Several Bases And Ways Of Selecting Stocks

Short-term

Choose the right one.

There are many ways of stock selection, such as performance selection, stock selection, stock selection, periodic stock selection, index selection and so on. These stock picking methods have their own advantages and disadvantages. The performance stock selection focuses on the growth of listed companies, and the listed companies that grow well will bring you huge profits. But this requires a lot of data and accurate analysis and judgement. This is what economic experts can do. It is difficult for ordinary investors to do that. Moreover, even if the listed companies are growing well, their stock prices will fluctuate in the two tier market, and sometimes the volatility will be very large.

Strategic stocks are listed companies benefiting from the direction of the national economic policy. The stocks of these companies will rise well for a period of time. However, the fluctuation of stock prices is inevitable. Sometimes, the policies are somewhat lagging behind the stock price operation.

News stock selection is based on a certain change of the listed company itself. This change will greatly enhance the growth of the company's performance, and its stock price is expected to increase substantially.

In fact, this kind of news has great uncertainty or hysteresis. Buying this stock will become a hang up group for a period of time.

Cyclical stock selection refers to the choice of products based on the cyclical changes of the products of listed companies or the upper and lower companies. If they are familiar with the changes of listed companies and the market, this is certainly a good way of stock selection.

However, the ordinary investors can really understand the listed companies are few, and the market is unpredictable, when the wrong market entry, the opportunity brings a period of loss.

Index selection is based on a variety of technical indicators to select indicators in the ascendant trend of stocks (whether the listed companies are good or bad performance is not very important, of course, the best choice is to choose blue chip stocks), but the trend of indicators is a reflection of the trend of stock price movements, that is to say, there are indicators after the first trend, so the subsequent stock price movements may also go to the opposite side, and it will also make people feel embarrassed.

In this sense, there is no foolproof stock selection method.

In truth.

In the capital market, it is impossible to ensure profitability. The only thing we can do is to reduce losses.

Therefore, after buying stocks, the first thing to consider is not to earn much, but to sell when considering losses.

Although the probability of various stock picking methods is almost the same, it is necessary to choose one or more kinds (preferably one), because there must be a basis for buying and selling stocks.

Then, which stock selection method should be used as the basis?

Comparison of various stock selection methods is not difficult to find, index selection is relatively simple, this is one of the reasons why technical indicators have always been favored, of course, it is important to set up stop loss.

If we choose stock index, we all know that there are many technical indicators and which one should be used. The same indicators have their advantages and disadvantages, and the best indicators should be the most familiar indicators.

Investors must be proficient in one indicator and strictly follow the index.

Next, take waterfall line as an example to illustrate the idea of stock selection.

Waterfall line (PBX) is a trend indicator. Because its shape and waterfall are very similar in operation, it is called the waterfall line.

When the waterfall line has an upward trend, it can intervene.

The long medium and short term waterfall lines are called the empty head arrangement in order from the upper to down, and the long and medium short waterfall lines are called the multi head arrangement in order from the lower to the upper.

In the case of short alignment, when the short waterfall line is passivated and upward trend, it shows that it is entering the rebound trend, especially when the short waterfall line goes through the middle long line waterfall line.

When the waterfall line is bonded, it shows a trend of reversal, especially when the stock price crosses all the waterfall lines and stands firm.

In the case of multiple arrangement, when the line is dispersed upward, it indicates that the main wave is entering.

When the short line is downward but not intersected with the mid long line, it indicates that the technical adjustment is mainly done.

When the short line is downward and intersects with the middle long line, it shows that there is a deeper adjustment.

But the waterfall line does not completely enter the empty arrangement and return to the multi head arrangement, indicating that it is the continuation stage of the main wave rising.

According to PBX, there are three opportunities to intervene:

1, short waterfall line passivation and upward trend into rebound, attention should be paid to stop and stop.

2, when the stock price crosses all the waterfall lines and goes into the reverse direction, we must pay attention to stopping and stopping.

3, when the waterfall lines scatter upward into the main wave, pay attention to stopping and stopping.