How to choose dark horses for stock trading? At first, the term 'dark horse' was not a term in the stock market. It refers to a horse that was originally not favored on the racetrack, but can surprise the majority of people and become an unexpected winner in the race.

The reason for explaining the meaning of dark horses is that many investors have certain misconceptions about them. In the stock market, dark horse stocks are not the star stocks that everyone pays attention to, nor are they the stocks with the largest gains. But rather, it is a stock that investors were originally not optimistic about, but was able to rise to prominence. So, the technique for selecting dark horses is not to choose strong stocks that everyone knows, but to look at the essence through the phenomenon and select future strong stocks from stocks that most people are not optimistic about.

The core technology for accurately selecting dark horses is to identify their characteristics, and the most important feature of dark horses is that they are not favored by the investing public. The specific features are as follows:

Firstly, stocks that can become dark horses will always encounter various negative factors before launching. The negative effects are mainly manifested in the deterioration of the operating performance of listed companies, major litigation issues, condemnation and investigation by regulatory authorities, and significant expansion in weak markets. Although there are various forms of bearish sentiment, one thing is common: bearish sentiment can easily lead investors to become pessimistic about the prospects of the company, and some may even trigger investors' despair and sell stocks regardless of cost.

Secondly, the trend before the formation of the dark horse also made the investing public lose hope in it. Because the trend is very ugly, usually a long continuous bearish candlestick runs through various technical support levels, and the trend pattern also shows a serious break. Various commonly used technical indicators also show a weak pattern, making investors feel that there is huge downward space in the future, and their psychology tends to panic, thereby shaking their confidence in holding stocks.

Finally, stocks that can become dark horses will have an unnatural increase in volume during the bottom building stage, and the effective amplification of volume and energy indicates that incremental funds are actively involved. Because retail investors will not rush to build positions under the dual impact of negative fundamentals and technical downturns, the increase in volume at this time indicates that some panic stocks are fleeing without considering costs, and the fact that stock prices remain stable during the increase in volume precisely proves that mainstream funds are taking advantage of the situation to build positions. Therefore, it can be inferred that the stock is highly likely to become a dark horse in the future.