Short term stock selection techniques and practical skills

If investors can master the short-term stock selection skills when the market stabilizes, they can handle the future market development with ease. The specific principles are as follows:

1、 When the market continues its downward trend, investors should start actively selecting stocks to lay the foundation for timely participation in speculation when the market stabilizes in the future. At this time, it is important to focus on selecting individual stocks that have experienced a significant decline in stock prices but are now leading the market to stop falling and stabilize, and list them as the focus of attention.

2、 When the overall market stabilizes and stops falling, it is necessary to conduct a re evaluation of the selected stocks and select those that can successfully build a small bottom pattern in terms of form. The stabilization time of individual stocks is significantly longer than that of the overall market, and after a successful bottoming out, the trend of individual stocks should have a certain degree of independence.

3、 Further select the stocks that can moderately increase their trading volume at the bottom after the selection.

4、 Confirm. When waiting for the market to confirm that it has stopped falling and stabilized, and there are signs of strengthening, for stocks that have undergone multiple strict screening, if a stock can show a strong upward trend with a large volume, it can be confirmed as a short-term buying signal and should be promptly followed up to buy

There are two main selling techniques that need to be mastered for the individual stocks purchased:

1、 Due to the fact that this stock selection method is based on short-term foundations, if the stock surges too quickly in the short term and investors make substantial profits, it is important not to be greedy and to take profits in a timely manner to ensure safety.

2、 Because this stock selection technique specifically selects stocks that stabilize and take off before the overall market. So, when the overall trend is strong, these stocks often have bottom of the line profits, and investors can cope with whether the future market is big or small, and whether it is a rebound or reversal. At this point, investors can choose the timing to sell based on their analysis of the overall trend.