How to choose stocks in a stock pool?

1. High risk stocks

Stocks with high beta coefficients are generally small cap stocks and speculative stocks. Such stocks move faster and more actively than the overall market, and trading such stocks can effectively increase returns.

2. Some large cap blue chip stocks

Large cap stocks are the favorite of large funds and institutions. Compared to small cap stocks, the liquidity of these stocks is not particularly active, but in the context of sluggish market conditions and overall lack of market liquidity, the liquidity advantage of these individual stocks becomes prominent. Therefore, in a specific market environment, these stocks may become the only ones we can trade. We combine them with high-risk stocks and place them in the stock pool. Once the market starts, blue chip stocks in the large cap market give way to small cap speculative stocks. (Be careful not to be knocked out when the market enters a critical moment!)

3. Stocks with stable trading ranges

This type of stock may fluctuate up and down in one box for several months, and may not provide a one-time opportunity for huge profits, but its stable operating trajectory provides us with abundant trading opportunities. "Small profits, quick turnover" is the best description of it.

4. Individual stocks that enjoy volatility

Their value is not recognized by many investors, and their trading volume is generally low. However, it often experiences sudden price fluctuations. Due to the lack of attention from investors, its price can experience exciting fluctuations driven by a small amount of funds. And this phenomenon is likely to repeat itself repeatedly. We closely observe these stocks in private stock pools to understand their habits and gain opportunities for huge profits.

5. Stocks with large price fluctuations within the year

We also need to closely monitor individual stocks with significant differences between their highest and lowest prices within a year. According to trading psychology, when a stock with huge price fluctuations hits a new low, investors who have bought and sold it before will believe that its price is likely to rebound to its original height and enter the market to buy at the bottom. The gradual entry of such a group of people will gradually push up its price, thereby bringing profit opportunities.

6. Running stocks that meet technical indicators

Regardless of whether the technical analysis indicators we are accustomed to using are moving averages, RSI, or MACD, they cannot be applicable to all stocks. Therefore, once we find a stock that is very suitable for the indicators we use, don't hesitate to put it in your stock pool, because you know the chances of winning against it are high.