For mid-range investors, the holding time is between short-term and long-term, generally lasting for more than a month and less than a year. There are five key tips for selecting stocks for mid-range stock trading:
1、 The stocks selected for the mid line stock selection must be in some sunrise industries, such as fast-moving consumer goods, biotechnology, healthcare, technology, etc;
2、 It is necessary to analyze the financial data of the company, and it is better for the quarterly net profit growth rate to exceed 50%. Stocks with significantly accelerated net profit growth rate compared to the previous quarter are the best;
3、 Judging from the proportion of fund holdings, if a fund belongs to a large institution and is recognized by the fund and holds a high proportion of stocks, it indicates that the stock has been recognized by the large institution and has promising growth potential. Generally speaking, it is best for the fund to hold more than 5% of the shares, especially the northbound funds in the Hong Kong Stock Connect. These funds are the smartest funds, and it is not wrong to follow them. If the amount of northbound funds entering a certain stock exceeds 50 million, the stock should have good performance. These data can be queried. Currently, there are almost hundreds of stocks in the A-share market that meet this condition, which reduces our search scope by four to five times;
4、 We can conduct a more precise screening of the stocks we have retrieved, and we can campaign based on the trend of stock prices to identify those stocks whose current stock prices have reached their highest point in the past year;
5、 After searching in this way, there will definitely not be too many remaining stocks. To further select from here, we need a certain amount of luck. Stock selection relies on strength for seven points and luck for three points.
The timing to buy mid line stocks
(1) When breaking through the resistance level
If the stock price of a certain stock has been hovering within a fixed range and has repeatedly hit a certain price without breaking through, this price becomes a resistance level for the stock to rise. However, once the stock rises in volume and breaks through this resistance level, there is a possibility of a significant increase in the stock price, usually by more than 30%. This type of stock is often operated by the main force for a long time, and investors can quickly follow up and make short-term investments.
(2) When organizing and washing dishes
The intermediate market trend of each stock must go through 3-5 waves of rise, and there is no stock that rises to its peak in one step. Even for strong cap stocks, there must be a stage of consolidation and consolidation in between. The key is how to accurately identify true and false breakthroughs and corrections, so as to buy in a timely manner during the final stage of consolidation and consolidation. After a period of stock price correction, if the market maker's in and out curve remains bullish, the stock can intervene by pulling out a large bullish line or a medium bullish line with volume at a low level.
(3) Follow the market
The real driving force behind the future changes in the stock market actually comes from the long short state of individual stocks, so the trend of the market first represents the overall development trend of the market. Strong markets have their own operational skills, while weak markets have their own operational rules. Only with a correct understanding and judgment of the overall trend can a suitable stock operation tactic be formulated. When the overall market is in an upward phase and some individual stocks are active, it is advisable to build positions to buy stocks and hold them all the way. When the market is declining, investors should try to observe and wait as much as possible.