Only a few people make money in the stock market. If you are still losing money while trading stocks, it is simply because you do not know how to select stocks and grasp buying and selling points, and you do not know how to conduct technical analysis. The stock market is like a casino. To survive in a market where the strong prey on the weak, it is impossible without a set of profit methods, skills, and self-protection discipline. So, how should individual investors choose stocks? What are the stock selection techniques? I believe everyone is very interested. Today, I will share with you some stock selection tips for friends who are not good at stock selection!

If you choose between the three elements of technical indicators, graphics, and trading volume on the K-line chart, the main force will definitely use trading volume to deceive people when they have no other choice. Therefore, analyzing trading volume and even turnover rate is of great help in determining the future development of a stock. It is important to distinguish whether the high turnover rate is due to the main force shipping or the main force preparing to lift.

Turnover rate stock selection method:

1. Choose stocks with high turnover rates.

The current stock market in our country is still dominated by speculation, and the true guarantee of individual stock price increases is the degree of entry of main capital. Stocks need to be fully traded, with an average turnover rate of over 10% during the market launch phase, in order for stock prices to continue to rise. Stocks with low turnover rates, due to the lack of funds as a guarantee, have become neglected objects in the market, making it difficult for their stock prices to rise rapidly.

2. Choose stocks held by numerous market makers, widely favored by the market, and with high turnover rates.

Stocks constructed by numerous machines generally represent a trend in the market. If investors coincide with the main force, it can often reduce system risk and increase capital returns. The stocks owned by individual market makers have strong controlling power and are easily subject to manipulation or suppression, resulting in significant systemic risks. If investors can timely catch up with stocks with high turnover rates, as long as the buying price is not in a situation where the individual stock rises more than 30%, there will generally be substantial profits, and the operation is easy and the actual risk is not significant.

3. Choose stocks with high turnover rates within a certain period of time rather than within two days.

Some stocks may have a high turnover rate within two days with the help of certain market news, but it is difficult to maintain in the long run, and there are often signs of borrowing news to sell. Buying such stocks carries greater risks. Therefore, in the operation, stocks with a high turnover rate and an increasing trend over a period of time should be selected. These stocks should have a higher increase rate than the overall market when launching a market trend

Using turnover rate to select stocks:

1. Choose stocks with high turnover rates

The current stock market in our country is still dominated by speculation, and the true guarantee of individual stock price increases is the degree of entry of main capital. Stocks need to be fully traded, with an average turnover rate of over 10% during the market launch phase, in order for stock prices to continue to rise. Stocks with low turnover rates, due to the lack of funds as a guarantee, have become neglected objects in the market, making it difficult for their stock prices to rise rapidly.

2. Choose stocks held by numerous main players, widely favored by the market, and with high turnover rates

Stocks constructed by numerous machines generally represent a trend in the market. If investors coincide with the main force, it can often reduce system risk and increase capital returns. Stocks owned by a single main force have strong controlling ability and are easily subject to uplift or suppression, resulting in significant systemic risk. If investors can timely catch up with stocks with high turnover rates, as long as the buying price is not in a situation where the individual stock rises more than 30%, there will generally be substantial profits, and the operation is easy and the actual risk is not significant.

3. Choose stocks with high turnover rates within a certain period of time instead of two days

Some stocks may have a high turnover rate within two days with the help of certain market news, but it is difficult to maintain in the long run, and there are often signs of borrowing news to sell. Buying such stocks carries greater risks. Therefore, in the operation, stocks with a high turnover rate and an increasing trend within a certain period of time should be selected, and the rise of these stocks when launching the market should be higher than that of the overall market.

Investors should pay attention to the key points of turnover rate in different markets:

1. Low to high turnover rate. Some institutions are buying and accumulating chips, and the chips are being concentrated from scattered retail investors to institutional large holders. The stock is bound to have a wave of rise in the future.

2. High turnover rate at high positions. Some institutions are increasing their trading volume to attract retail investors to follow suit, distributing high priced chips at high levels. The chips are flowing from the warehouse held by the market makers to the small pockets of retail investors, and the stock is bound to decline in the future.

3. Low and high turnover rate in the air. Intentional individuals in the market are taking advantage of the bearish trend and devouring the cheap chips that retail investors have cut off due to panic at the mid to low stock prices. Daring to accumulate goods during negative events also indicates that such negative events are temporary and there will be exciting events in the future.

4. High turnover rate at high positions. The institutions participating in the stock are using the good news to distribute high priced chips at high prices. As the banquet is about to end, the well fed and proactive investors are running away frantically using the good news, while the belated retail investors are rushing to pay and settle the accounts.

5. How to confirm that the banker has started building a position? The reference value of the weekly candlestick chart is the highest. The moving average system of the weekly candlestick chart changes from bearish to bullish, indicating the intervention of the market maker. Therefore, the golden cross of the weekly MACD indicator can be considered as a sign that the market maker has started to build positions, which is the starting point for calculating turnover rate.