Four core elements of short-term stock selection

Source: Internet
Author: User
Tags stock prices

Short-term operations are a game of stock market experts. They require deep knowledge in the stock market and are familiar with the banker's trading method. They have a good psychological quality and more important point. They need time to pay attention to the banker's every move. The key to short-term stock selection is hot spots. Investors must have a keen insight into the formation of hot spots. Short-term stock selection should pay attention to the following three aspects:

I. Transaction volume. As the saying goes, "volume is the price forerunner", and volume is the forerunner of the price. The rise of the stock price must be in concert with the amount. The enlargement of transaction volume means that the turnover rate is increased, the average position cost is increased, and the pressure on the previous position is reduced, so the stock price will continue to rise. Sometimes, when the banker's chips are well locked, the stock price may also be scaled up, but the scale-up won't last long. Otherwise, the average position cost cannot be increased, and the selling pressure increases greatly, the stock lacks sustained upward momentum. Therefore, short-term operations must select a stock with a certain amount, and pay special attention to the stocks in the bottom shard.

Ii. Graphics. In short-term operations, in addition to the high volume of transactions, we should also pay attention to the changes in graphics. There are several types of images that deserve high attention: W bottom, head and shoulders. Arc Bottom, platform, and rising channel. When the bottom of the W, the top, and shoulders, and the back of the arc should break through the neck position, it should be the time to buy. There are two points that must be highly noted here. First, the breakthrough must be effective. A breakthrough without the cooperation of transaction volume is a false breakthrough, and the stock price often returns to the starting position quickly. Second, low-price breakthroughs have higher reliability. The high-price breakthroughs may be the "multi-headed traps" created by the banker to lure retail investors to follow suit, so as to achieve the goal of shipping. Many times, when breaking through the neck position, there is often a back-pumping confirmation, this can also be used as a warehouse creation opportunity; stock price platform arrangement, the volatility is getting smaller and smaller, in particular, when the stock price is low enough to receive a few sashes or a few sashes, the stock price often chooses to go up and break through. Stocks that adopt the rising channel can be bought when the stock price hits the lower rail, especially when the bottom rail is the 10-day or 30-day moving average, it is sold when the stock price hits the upper rail. In addition, there are also flag-shaped sorting. Two important figures are organized in the box, and their operation tips are similar to those at the W bottom. I will not repeat them here.

Iii. Technical Indicators. There are countless technical indicators in the stock market, with at least one thousand of them focused on each other. Investors cannot cover all of them, but they only need to be familiar with several of them. Common technical indicators include kdj and RSI. Generally speaking, K value is a better time to buy at a low position (about 20%) when the D value is mounted twice; when the D value is worn twice at a high position (more than 80%), a dead cross is formed, it is a better time to sell. When the RSI index is 0-20, the stock is oversold and can be created. When the RSI index is 80-, the stock is overbought and can be closed. It is worth noting that the biggest disadvantage of technical indicators is the lag. using it as the only reference standard often leads to a large error. Many Strong stocks, with high indicators being inactive, but their share prices continue to soar. Many weak stocks have already been low, but their share prices are still falling. In addition, the banker often uses technical indicators to make a mess of indicators when purchasing goods, and the indicators are almost perfect during shipment. The use of indicators to cheat money is almost a common market-making method of the banker. Therefore, when applying technical indicators, we must make an in-depth analysis based on various situations, especially the relationship between quantity and price.

4. Average. Short-term operations generally refer to the five, ten, thirty days average. The five-day moving average goes through the 10-day and 30-day moving average, and the 10-day moving average goes through the 30-day moving average, which is called the Golden Cross and the buying time. The opposite is the dead cross and the selling time. The three moving averages are listed in the upward order as the multi-headed arrangement, which is the performance of strong stock prices. The stock price is scaled back to the five, ten, and thirty-day moving averages (Note: It must be scaled back ). Which of the following averages should be bought at the same time should be determined based on the trend of individual stocks and the market. The three moving averages are listed below as short positions, which is a weak performance. Not suitable for intervention.

Short-term operations, stock prices soar and slump, short-term masters should not only learn to profit, but also learn the same important thing: cut meat. If you have the courage to participate in short-term operations, you must have the courage to admit defeat. "Stay in the mountains, not afraid of burning firewood ". When making a wrong decision and buying a falling stock, you should sell it decisively to prevent further attacks. As long as you are good at summing up and judging the cause of the mistake, it is also a compensation for cutover. Short-term stock trading must be fast-forward and fast-out, and a stop position should be set. The specific value depends on the individual's situation. The value can be 5% or 10%. The stock price falls below the stop position and must be sold decisively, do not fantasized about it. Even if the stock price is likely to rise, you should avoid risks and strictly follow the stop-loss position.

Contact Us

The content source of this page is from Internet, which doesn't represent Alibaba Cloud's opinion; products and services mentioned on that page don't have any relationship with Alibaba Cloud. If the content of the page makes you feel confusing, please write us an email, we will handle the problem within 5 days after receiving your email.

If you find any instances of plagiarism from the community, please send an email to: info-contact@alibabacloud.com and provide relevant evidence. A staff member will contact you within 5 working days.

A Free Trial That Lets You Build Big!

Start building with 50+ products and up to 12 months usage for Elastic Compute Service

  • Sales Support

    1 on 1 presale consultation

  • After-Sales Support

    24/7 Technical Support 6 Free Tickets per Quarter Faster Response

  • Alibaba Cloud offers highly flexible support services tailored to meet your exact needs.