Tips for Stock Selection: How to Select Ten fold Stocks from the Bottom?

Today, let's talk about how to select ten fold stocks from the bottom?

Generally, a large bull stock will go through four stages before starting: large capital establishment - private equity institutions keeping up - speculative capital intervention - retail investors intervention.

The operation of large funds involves a large amount of funds for each stock, with a long time period. Often, they will intervene in advance, slowly attract funds without significantly raising the stock price, and then gradually sell out as positive news continues to spread among listed companies.

After the establishment of large capital positions, some private equity institutions will follow suit and further boost stock prices. The holding period of private equity institutions is shorter than that of large capital.

When the speculative capital intervenes, the news begins to be widely publicized (we can also feel that the speculative cycle of speculative capital can be as fast as one day, and as slow as no more than a week). Therefore, when the speculative capital intervenes, it is often the end of the market, and it is also the stage when the stock price rises the most fiercely. It can be said that it is the last madness, and retail investors will follow the trend and enter. However, at this time, large funds begin to retreat, and retail investors often become buyers in the end!

As a retail investor, the key to winning is not to follow the hot money in the final stage and chase after the rise and fall, but to identify the areas where large funds are building positions, enter at the beginning, and take the initiative.

To summarize the common characteristics of individual stocks with large capital holdings:

(1) Among the top 10 circulating shareholders, there are both new natural persons and institutions

Imagine if all the top 10 circulating shareholders of a stock were institutions, who would dare to manipulate the stock price? What if the main force goes and funds, asset management and other institutions directly give you all the goods? So the main force generally does not choose to invest in stocks that are entirely composed of institutions; What if they were all natural persons? So it's not enough to have institutions in charge. Institutional intervention usually involves news (after all, it allows for close contact with executives of listed companies and first-hand information), some of which are not available to ordinary investors. The trend of individual stocks often contains some unknown information. So only having both is the best!

(2) The best circulating stock market value is below 3 billion

Here, it should be noted that the circulating shares are calculated based on the market value excluding the top 10 circulating shareholders. If the common characteristics are lower, it is actually to ensure the firmness of the chips of the top 10 circulating shareholders. Under the first condition, the number of circulating shares can be subtracted from the number of shares held by the top 10 circulating shareholders, multiplied by the current stock price. This value represents the number of shares that can be traded outside during a certain period of time. This value is best around 1 billion, not exceeding 3 billion. The less circulating market value, the more concentrated the chips are, making it easier to raise them.

(3) There is a theme

If each stock has no theme, no matter how the main force pulls, there will definitely be no opponent in the market. As long as there is theme and imagination, it is enough. Of course, there can be many themes, such as high performance growth expectations, high resale expectations, and so on.

Attention: When selecting stocks, it is necessary to analyze, judge, and determine the theme by yourself, and then continuously track individual stocks to see their announcements or news, or judge whether your theme judgment is accurate based on market performance. If the theme judgment deviates, it is definitely not possible and needs to be constantly verified and corrected.

(4) Special form

For example, the W bottom form, the immortal guidance form, the V-shaped reversal form, and the bottom volume horizontal plate form may all be the intervention actions of the main force, so if you pay attention to them, you need to verify whether the first three are consistent!! If it meets the requirements, track the stock and once confirmed, look for buying points to buy!

Generally speaking, selecting the main stocks involves the following aspects: chips, themes, technology, and timing.

How to select the main stocks requires flexible application and adaptability in continuous practice. But the general analysis framework cannot escape from the above points. I hope everyone can master the above knowledge points and achieve the result of dancing with Zhuang in future stock trading.