General investors buy and sell stocks through two trading methods: one is to select stocks based on fundamentals; Another approach is to select stocks based on technical aspects. Fundamental stock pickers usually focus on the impact of external market news on the stock market, while technical stock pickers pay attention to changes in indicators and patterns. On the technical side, it is divided into technical and anti technical operations. In fact, it refers to the use of fundamental hints and easily recognizable technical trends by market makers to conduct reverse operations. This is also commonly referred to as the "bullish" and "bearish" market trends in the stock market.
Whether choosing fundamentals or technical aspects, quantity at price has become the most basic common sense for buying and selling stocks at present, because when the stock market experiences fluctuations, whether the quantity increases or decreases, and whether to break upwards or downwards requires the cooperation of quantity. Therefore, buying and selling stocks will not be separated from the impact of volume on individual stock trends.
Especially when some individual stocks experience sudden massive declines or increases due to negative or positive fundamentals, some investors will blindly operate. In fact, the occurrence of such trends is often the deliberate behavior of market makers, with the greatest element of fraud. For this phenomenon, it is necessary to first distinguish at what price the volume is placed and what form the K-line appears. Investors will not benefit from any sudden surge in volume. Once there is a huge bullish or bearish trend in the market, it is considered abnormal behavior, and simple and impulsive speculative thinking is often trapped in the current glory. Therefore, technical analysts prefer to use technical indicators such as morphology to jointly analyze and make decisions.
The general trading volume size refers to the turnover rate of individual stocks over a relative period of time. As there is no turnover rate in the overall market, it is usually only for individual stocks. Therefore, when analyzing the turnover rate of individual stocks, attention should also be paid to changes in the equity structure. For example, some investors pay more attention to the turnover rate of new stocks on the first day of listing, especially when the turnover rate of the stock exceeds 73% on the first day, which will stimulate their attention to the trend of the stock. However, they are less sensitive afterwards because they can find the proportion and cost of the banker's holdings through turnover rate. Therefore, assessing the trading volume of a stock does not necessarily equal the turnover rate, but rather the turnover rate is determined by the ratio of the average turnover rate at each stage to the highest turnover rate. By analyzing the turnover changes in stock prices at different stages, predict what kind of trend the stock will show after a certain period of time.
1、 When the turnover rate is between 1% and 2%, the stock price operates in a narrow range of small yin and small yang fluctuations, and the trend is generally in a sideways consolidation, which is also known as the retail market in operationFor those who are confused about stocks or about buying and selling, it is not recommended to participate in this adjustment trend, especially after the short-term head shape appears. To determine whether this market has already appeared, in addition to understanding the impact of policy and fundamentals on market production, one can still use trading volume relationships to make judgments.
There are several types of stock market operations that do not participate in the market trend:
Firstly, not participating in the adjustment of the overall market contraction is a waste of time and carries market risks, with buying odds greater than 90% each time;
Secondly, if the overall market or individual stocks held by oneself experience a strong bullish trend and do not participate, this pattern is often the timing for market makers to sell.
Thirdly, holding individual stocks at relatively high prices without participating in large quantities is also a manifestation of market makers' selling performance.
Fourthly, we will not participate in the announcement of benefits or the announcement of financing tendencies.
2、 The turnover rate increases to 3% to 6%, and the stock price usually shows a more active trend, but it may not necessarily generate a breakthrough market.For this type of turnover, general investors should first grasp the changes in the form of individual stocks under different trends, and then judge whether the increase in turnover rate will lead to a downward or upward trend in stock prices. They cannot simply rely on the increase in trading volume to think that the stock price should rise. The market with a turnover rate between 3% and 6% generally occurs when there is new news about the fundamentals of individual stocks, such as adjustments in equity structure, expected losses or gains in interim and annual reports.