Stock swap is an active strategy for resolving conflicts, and when used properly, it can effectively reduce costs and increase opportunities for resolving conflicts. But stock swap is also a risky way to unwind. If there is a mistake in operation, it will result in losing both the wife and the soldiers. So investors need to be very cautious when exchanging stocks, and in practical applications, they need to master the rules of stock exchange.
1、 Keep small and exchange for large
Small cap stocks are prone to being selected by more market makers for control due to their low cost of capital restructuring. As a result, small cap stocks tend to be more active and have stronger trends than the overall market. So, small cap stocks are the preferred variety for outperforming the trend and holding stagnant stocks.
2、 Keep low and switch high
Low priced stocks are generally overlooked by the market, and their investment value is often underestimated by the market. Moreover, due to their low absolute position, low-priced stocks have limited room for further decline and lower risk. If it is a low-priced stock that has fallen deeply from a high position, it has a certain potential for upward movement because it is far away from the concentrated area of the upper bound. The price of high priced stocks themselves implies high risk, which puts significant adjustment pressure on high priced stocks. Therefore, when converting stocks, it is necessary to exchange for high priced stocks and retain low-priced stocks.
3、 Keep new and replace old
Due to the lack of expansion, the circulation of new and secondary stocks is biased, and they may be controlled by the main force. Moreover, for newly listed stocks that have not been wildly speculated on for a long time, they are less likely to be trapped in the upper tier market. Plus, the newly listed stock has just raised a large amount of cash, which often has new profit growth points. These factors can easily trigger the hype enthusiasm of mainstream funds.
4、 Stay strong and exchange for weak
Characteristics of weak stocks: If the market is adjusted, weak stocks tend to fall with the market, often exceeding the range of the market; If the market rebounds, even if weak stocks follow the market rebound, their strength will still be relatively weak. So, once investors discover that they hold such weak stocks, whether they are trapped or profitable, they should clear their positions in a timely manner and choose strong stocks. This is the only way to effectively ensure the utilization rate of funds.
5、 Exchange for non owned shares with owned shares
Zhuanggu refers to stocks with main players involved, who rely on their strong financial resources to avoid the ups and downs of the market, constantly pushing up prices, and presenting a trend of strong players remaining strong in stock prices. Due to the lack of main capital support, most of the non owned stocks are supported by small retail investors. If you hold this stock, you will have to work hard with other retail investors.
6、 Exchange New Zhuang Stocks for Old Zhuang Stocks
Because regardless of whether there has been a significant upward trend in the past, or whether there is time and space for profit, as long as the long-term time cost is suppressed, it is very easy for Laozhuang stocks to consider how to escape. Therefore, the upward potential and strength of Laozhuang stocks are questionable. The Xinzhuang Stock Index refers to individual stocks whose main intervention time has not exceeded one year. Due to the recent intervention of new funds, their explosive power often exceeds that of traditional Chinese stocks.
7、 Reserve stocks with high volume at the bottom and exchange for stocks with no volume at the bottom
What is being exchanged is for something that can rise and rises quickly. Anything that increases volume at the bottom will be weaker than the overall trend of the market when following the ups and downs of the market. Even if it is selected by the market makers in the future, the main force will push it down to attract funds before building temporary positions. If there are already stocks owned by Zhuang and they are not trading at the bottom, it can only indicate that the main force has already absorbed a lot of goods and is thinking about how to distribute them. The future upward potential can be imagined. So, when switching stocks, it is important to pay attention to bottom volume stocks as much as possible.
8、 Exchange mainstream sector stocks for niche stocks
Some obscure stocks only fluctuate within a few cents a day and have few transactions throughout the day. If you have these stocks in your hands, you should sell them early and exchange them for mainstream stocks that have not yet seen significant gains.
9、 Exchange stocks with potential themes for stocks with clear themes
There are often vague themes circulating in the market, and whether they are true or not is not important. As long as they can gain the recognition of the investing public, stock prices often perform well. But once the theme becomes clear, the hype ends. So, when switching stocks, it is important to choose stocks with potential obscure themes, rather than stocks with already realized positive news.
