Practical Stock Selection Techniques, Strategies, and Practical Skills

The practical operation of investors in buying and selling stocks, like other industrial investments, always has a gap between thinking and doing, and even the opposite. In practical operation, it is common to encounter situations where one knows they should do it, but does not do it properly. This is mainly due to the randomness of the operation and the hope of good luck, which is the obstacle to winning in stock investment. There are also two important measures to overcome this obstacle: one is to make a thorough operational plan at each stage, and the other is to maintain a calm and rational analytical ability. The person who can achieve the first point can become a deliverer and analyst, and the person who can achieve both points can become a big winner. The above two points are important criteria for distinguishing qualified professional investors from amateur investors, but in order to achieve long-term returns in the market, more efforts must be made in this regard. However, due to the weakness of human nature, most investors often dream of making profits by randomly brainstorming or relying on others to achieve a few limit up boards, which are basically delusions and daydreams.

At present, most investors do not consider risk and long-term plans when taking action. They have a strong sense of short-term profit seeking. Even if you tell them that there is a trap ahead, if the main force puts a piece of silver behind the trap, most of them will immediately have no protective measures and will try to grab it with their bare hands like moths. If they put a piece of gold, they will not risk their lives to grab it. Professional investors, on the other hand, will also go to pick it up, but they will avoid traps, use tools, or wait until everyone falls into the trap and fills it up before walking over.

When formulating a plan, it is necessary to first clarify the purpose, which includes distinguishing between long-term and short-term goals, speculation and investment, and themes and growth potential. A plan is a means of implementing a goal, and the two must cooperate. If there is a contradiction between the two, the result will be biased. In practical situations, this phenomenon often occurs. For example, an investor uses technical analysis to predict that a stock may rise sharply, but due to its poor performance, they do not buy it. As a result, the stock really rises sharply and they regret it deeply. This is a typical case of using investment methods to pursue speculative purposes. Or seeing a stock with good performance but temporarily not rising after buying, unable to resist selling it, and then the stock rises sharply, regretting it once again. This is a typical case of pursuing investment goals through speculation, but the result is regret. Everything has medicine, but there is no regret medicine. Only those who are suitable for both investment and speculation are versatile investors.

(1) Development and implementation of investment plan: Invest in the two stocks with the best growth performance. The implementation method is to make the first purchase in the bottom area of the stock, and then double the purchase every time it falls within a certain range. Hold for the long term, only reduce the position when there is a clear top, but keep at least 100 shares to force oneself to pay attention and not forget. When a better variety is discovered, an additional variety can be added.

At present, many fund institutions buy the hottest industry for the first time when the stock price is not high, and then double the purchase for every space that falls. After repeated operation of the band and the stock price is too high, they exchange varieties. Speculative market makers will choose to actively trade and buy more than 100000 shares that have repeatedly appeared at a low level. In the Economic Transmission Stock Exchange software, stocks with daily and weekly technical indicators at historically low levels usually have a cost price near the 30 day moving average. The absorption method of the above-mentioned stocks is to absorb them in batches based on the position, the trend of Maqidingzhuang, and the million dollar trend, and to master the T+0 method of high selling and low buying. Once the technical indicators fluctuate or sell stocks, they will be quickly eliminated.

(2) Speculative stocks with oversold stock prices: Oversold stocks have a significant advantage in performance compared to stocks at the same price, but their stock prices are relatively low. When they experience continuous volume increases, they only intervene in small amounts, increase positions at low levels, and exit with profits of over 20%. They should sell high and buy low appropriately.

(3) The formulation and implementation of theme plans: Investing in popular themes (5G, Huawei, technology, etc.), stocks with continuous inflow from major institutions, stocks with low circulation plate, stocks with continuous growth in performance and net profit, and stocks with low prices. The theme hunter function of the stock news exchange can real-time capture the hot themes and individual stocks introduced by major investors, and has dedicated investment advisors to select themes with sustainable development, monthly strategies, and golden stock pools. Only by capturing popular themes can there be a possibility of profit.

(4) Speculative small cap stocks: The stock price of this type should be relatively low, with a circulating cap of less than 30 million, and the performance prospects are still promising. It is possible to gradually absorb when the market experiences a sharp decline or reaches a bottom in the medium term. Hold on to the mid line and sell high while buying low, but chips purchased at low levels should not be easily eliminated.

Investors can develop one or a combination of several plans that are suitable for themselves based on their financial situation and personal habits, following the above ideas. It is recommended that investors with less operational experience focus on medium - to long-term investments, as there are not many buying opportunities in a year. Investors with hundreds of millions of funds only operate a few stocks a year, and there is no need to operate too many stocks for tens of thousands of yuan. Don't expect others to deceive and defeat the market makers. This is impossible based on strength, but it is completely possible to ambush several market makers at a certain stage. However, it is important to know oneself and one's enemy. Many people, when buying and selling, are neither close friends nor aware of each other, so they only end up trapped and have no one to control them. It is even more important to understand that the failure of the banker is due to oneself, not being defeated by individual investors.