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.
One. Four principles of long-term stock selection
1. The total share capital is smaller
The size of the plate is key, and the first principle we use when choosing long-term stocks is small-cap stocks. There are still quite a few small-cap stocks in the market, and there are quite a few of them, and we have plenty of options.
2. The leader of the subdivided industry
The leading companies in the industry are good companies, but the first is that these companies have relatively large plates and limited ability to expand their share capital. At the same time, the stock price is often overdrawn several years in advance, and it is difficult to buy at a lower price. However, if it is a subdivided industry, it is different, and many of such leading companies have the basic conditions for equity expansion.
3. The industry has outstanding prospects
The safest way is to choose a sub-sector that is in the growth stage and will not fall behind in the foreseeable decade. In recent years, the market has continued to speculate strongly on cement and machinery stocks in the second-tier blue-chip sectors, benefiting from the country's urbanization construction expectations, making the growth of the industry more certain.
The 4.PE is lower
First of all, the total share capital or total market value of the current listed companies should be ranked in order, starting from a small age, and then the leading companies in the subdivided industries should be selected, and finally the selected subdivided industries should be screened.
Two. Tips for choosing leading stocks
1. Leading stocks must start from the price limit, can not be the limit of the stock can not be the leader, in fact, the price limit is the most accurate attack signal for both long and short sides, is the cradle of all dark horses and the birthplace of the leader.
2. The leading stocks must be low-priced, generally no more than 10 yuan. Only penny stocks can be sought after by shareholders and become the leader of the public.
3. The circulating market value of leading stocks should be moderate and suitable for large capital operation, and large-capitalization stocks and pocket stocks below 30 million cannot act as leaders.
4. Leading stocks must meet the daily KDJ, weekly KDJ, monthly KDJ and low-price golden forks at the same time.
5. Leading stocks are usually at the end of the market decline, and when the market panics, the price limit against the market bottoms out in advance or starts before the market, and withstands a round of decline in the market.
6. Divert the leading stocks from the hot spot switch, usually the market will switch to a new hot spot after a round of sharp decline.
7. Identify the leading stocks with the nature of the volume, the volume of individual stocks has two kinds of aggressive volume and margin replenishment, if the stock appears for more than three consecutive days, it is called aggressive volume, if the stock only has a single-day volume, it is called the replenishment volume, and the leading stocks must have the characteristics of aggressive volume.
8. Once the leading stocks can also make a comeback after full adjustment, we may wish to do our homework in advance and be more familiar with the famous leading stocks in history, so as to capture hot spots in time in the intraday.
9. Leading stocks are usually large-cap blue chip stocks, such leading stocks, in fact, in the process of strengthening a hot sector, often rise when the charge is in the lead, and the trend of resistance to fall can play a role in stabilizing the morale of the military.
When the market falls, investors in this kind of blue-chip stocks will not shake their confidence in holding stocks at all, and the main force is also making every effort to protect the market and prevent the stock price from falling; Once the general trend becomes stronger, the main force immediately struggles to pull up, and retail investors are also highly sought after.