Generally speaking, there are various negative reasons for the underperformance and stagflation of stock prices in both rising and falling stocks. Buying these stocks may not make you a big profit, but it is also difficult to lose money.

What are the measurement standards?

It is easy to associate buying stocks that have oversold with buying stocks at the bottom, but there is a clear difference. Trading in oversold stocks is on the left side, while trading in rebound stocks is on the right side. Compensatory stocks have evolved from oversold stocks, and trading strategies are safer. Its several criteria are: 1. Based on the increase in the corresponding index of a stock and the position of the moving average of the corresponding index - if the market rebounds above the 60 day moving average in recent days, reversing the continuous decline and breaking of the moving average, we can pay attention to some stocks that are still below the 60 day moving average as our targets. The further away a stock is from its 60 day moving average, the safer it is and the greater the likelihood of a significant rebound; 2. The circulation tray should be small; 3. The K-line shape should be good; 4. The trading volume of the target stock should be active during the trading session; 5. Hot topics that are in line with recent market trends; 6. The price of individual stocks should be lower than the market average price; 7. As long as it is not a junk stock facing delisting, performance factors do not need to be considered in the short term.

How to control risks?

The biggest risk of making up stocks is that when the market is too weak, the selected target stock may become the vanguard of the decline again before it can rebound, although the possibility of this happening is relatively small. But to control this risk, it is necessary to pay daily attention to the heat of the uptrend chart, changes in the trading volume of the market, and whether the moving average position of the market has changed.