Of course, selecting strong trend stocks for trading is the best starting point for investment success. What is meant by "strong trend stocks"? In my opinion, it should be interpreted in two layers. The first layer is trend stocks. Opening the trend charts of different stocks, we can intuitively see that some stocks have a clean and sharp trend, rising all the way up, while others have a sticky trend, with three steps up and two steps down. The former is easy to hold, as long as you keep holding and waiting for the stock to rise, while the latter has to constantly suffer and may be knocked out of the market if accidentally - even if it is not shaken out, watching the stock price rise and fall is also a psychological torture. The second layer consists of strong stocks. Why are only some investors able to double their market value in a bull market? Choosing the right stocks is important, especially for big bull stocks where the index doubles and the stock price can multiply several times. If you encounter a weak stock, even if you rise in a bull market, you will still fall behind the index. Even if you constantly capture opportunities in the short term, the final result may not be as good as others blindly holding onto a strong stock - because you have lost at the starting line of stock selection. So, how can we capture 'strong trend stocks'? Let's break down the steps and start by selecting high volatility strong stocks. 1、 Cleverly use Beta to select strong stocks. The Beta metric in statistics is undoubtedly a great choice for completing this task. The specific calculation of Beta indicators will not be elaborated here, only the meaning of Beta indicators will be briefly introduced. Assuming that the Beta value of a certain stock relative to the Shanghai and Shenzhen 300 Index is 1.5, its meaning is that when the Shanghai and Shenzhen 300 Index rises by 1%, this stock will rise by 1.5%; Of course, while the Shanghai and Shenzhen 300 Index falls by 1%, this stock will also fall by 1.5%. If investors need to calculate the Beta of their stocks themselves, they can use the most common Beta function built into the Tongda Xin stock system. With this indicator, you can identify individual stocks that may outperform the Shanghai and Shenzhen 300 Index. 2、 Cleverly use system testing to select trend stocks. So, how should we choose trend stocks? There is also a very simple method, which is to use the most basic moving average system for trading to test the quality of a stock, that is, to use a short-term moving average and a long-term moving average as buying and selling signals, buying when the short-term moving average crosses the long-term moving average upwards, and selling when the short-term moving average crosses the long-term moving average downwards. If a stock can achieve good returns even with such a simple method, it can naturally be considered a standard trend stock. To implement the above program, cleverly use the parameters of the Tongda Information System for testing. That is, add the stocks in the stock pool (such as the constituent stocks of the Shanghai and Shenzhen 300 Index) to the test, then select a large bull market band, such as October 2008 to June 2009, and choose the MA moving average trading system. Set the trading system parameters according to your own long and short line preferences, such as using a 2-day moving average and a 30 day moving average. Finally, based on the results of system testing, the stocks with the highest total returns are selected as the trend stocks in this stage. 3、 Pay attention to the characteristics of industry sector rotation. I believe that investors can select the most explosive stocks by comparing the list of trend stocks and strong stocks. Of course, while selecting strong trend stocks using these two indicators, it is also necessary to consider the industry background of these stocks. Looking back at past market trends, we can see that most of the time, sectors have a rotating characteristic, with one industry rising and another industry following suit. Therefore, when establishing a stock pool for strong trend stocks, we must consider multiple industries in order for the East to shine and the West to shine.