One trick per day: How to establish your stock selection strategy?

One trick per day: How to establish your stock selection strategy?
11:00:06

Stock selection strategy is the most critical factor that determines the success or failure of investment. It can be said that every investor must have his own stock selection strategy. This article strives to simplify the complexity and focus on the main conflicting ideas to share with you how to establish your own simple stock selection strategy for your reference.

Step 1:Before establishing a stock picking policy, we must ask ourselves a question: "What kind of stock do you want to choose ?" The standard for good stocks is generally: "The current stock price level is low, the speculation space is large, the profitability is strong, the growth is strong, and national policy support ".

Step 2:Set up an indicator combination to reflect the characteristics of your desired stock. For example, indicator combination: 1. Dynamic price-earnings ratio (used to assess whether the current stock price is reasonable); 2. circulation market value (small circulation market value, easy to speculate ); 3. Net profit growth rate in the past two or three years (the greater the indicator value, the higher the enterprise's profitability); 4. The growth rate of main revenue in the past three years; 5. Policy support (the Central Economic Work Committee mentions key industries ).

Step 3:Set the health value requirements for each Metric in your metric combination. For example, the dynamic price-earnings ratio is <20, the market value of circulation is <3 billion, the net profit growth rate is> 50%, the main business income growth rate is> 30%, and policy support is supported (the Central Economic Work Committee will mention key industries ).

Step 4:Use the stock picking tool to search for stocks that meet the stock selection criteria.

One trick per day: How to establish your stock selection strategy?