Stock trading is divided into short-term trading and long-term trading. Short term trading emphasizes fast in and fast out, so what are the techniques for long-term trading? How to choose long-term stocks?
When choosing long-term stocks, the first consideration should be the upward trend of the stock, that is, the long-term moving average of the stock, such as the 120 day moving average, must at least level up, otherwise it will not be considered.
After meeting this prerequisite, the distribution of trading volume during the low-level oscillation bottom period of the stock should be examined to determine whether the cumulative turnover rate is sufficient. Generally, the turnover rate at the bottom of a long-term dark horse should be at least 200%, and if it reaches 400% or more, it is more ideal. During the period of bottom oscillation, there should be obvious signs of market makers intervening to attract funds, such as slow pull and sharp drop, rising with quantity but falling without quantity, etc. This is the key to choosing long-term stocks.
Finally, consider the fundamentals of the stock. If the industry is poor and there are great opportunities for restructuring, priority should be given. It is best if the outstanding shares and total share capital are not very large, and the financial burden should not be too heavy. Moreover, it would be even better if the industry is closely related to technology. Of course, in order to thoroughly examine a stock, it is also necessary to examine its affiliated companies, shareholder shareholding status, historical trends and events, senior executives, and other aspects, so as to make a more clear and in-depth judgment on the favorable and unfavorable factors.
After examining all these factors above, the final step is to conduct trend analysis and predict the future trend of the selected stocks. The key is the strong resistance and support levels in the future, as well as several possible future trends and corresponding operational strategies when there are variables in the trend. The most important thing when choosing long-term stocks is to first confirm that you have the patience to hold stocks for more than six months, otherwise don't talk about doing long-term things. Once these tasks are completed, we can seek a good buying point to enter the market.
Regarding how to choose long-term stocks, generally speaking, the following considerations can be made for long-term buying points: firstly, entering the market after the stock price crosses the long-term moving average and stabilizes; Another approach is to enter the market when the stock price hits the long-term moving average without volume and stabilizes, provided that the long-term moving average itself is upward.
Of course, there are other long-term entry opportunities to choose from, such as the breakthrough of the low-level box top, the breakthrough of the secondary low-level platform, and the unlimited deep decline after slow bull buying are also good long-term buying points, which can be considered in combination when determining the specific timing.