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1. How to choose stocks in the Laoshan market of the balanced market
1. Select substantive theme stocks
Some substantive theme stocks tend to be favored by new funds and repeatedly strengthened with the continuous amplification of trading volume, which reflects that the stock selection criteria of the main funds in the market have undergone major changes, and the value investment concept formed for a long time is being re-given a new understanding by the market, and the growth of listed companies is becoming an important reference basis for the main funds to choose to build positions.
2. Don't deviate from the main line of performance in stock selection
Performance growth expectations have become an important factor affecting the trend of the balanced market, in recent years, observing the strength of the balanced market, a large part of the varieties are with good interim or annual report performance expectations.
3. Don't blindly chase overvalued blue chips
Blue chips have been the focus of investment in the market in recent years, but the scope of blue chips is larger and includes more individual stocks. Investors must break down the sector, and in the blue-chip market in recent years, some blue-chip stocks have risen too fast, some have doubled in a short period of time, and some have had high price-to-earnings ratios.
4. Don't be greedy for marginalized stocks
The price system of the market is undergoing fundamental changes, the structural adjustment will be further deepened, and the polarization of stock prices will become increasingly prominent. Therefore, we must not be greedy for temporary cheapness, and we must avoid individual stocks that are being marginalized.
5. Balance the market according to different ways of operation to select stocks
1) Band operation
The most important form of arbitrage in the balanced market is the band operation of high selling and low buying, and the standard of high and low should refer to three technical indicators, namely the Bollinger Bands indicator, the central axis indicator and the position of the top and bottom of the box movement.
2) Long-term holding
Although the market shows obvious box movement rules, a small number of strong stocks still maintain their strong trend: the market rises, such stocks lead the rise, and the market falls, such stocks can also remain strong. Investors who hold such strong stocks should put aside the impact of the large-market box movement and hold them for a long time with an attitude of light index and heavy individual stocks.
3) Keep waiting
The box movement in the balanced market is not the only option for the stock market, and a breakout will be the final result. No matter which direction the market breaks through, it will produce a certain explosive force and new market hotspots. Prudent investors can adopt a wait-and-see approach, patiently waiting for the market to make a choice, and then proceed with stock selection operations based on the market conditions at that time.
2. How to choose stocks for bottoming and rebounding markets
1. Pick stocks
1) Severe overfall
2) The short-selling momentum of individual stocks is obviously insufficient
3) There is a trend of moderate volume in the process of bottoming
2. How to buy
1) Buy the dip when the stock price stands firm after the bottoming pattern appears
2) Actively buy before the close of the day when the underlying pattern appears
3. Precautions
1) When the stock price hits a new low or stabilizes in the early trading area, investors should open a 1/4 position during the sideways period when the stock price rises above the 21-day moving average, and as long as the stock price does not break the 21-day moving average support level, they can boldly hold the shares.
2) When the stock price relies on the 21-day moving average to move sideways and breaks through the 21-day moving average, the relative regional trading volume begins to expand, investors should make up for the position in time, and if the stock price attack on the 144-day moving average is blocked, investors should be out of the market in time.
3) After the stock price pulls back to the 144-day moving average, the trading volume must shrink extremely, reflecting that the main force is not out, otherwise it will not intervene. If the stock price rises above the 21-day moving average again, investors should replenish their chips in time as the stock price is about to enter a rally phase.
4. How to choose stocks in the rebound market
1. Over-falling stocks
Investors can pay attention to some serious over-falling stocks, such stocks have fallen deeply, but the fundamentals are better, and the actual downward momentum of the stock price is not strong, just because of the impact of the general weakness, individual stocks are like a compressed spring lurking in the low-price area. The rebound momentum accumulated by such stocks is very strong, and it can often break out into a strong upward market.
2. Stocks that are falling immeasurably
Some of the good performance, seriously undervalued stocks in the almost non-existent selling pressure is still immeasurable and sustained decline, the main reason is that there are market makers deliberately suppressed or dragged down by the extreme downturn in the market, once the general trend stabilizes and rebounds, the stocks that have fallen in the early stage are often elastic, so that investors who choose this type of stocks make a profit relatively easily.
