Stock Selection Skills: Strategies And Tactics In The Bottom Seeking Stage

Strategically, the stock market of any country will suffer from natural disasters Economics And other internal and external factors. If the stock price drops rapidly, it is often because the company's fundamentals have changed qualitatively with the macro-economy, or the stock price has been seriously overdrawn. When Market When you are on the way down, you will buy more and more if you buy or cover positions too early. However, since 8 months in the domestic market, the cumulative decline of the stock index has exceeded 54%. At this time, investors should not blindly cut their positions. In the long run, the stock market will not fall endlessly, because China's macroeconomic development has not reversed, and some difficulties in the early stage equity market The impact of is temporary. When the stock price falls below the value and there are "break" and "break net" stocks everywhere, the real bottom will appear, which is suitable for strategic position building.

Tactics: Once the market and the stock price enter the relative bottom area, we should pay attention to stock selection tactics.

Look at the general trend. The stock market continued to fall under the double attack of "internal and external troubles", which had a negative impact on the psychology of investors. If the stock price falls more severely than the bad news itself, and when the policy is favorable, the market is insensitive, it is time to consider buying stocks.

Dual value. "Focus on potential when rising and quality when falling". When there is a turning point in the trend, it is necessary to select individual stocks whose intrinsic value is significantly higher than the stock price.

Third, look at the trading volume. Before the stock price bottoms out, the trading volume will continue to shrink. When the market becomes stable and the market surface changes, select active stocks with moderate and enlarged trading volume.

Quadruple form. Select individual stocks whose stock prices have been far below their historical transaction intensive areas and recent hold up transaction intensive areas, and stand above the downtrend line.

Fifth, look at indicators. Stock selection depends not only on daily indicators, but also on individual stocks whose daily, weekly and monthly indicators have reached the bottom synchronously.