Whether on TV or online, as long as it is related to stock consultation columns, we often find many questions asking analysts, experts, and others about the future trend of the stocks we have bought. Among these consultation contents, most of them are inquiries after being covered up.

What does this phenomenon indicate?

There are only two points to be pointed out. Firstly, one has no bottom line on the stocks in their hands; Secondly, I am not familiar with the stocks in my hands.

Generally speaking, when investors buy stocks, they are most likely to buy randomly due to changes in market sentiment, or in other words, they are more likely to buy following the trend after listening to others' introductions. After buying a stock, it immediately rises and everything can be said. However, once the stock falls after buying, it appears uncertain, leading to a scene of not researching before buying, feeling anxious after buying, and seeking advice from people everywhere.

If you are asking someone who has conducted detailed and in-depth research on the stocks in your hands, they may give good advice and conclusions. If you are asking someone who is not even familiar with the situation of this listed company than yourself, then they are likely to be like Tang Bohu, lighting up the autumn fragrance and causing chaos. Therefore, I once said a concept that seeking others is better than seeking oneself.

To ensure that investors do not lose money when buying stocks, they must conduct research on eight aspects:

1: Whether it conforms to sustained high growth and whether the compound annual growth rate is above 30%;

2: Whether the share capital structure is reasonable, such as having a small overall flow and good potential for future share capital expansion, generally speaking, medium and long-term investors must choose from a circulating stock of 50 million and a total share capital of less than 200 million. Large cap stocks definitely do not have such advantages;

3: Whether the financial accounts of the listed company are clear and free from historical issues, or whether there are unhealthy related party transactions or excessive long-term liabilities.

4: Whether the industry of listed companies is in a sunrise industry actively supported by national industrial policies, including whether the production and sales market is perfect, whether technological and resource advantages have monopolistic colors, and in a market economy environment, if the competition is fierce, there will inevitably be a decline in performance, such as the previously mentioned net asset return rate, gross profit margin level, etc., which are greater than 30%, and inventory not exceeding 20% of total production. If the gross profit margin of a product is less than 30%, it can be said that this enterprise has no benefits to talk about.

5: Is the stock price at a historical relative low point; Or it may fall to the previous low point and be re protected by the main force, forming an upward trend; Or in other words, it is close to the stock prices of similar listed companies, far from the historical trap area, and has considerable ability to rebound from oversold; Or it can be said that the positioning is reasonable or there is underestimation, and there is no upward pressure to release new stocks and sub new stocks.

6: In terms of technical form, there is no breakthrough or price drop, and there is gradually capital replenishment, with the short-term moving average system entering a bullish position; For those problematic stocks and avalanche stocks, one must not have blind thoughts of rebounding. In fact, many technical experts do not suffer losses at the peak, but rather suffer losses in every attempt to rebound.

7: It is very important that there is no significant impact of non unlocking pressure in the short term

8: Whether the stocks that one is concerned about belong to speculative nature and whether there are fundamentally negative situations. If it is speculative capital speculation, it is necessary to pay attention to leaving early before the signal of stock price stagnation is issued after continuous explosive growth; If the fundamentals of the individual stocks being focused on deteriorate, there is no reason to buy; Assuming it is a small cap growth stock purchased, the fundamental situation is very good. Even if there is a short-term trap, as long as you patiently wait, you can eventually achieve a turnaround and get out of the trap. Speculative stocks and junk stocks will not be so lucky. This is also an important reason why it is repeatedly emphasized to buy high-quality stocks that are worth trusting when buying stocks.

Of course, there are other ways to evaluate and analyze whether a stock is worth buying, but the above eight points must be fully considered before buying. By reviewing and summarizing any losses or oversights, we are actually too excited before buying, without carefully considering the price or timing of the purchase. Especially, there is a common misconception that we only pay attention to buying without thinking about how to sell. Many people only estimate the immediate rise of stocks when they buy them, without realizing that in the event of a decline, even with some estimates, there are still many funds that cannot sell early at key stop loss or flat positions.