3. Under-positioned secondary IPOs
Due to the influence of the market, some of the new shares that have not been listed for a long time have not been cared for by the main funds, and the stock price has not been fully speculated, resulting in the overall positioning of the listed new shares being low, leaving room for the development of the market outlook. In addition, the lack of upside hedging of the sub-IPO has also alleviated its upward resistance. Therefore, once the market rebounds, the new shares will become the varieties in which mainstream funds actively participate.
4. Active small-cap stocks
Investors must be clear that participating in the rally is a short-term hype rather than a long-term one. When selecting stocks, focus on the short-term speculative value of individual stocks rather than their investment value. Therefore, try not to choose blue-chip stocks with investment value but sluggish stock or low-priced large-cap index stocks, and pay attention to choosing speculative stocks with small circulation and active stock.
3. Shocks and plunges and adjustment of market stock selection
1. Grasp the opportunities in the low-level volatile market
The so-called low shock means that the stock price has fallen continuously for a long time, and if it is found that the volatility of a stock has increased, investors should pay full attention. Because it is very likely that the market maker has started to act and generate a wave of market, this provides investors with an excellent opportunity to open a position. In a low-level volatile market, investors should consider buy signals more and ignore short-term sell signals. Investors analyze and judge the information of listed companies and select some high-quality and high-potential stocks with good growth and broad development prospects for screening.
2. Grasp the opportunity of the median shock market
Median shock refers to when the stock price has generated a wave of upward movement, due to more short-term profits, it is inevitable to take profits. Therefore, it is easy to produce a volatile market, and this is the time to sell stocks that have risen more and buy stocks that are about to rise.
3. The operation method of the high-level shock market
1) Use candlestick indicators, such as daily candlesticks and hourly candlesticks.
2) When selling, calculate the highest position that the stock price may reach, and lower than a few price pending orders, when the order should be in the process of rising market, not waiting for the stock price to turn down when the order is reported.
3) When buying, you should pay attention to whether the pullback is in place, focusing on the 0.382, 0.618 callback levels and Gann's 50% pullback level.
4) Pay attention to the changes in short-term support lines, pressure lines and trading volumes.
5) The deviation rate is a very useful indicator in the volatile market, which can be used to sell too much on the top and buy too much on the bottom.
6) Set a stop loss point, once the operation is wrong, admit the loss.
4. The operation method of the volatile market on the way up
Sell the stock when the stock price runs to the upper pressure level of the ascending channel, and buy the stock when the stock price runs to the lower support level. At the same time, if there are two weak negative candles or strong positive candles in the volatile market on the way up, it should be a good time for investors to open positions.
5. The operation method of the volatile market on the way down
1) Short-term operation, fast in and fast out, the time should not exceed 3 trading days.
2) Intervene when the stock price is extremely over-falling and sell before the pressure.
3) Buy at the lower edge of the descending channel and sell when the moving average is under pressure.
4) Buy when the deviation is too large, and sell when the pressure of the moving average.
5) The requirements for profit space should not be too high, and the principle of profit should be adopted.
6) Choose small and medium-cap stocks with large volatility, and large-cap stocks are difficult to make price differences due to small volatility.
6. How to choose stocks in a plunge market
1) Pick stocks when they fall
Low price
It is easy to understand that the stock price is relatively low.
Low P/E ratio
Generally speaking, the P/E ratio indicates how many years the company needs to accumulate profits to reach the current market price level, so the smaller the P/E indicator value, the better, the smaller the payback period, the smaller the risk, and the higher the investment value.
Low price-to-book ratio
The price-to-book ratio is the ratio between the market price and the net assets per share, divided by the current market price per share by the company's net assets per share.
Low float market capitalization
The outstanding market value is the current market price per share multiplied by the number of shares outstanding in the company. Generally, the lower the circulating market capitalization of stocks, the smaller the funds used in speculation, the easier it is to pull up, so it is relatively active in a weak market.
2) Over-falling stocks
Whether there is a material negative for the over-falling stock, and if there is indeed a significant material negative impact on the future of the stock, investors must still avoid it.
