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Three Points On The Selection Of Midline Stock

2011/3/2 16:15:00 41

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Midline Stock Selection

First, recognize the value.

Your operation concept, regardless of

Investment

Or speculation, first of all, we must follow the law of value.

This is the most fundamental one, because no matter how the stock price changes, it will eventually revolve around it.

Its own value fluctuates.

If you break the law of value, you will be severely punished sooner or later.

Of course, there are many criteria for measuring the value of stocks, but the most common ones are the two indicators, price earnings ratio and market rate.

Generally speaking, the price earnings ratio of stocks fluctuates between 20-40 times, which is normal; the fluctuation of stock market's net rate is 2-4 times normal.

In addition, it is not over estimated or underestimated.

To analyze the value of stocks, we should also consider the growth and periodicity of stocks, otherwise it is easy to generalize and misjudge.

For example, in October 2007, after the repeated speculation of non-ferrous metal plates, investors found that the higher the price earnings ratio of these stocks, the lower the price earnings ratio, but tens or even hundreds of yuan.

Price of stock

As a result, the market rate is far from the normal fluctuation range, and the cyclical nature of these stock trades is too strong. Once there is a decline in performance, it is difficult to support its high share price, so over 90% of the collapse is inevitable.

Two, grasp the trend.

The trend of stock fluctuation has a medium and long term trend and a short term trend. Taking into account the affordability of investors, it is suggested that investors should try to grasp the medium term trend of stock fluctuations and not stick to small and short fluctuations.

What is the 1 minute, 5 minute K-line map, generally do not consider it, that is what the so-called "stock speculating master" must do.

Of course, from the medium term fluctuation of stocks, the fluctuation of stock prices is nothing more than a rise, a concussion and a fall.

The middle and short lines try to operate in the trend of stock rising, because the probability of profit is far greater than in the fall or shock.

In the rising trend of stock prices, the main wave speed is the fastest and the increase is also very amazing, which is infatuated with investors.

Using wave theory to analyze the stock market before entering the main wave, there are clues to collect chips (the so-called 1 wave).

The performance is small volume, small Yang rise; after the main chips are collected, they will further suppress (the so-called 2 wave) and clean up floating funds.

Then began to pull up (the so-called 3 wave) sharply, and quickly separated from the main cost area.

Because the money making effect is very obvious, this stock can easily lead to the popularity of market investors, making the stock's trend more and more fierce.

Three, familiar with the environment.

Investors must make a comprehensive analysis of the market environment when deciding on stock operations.

Is the market pessimistic or optimistic, is it in a bull market or a short market?

Is it the beginning of the rise or the end of the rise? Is it the beginning of the fall or the end of the fall?

Only when you understand the general trend can you formulate detailed stock operation plans. Otherwise, if you have tens of millions of skills, you will be knocked down.

For example, in October 2007, the Shanghai composite index at 6000 points, if you blindly look for dark horse, bull stock, full warehouse do more; in October 2008, you also savagely cut meat, empty the stock market, empty warehouse waiting to copy the bottom.

Obviously, it is necessary to commit historical mistakes.

This error is unforgivable compared with other mistakes.