Four tips for short-term stock selection and practical skills

Tip 1: Predict the daily trading volume.

There is a saying in the market that the relationship between quantity and price is like the relationship between water and a ship, where water rises and the ship rises. The only factor that can lead to a rise in stock prices is definitely the driving force of the main capital. So, with enough incremental funds entering the market, the stock price can rise. The larger the predicted trading volume on that day compared to the previous trading day, the greater the possibility of incremental funds entering the market.

Tip 2: Look at the relationship between stock prices and overall market volatility.

If the stock price is at a mid low level in terms of form, short-term technical indicators are also at a mid low level, and the stock price is far away from the resistance level, then the daily increase may be significant. If the stock fluctuates horizontally in the small fluctuations of the stock price regardless of the intraday rise or fall of the market, then once it rises, be careful to intervene decisively. If the market experiences a sharp decline and the stock remains in a sideways position with reduced trading volume, then once the market stabilizes, there is a greater possibility of an upward trend.

Tip 3: Check if there are consecutive large buy orders in the market.

If there are consecutive large buy orders in a stock during trading, the sell orders are relatively small, and the buy orders are often executed at a price higher than the "sell one" price, then the time for a rally has come. Moreover, the higher the commission price for buying is from the "sell one" price, the greater the chance of upward movement in general. It is worth noting that if the trading volume significantly increases and the stock price actually decreases, we should be highly vigilant about whether institutions are making large shipments. This can be judged based on whether there are large sell orders during the trading session. Also, it should be noted that releasing large orders at a high level can be a ripple even if it is urgent.

Tip 4: The big selling list is eaten up.

The trading volume of individual stocks is light, and there may also be large sell orders. If the daily trading volume is within 1 million shares, there will inevitably be some orders of 30000 to 40000 shares or more, which is completely normal. It is worth noting that once the price of these sell orders is close to the transaction price, they are actively bought up, which may indicate that the main players are foodies. Once the stock price successfully rises, these relatively low bought chips become the main force's own profit opportunities.