There is a stock proverb that goes, 'When the market falls, the quality is high.' 'If it doesn't fall, then it's bullish.'. Stocks that can counter the trend and stabilize or even rise during a market downturn are either dominated by the main force or taken advantage of by the main force to buy. These two basic judgments lead to a conclusion: the main force is present! So focusing on stocks that are going against the trend is the best strategy for the current market.

Stock selection method for stock market crash:

Choose stocks that resist market downturns. Market downturns refer to stocks (or sectors) that rise against the market during a certain period of time when the overall market is adjusting to a downward trend, or when the market is falling rapidly but the stock is falling slowly or less. In other words, individual stocks are not synchronized with the market and resist or rise against the market trend. In the process of the overall market decline, stocks (or sectors) that can resist the market downturn or even rise are mainly due to two reasons: firstly, the original main force is still stationed among them, fully protecting the market and preventing the stock price from falling, that is, Zhuang stocks. 2、 The stock has a very good quality or has some substantial theme. Once the trend improves, this type of individual stock will have explosive power and huge potential for upward growth.

You can filter this type of stock:

1. Stocks that have just broken through the platform and encountered a sharp decline in the overall market. This type of stock has been consolidating for a long time before, and the main force may be buying or washing up the market. After finally meeting the conditions for an upward breakthrough, it encountered a decline in the overall market, and the main force had to take advantage of it. Let the market also fluctuate with the overall market, but this kind of oscillation is different from the oscillation of ordinary stocks. Its intraday characteristics are: the oscillation of ordinary stocks is a random fluctuation that follows the decline of the overall market, and its decline is usually greater than that of the overall market, and the strength of the pullback is weaker than that of the overall market. And the volatility of these stocks has a bottom line, not random. That is to say, when the stock price drops to a certain extent, it cannot continue to fall. At a certain price point, there are always funds protecting the market. Selling here is like sinking into the sea. No matter how you sell, the stock price still fluctuates slightly in a fixed area and refuses to continue falling. Usually, these price points are the upper edge of the early consolidation platform or the upper half of the platform height.

2. Stocks that experienced a pullback during an uptrend due to a sharp drop in the overall market. This type of stock has formed a trend of upward breakthrough with a certain increase, but due to the sudden sharp decline of the market, it has triggered a surge of profit taking and formed a pullback trend. At this time, the banker will also take advantage of the situation and wash up the market. It is difficult to truly wash out people who usually want to wash out the market, because in an upward trend, investors have almost zero willingness to sell. This is determined by people's greedy nature. Now that we have encountered a sudden drop in the stock market, it has been a great help to the market makers.

Trading characteristics: After the stock price opens high, there is a slight surge followed by a rapid decline, and the magnitude of this decline sometimes avoids the overall market downturn and is even deeper, but it quickly picks up again.. And when you think the stock price is about to rise, it quickly falls back again, and then quickly rises again. However, as this action is repeated, the range of its ups and downs will become smaller and the trading volume will also become smaller, usually pulling back in the end of the market. This is the famous "U" - shaped washing disc.

Generally speaking, the volatility of these strong stocks does not last for more than two days, and sometimes they return to an upward trend the next day. Therefore, buying these stocks during sudden market crashes is a good opportunity for quick profits.

3. Stocks that are expected to increase positively. This type of stock already has a clear expectation waiting for it, and now there is a sudden fluctuation in the overall market, which is also a great buying opportunity.

For example, a certain stock is expected to have performance in two days, and the performance has already been predicted to increase or turn losses into profits. The stock price has already reacted in advance, but before this reaction is in place, it suddenly experiences a sharp decline. This is a great buying opportunity for you to save time and cost. Almost immediately increases upon purchase! However, it should be noted that one element here is that the stock has already had an early response, rather than being indifferent. Early response indicates that funds are already paying attention to their expected positive outcomes. However indifferent, it means that there is no main force involved. Even if the expected good news is good, there will not be a decent market at that time, at most it will only be a retail market.

Characteristics of strong stocks during the decline:

Most strong stocks have strong resistance to decline, and we can identify them during the decline process

1. Individual stocks are showing initial strength: Judging from fundamentals, a general direction screening should be conducted based on expectations of future industries, policies, and restructuring. Some individual stocks may have strong short-term trends supported by certain favorable factors. But once the good news is realized, due to the bearish outlook of the entire industry, the speed of decline after the good news is exhausted is very astonishing. So we can look for some individual stocks in the sectors we see in the future.

2. Stocks that never fall are not necessarily strong stocks. Falling is a process of correcting overbought and an indispensable part of rising, and all bull stocks will definitely have a pullback stage. Therefore, there is no need to pursue individual stocks that can turn red against the trend

3. Distinguishing whether it is deliberately driven by funds, the purpose of some strong stocks is only for large investors to maintain their stock prices in a weak situation, waiting for a rebound to control the price. The possibility of these stocks becoming future bull stocks is very small. And during the trading process of these individual stocks, there are obvious signs of deliberate capital push. For example, if the trading is not coherent, there is a concentrated surge in volume in a pulsating manner, the trading is bleak at other times, or the price is driven by upward buying without real buying support, and so on. When choosing strong stocks, it is best to avoid these purely fund driven stocks and find individual stocks with real buying support.