Whether the over-falling stocks are long-term stocks, some long-term stocks have been very cheap after the long-term operation of the main force, even after multiple rounds of plunge, the main force is still in the profit stage, and investors are often risky to intervene rashly.
3) Down-resistant stocks
To invest in anti-decline stocks, we must have an understanding of the future trend, and only in the general trend of a stable and upward market, it is suitable to choose anti-decline stocks.
For the trend often reveals signs of artificiality in the anti-fall stocks should not be rash investment, most of these anti-decline stocks are the market makers settled deeply, the degree of control is high, the market trend is often relatively independent, arbitrariness is relatively large, contains a certain risk.
It is not advisable to choose stocks that resist losses at the beginning of a bear market, as such stocks often do not last until the end of the bear market. They may be more resistant to falling in a certain period of time in the stock market, but if the stock index falls again, they will adopt a cost-free shipping method due to the time cost of financing and the rupture of the capital chain.
It is not advisable to choose stocks that have never experienced a decline, as such stocks are often too invested due to the high cost of building a position by the market maker. Therefore, there will be no deep decline in the stock price.
3) Select stocks with continuous volume at the bottom in the near future
Because the market has been extremely sluggish after the crash, most of the individual stocks are extremely light, and these bottoms continue to increase, dare to stretch the yang, there must be confidence, theme, and reason, otherwise in a "hollow voice" of killing, the dealer does not have the courage to do long.
4) Pick small-cap stocks
In the process of rebounding, because not many people dare to confirm that it is a reversal, the courage to do long is insufficient, and the funds invested are limited, and they are afraid of the risk of returning to the downside.
5) Choose the old Zhuang quilt set shares
In the early stage of the rise is an excessive amount of piles, that is, there are large funds involved and this round of decline is extremely shrinking, that is, the main force is not large-scale shipments, this kind of stock because there are still a lot of chips in the hands of the bookmaker, so the rebound is easier.
7. Timing of investment in over-falling stocks
1) In the initial stage of the market, due to the complexity of the construction of the market bottom, and the stock market has just risen, there are many unexpected situations, so the market tends to be repeated.
2) When the stock index encounters important resistance areas, dense trading areas and thresholds in the early stage, it is easy to have a strong adjustment trend.
3) When the stock market rises too fast and rises too rapidly, it will suddenly increase the pressure of short-term profit-taking, resulting in a strong adjustment in the market.
8. Specific stock selection methods
1) Select stocks with a more solid and reliable bottom pattern, which requires a longer construction time for the bottom pattern, and the specific patterns are mainly more solid forms such as arc bottom, head and shoulders bottom and multiple bottom.
2) Select stocks with sufficient stock price adjustment in the early stage, and the average market cost of the stock price has been seriously over-fallen is basically concentrated near the current price, the stock price decline momentum has been fully released, and the stocks that have bottomed out and stabilized at an important support level can be focused on.
3) Choose stocks with a small increase in the current stock price and a low absolute stock price, but with a certain investment value and speculative value, and a certain upside and potential in the future.
4) Select stocks with obvious new capital involvement, pay special attention to stocks whose trading volume has been amplified but not excessively amplified, and are still in a state of moderate volume, indicating that mainstream funds are actively building positions in a planned and step-by-step manner.
5) Through a comprehensive comparison of the recent annual reports, interim reports and quarterly reports of listed companies, the listed companies with good performance are selected as the key focus objects. In the process of selecting potential stocks, it is necessary to combine the current trend of the mainstream hot spots in the market and select sectors and individual stocks that are similar to the hot spots in the market.
9. What stocks to choose at the end of the adjustment
1) Prepare for stock selection before the correction ends
Investors need to prepare early and timely determine which stocks can become leading stocks and leading sectors in the next round of market, so that they can quickly intervene and prepare for the arrival of a new round of market when the market starts again.
2) Determine the direction of stock selection at the end of the correction
When the market ends a strong adjustment and the overall trend of the market warms, investors need to pay attention to the recent trend that is stronger than the market according to the current market environment, and may become a market hotspot for leading stocks in the future, and choose the opportunity to intervene. Focus on selecting stocks with strong growth and sub-new stocks, especially those listed in the market adjustment stage and with low positioning.