Not all stocks have room for short-term trading. Generally speaking, only stocks with moderate size, active trading, and active turnover have room for trading. Why do we need to consider the size of the market when selecting short-term stocks?

There are many super large cap stocks in the A-share market that are manipulated by multiple main players or funds at the same time. From the perspective of market speculation, in the high-level bull market, main institutions and large funds often focus on mid to large cap stocks, especially from the perspective of selecting market leaders. Obviously, high-quality large cap stocks are more suitable.

Due to the fact that controlling these large cap stocks can have an impact on the index, they are mostly used as a barometer to regulate market trends. Therefore, the stock nature may appear rigid and difficult to achieve significant performance, making it difficult to have operational space in the short term.

When selecting stocks, one should learn to judge the level of stock activity. Whether a stock is active or not is an important condition for determining its investment value. We can judge the activity level of stocks from the following aspects:

(1) Use trading volume to make judgments. The trading volume level represents the intensity of competition between long and short sides behind the movement of stock prices. A large increase in volume can indicate the activity level of the stock, while a continuous increase in volume in the same area will result in a stronger signal of stock activity.

(2) Use technical indicators to make judgments. If a golden cross does not rise and a dead cross does not fall, this type of stock is relatively inactive and should be avoided in the short term.

(3) Use the moving average to make judgments. Stocks whose stock prices rise along the short-term moving average are usually more active.

(4) Judging by turnover rate. The higher the turnover rate, the more active the trading of stocks, and the higher people's willingness to buy, which is what we call popular stocks. Stocks with higher turnover rates are more speculative, with larger fluctuations and higher risks. However, it is precisely these large fluctuations that are the target of short-term capital pursuit.