a row.
9. Pick stocks in the main rising wave
1) The rise of hot stocks is often unexpected and reasonable.
2) The rise and fall of market hotspots has never gotten rid of the main line of blue chips.
3) Stocks that are in line with the main line of the market tend to maintain the strong and strong, while stocks that do not meet the main line of the market often show the "Matthew effect" in which the weak get weaker.
2. How to choose stocks in a bull market
1. Select the leading stocks
Leading stocks are the soul and core of the stock market, and the leading stocks in the bull market can play a role in leading the market to charge forward, and often do not look back in the entire bull market. Once the leading stocks are weak, perhaps the bull market is coming to an end.
2. Choose strong stocks
1) The financial strength of the intervening institution is strong.
2) There is a significant change in the company's fundamentals or the situation is good.
3) The public has a very high opinion of the stock.
4) The stock has a long period of momentum accumulation before pulling up.
3. The increase should be high
First, the absolute increase should be high. If the stock price starts more than 50% from the bottom, it should be logical to enter the main rising wave. The second is to achieve a breakthrough in the stage. Stocks that can successfully break through the previous top should be bullish. If you can't break through or patrol at the top of the previous one, there is a possibility of returning without success. The third is a new high. The record high of the stock price indicates that the value has been rediscovered, the price has been repositioned, and it should be bullish on the higher line in the case of normal transactions.
4. The starting price is relatively low
Stocks with doubling potential, the starting price is often relatively low, generally in the range of 3~8 yuan, the starting price is lower usually caused by two reasons: one is that individual stocks are not popular with most investors due to the large plate, lack of speculation, inactive stocks, etc., and the market reaction is cold, resulting in low stock prices; The low share price is one of the common characteristics of almost all dark horses that have doubled.
5. The degree of involvement of the main capital should be high
We give up when the main force is shallow, we watch when the main force is weak, and we who are extraordinary in the main force and settle in in a big way, which is the object of our heavy participation.
6. There are mainstream funds in the market
From the stock price trend, it can be seen that these stocks have experienced a period of incubation before the launch, during which the trading volume has obvious signs of increase, and the distribution of chips has gradually become concentrated. When mainstream funds are fully established, once the time is ripe, the stock price can often rise from the ground and rise amazingly.
7. Catch the head sheep in the hot plate
The leader is generally the leader in the hot plate, not only has a good image and a large circulation, but also has the deepest degree of main involvement. Therefore, at the beginning of the market, the first to rise must be the leader. The other stocks in the hot sector are only "sheep's heads". Since the leader plays an important role in the market, the main force often does not care about the cost in the process of cultivating the leader, and the stock price can be pulled to an astonishing height.
8. Select individual stocks that are running in an ascending channel
1) On the chart, connect the lows of each adjustment of individual stocks to draw the lower band of the uptrend, and then connect the highs of each rebound of individual stocks to draw the upper band of the uptrend of the stock.
2)) When the stock price correction touches the middle band of the Bollinger Bands and gets support, and the price is close to the lower band of the uptrend, you can actively choose the time to buy, when the stock price rebounds near the upper band of the uptrend, if the stock price touches the upper band of the Bollinger Bands at the same time and encounters resistance, the investor can sell.
9. Keep an eye on volume
When selecting stocks, we should pay attention to the changes in trading volume, and pay attention to individual stocks with moderate amplification of trading volume at the bottom. In the early stage of the rise, the trading volume should be gradually amplified along with the rise of the stock price, and when it rises to the intensive trading area in the early stage, it should be able to rush through smoothly with the cooperation of the larger trading volume. This kind of individual stocks with a large amount of cooperation is the best choice in the upward market.
10. Pay attention to the moving average system
Select stocks that have been aligned with the moving average system. The 5th, 10th, 20th, 30th and other moving averages of individual stocks are running upwards, and if the moving average system is still in a declining individual stock, it will not be considered.
11. Pay attention to the general trend
Investing in individual stocks should pay attention to the general trend. If the market runs smoothly and the trading volume remains balanced, it means that the shareholders' mentality is stable, the upward trend of the stock market can still continue, and investors can actively choose stocks to participate in the upward market.