In stock selection methods, using chip concentration to select stocks is also a common method.

1、 In the company's public information (F10), you can view the company's share capital situation, including share capital structure, institutional shareholding, shareholding situation, institutional shareholding, etc. We mainly need to analyze the relevant data of circulating shares, such as the number of shareholders, the number of shares held by the top ten circulating shareholders, and their proportion in the circulating shares.

1. Comparing the changes in the number of shareholders, if the number of shareholders decreases, the concentration of chips will further increase.

2. Compare the changes in the total shareholding and proportion of the top 10 shareholders. If the shareholding ratio of the top few increases, it can also indicate that the chip concentration is concentrated, and there is suspicion of the main force collecting chips.

3. Determine the degree of involvement of the main force. Calculate the total amount of circulating shares held by the top few (such as the top 10) and their proportion to the total amount of circulating shares. The higher this proportion, the higher the concentration of chips and the deeper the involvement of the main force. If this proportion continues to rise, it means that the main force will continue to attract funds, and there is still a lot of room for the future market. If the stock price drops while the main force's shareholding ratio remains unchanged or instead increases, it indicates that the main force is suppressing the market. At this point, retail investors need not panic. On the other hand, if the stock price continues to rise while the proportion of main players' holdings decreases, it indicates a decrease in chip concentration, and the main players may raise the stock price and distribute chips. At this point, retail investors need to take advantage of the situation and close.

Another method is to compare the changes in the number of major shareholders in the top few (first tier) and the shareholding ratio of the last shareholder in the top few shareholders (such as the top 10).

2、 View daily updates on shareholder changes. Track and analyze the stocks of interest to observe changes in the holdings (positions) of major shareholders. If the shareholding data of one or more major shareholders continues to rise, they can pay attention to that stock. In many websites' public information, there are usually public information prompts for individual stocks with abnormal transactions, such as the names and transaction amounts of the top five most traded branches or seats. If a stock experiences a significant increase in volume, it is mostly announced as a concentrated buyer. If there is a significant decrease in volume, most of the announcements are from concentrated sellers. These materials can be found on the computer or in newspapers. If the transaction amount of these business department seats also accounts for 40% of the total transaction amount, it can be determined that there is entry and exit.

3、 Analyze the chip distribution map. When the stock price is at a low level, if the scene distribution chart shows a decrease in the concentrated area of chips and finally basically concentrates in the bottom oscillation area, it indicates that the main force has basically completed the fundraising. When the stock price rises, the concentrated area of chips remains basically unchanged and is still in the bottom area, indicating that the main force has pulled up and left the main force cost area, but has not been distributed; When the stock price rises, the concentrated area of chips quickly moves up with the stock price, indicating that the main force is distributing chips. Therefore, when selecting stocks through the chip distribution map, it is necessary to choose stocks that have been completely digested from the high chip concentration area in the early stage, that is, stocks whose chip concentration area has moved down to the bottom area. In the short term, you can choose stocks where the stock price rises but the chip concentration area is still below the stock price.

The conditions that must be followed when selecting stocks

Condition 1: Different trends have different choices.

When there is an uptrend, choose individual stocks in the sector category; Stocks that break through during consolidation are better; When there is a downturn, I will not invest in sectors. Even if I do, individual stocks other than the leading ones will not be brought up along.

Condition 2: Choose leading stocks.

If you can't make money from the leading stock, how can you make money from other stocks? Even if I want to work on the entire sector, there is still one chip that is relatively concentrated as the leader. Similarly, even market trends such as oversold rebounds have the most concentrated chips.

Condition 3: Try to buy at the end of the trading session.

After completing the graphics for this day, we can easily see our intentions without being confused.

Condition four: Do not be intimidated by the bullish trend.

There are always a few stocks with the highest gains that will improve tomorrow or the day after tomorrow.

Condition 5: Refer to the overall market.

The analysis of the overall market is much simpler than that of individual stocks, with bull markets showing more positive than negative, and bear markets showing more negative than positive.

Condition 6: Do not believe in the statement that the more you fall, the more you buy.

After quantifying the risk, it can be found that buying more when the price falls is much more risky than buying more when the price rises. If it falls to the stop loss level, sell decisively.