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How to learn stock investment

How to learn stock investing ? The application of experience in the stock market needs to be flexible. Don’t stray from the current reality to improvise. The characteristics of those experiences in the past are made by the main force, and the main force can be changed at will. The same indicator state leads to different results. You want everyone to know some experiences. Such as the characteristics of the top, there are six more prominent features, such as the relatively high trading volume, the serious deviation of the daily indicators, the crazy rise of individual stocks , the rapid rotation of the plate, the adjustment of the leading plate, and the abnormally high enthusiasm of people. Change these characteristics according to the situation, so that each top is different.

Therefore, any experience used in stock speculation is not set in stone. Due to the improvement in the level of retail investors ‘ stock speculation , the main players often make great efforts to become winners, constantly changing their trading methods, innovating some methods, and breaking away from the characteristics of past experience, in order to mislead their opponents and make retail investors miss their experience. Circumstances change, conditions change, and experiences fail. In the stock market, stock prices are changing all the time, and the main strategies for making deals are endless. From this point of view, there is nothing permanent in the stock market, and experience must be continuously summarized and accumulated to adapt to market changes. Once a certain experience is reached and widely used, the main force will abandon it completely, or reverse the operation. It must be combined with reality and change with the change of the main force.

There is a catchphrase often heard in the stock market: “Never put your eggs in one basket”. This means that when buying stocks, you can choose a few more stocks, instead of concentrating your funds on individual chips, so that you can diversify the risk of holding stocks, and you will not lose your old capital at one time. Some investment gurus also strongly advocate this view.

Objectively speaking, there is some truth to this statement, especially for some new investors who have just entered the market. When they do not know how to choose stocks and are not skilled in the operation, they can indeed pick a few more stocks to find a sense of trading. The east does not shine and the west shines. This one doesn’t go up that one goes up. Theoretically, the risk of this diversification law can be mitigated, but don’t take it as a “sacred saying” and praise it as “sacred and inviolable”.

In fact, there is a gap between good intentions and reality. This one goes up, that one goes down, this one goes down, that one goes up, the positive and negative offsets, and the bamboo basket hits the water and the sky is happy. Unless you encounter the general rising market in the early stage of the startup, or the capital account is like a snail on the wall, you will never see a sudden rise. Calculated, compared with centralized investment, the unit cost of the former is about 7% higher than that of the latter due to the reduction in the relative quantity of one sale and the increase in the number of transactions and fees. Therefore, the risk is “smaller”, but it is more difficult to make money.

In addition, the increase in the number of shares held increases the difficulty of management, and also brings the risk of fleeing at a critical moment. my country’s stock market is still immature, and the probability of skyrocketing and plummeting is very high. Of course, the concentration and dispersion of chips are also relative, and vary from person to person, money, time, and stock. If you have rich experience, a large amount of capital, and the stock index and stock price are relatively low, you can do a few more; when you are inexperienced, your capital is limited, and the market and stock prices are at a high level, you should do a few less and not be too mechanical.

Suggestions for reference:

When concentrating superior forces to fight a war of annihilation, it is necessary to concentrate limited energy and financial resources on individual or few individual stocks as much as possible. When the market or individual stocks enter the stage of mid-level oscillation, pay attention to selling high and attracting low, amortizing low costs, eliminating the inferior and retaining the superior, and reducing the number of shares held. When the stock index or individual stock enters the sprint stage, it is necessary to gradually shrink the front line, settle the high-profit chips first, and transfer some funds to individual stocks with potential for supplementary growth. At this moment, even if the summit fails, the loss can be minimized because the profit has been locked and the remaining chips are concentrated, so it is convenient to run.

It is difficult to buy strong stocks in the short-term without chasing the rise, then look for those stocks whose stock prices are at a low price in the same sector and are among the top gainers. If the increase is high, it means that the stock has a firm in it. After entering the rising stage, the stock price is continuously raised to complete the goal of being a firm. Or continue to collect chips to achieve the purpose of opening a position. Volumes were high on the day, and the stock’s rise was supported by volume.
At a low price, the increase is ahead, and the volume is enlarged, indicating that the main force’s true intention is to raise the stock price, not to induce more. If there are stocks with high prices and high trading volume, there may be traps, and buying these stocks is more risky.
Observe the turnover rate The turnover
rate refers to the frequency of stock changing hands in the market within a certain period of time, and it is an indicator that reflects the liquidity of the stock.

Calculation method: turnover rate = (trading volume in a certain period of time/total number of shares issued) × 100%.

The low turnover rate indicates that the views of the long and short sides are basically the same, and the stock price generally fluctuates sideways or falls slightly due to sluggish transactions. A high turnover rate shows that there is a big difference between the long and short sides, but as long as the transaction can continue to be active, the stock price will generally show a slight upward trend. The higher the turnover rate, the more active the trading of the stock and the better the liquidity.

Do a short-term view of capital flow

  1. Select the stocks that have released a large amount of stocks at the bottom in recent days (the daily turnover rate is continuously greater than 5%-10%) for follow-up observation.
  2. (5, 10, 20) MA appears in a long arrangement.
  3. After 60 minutes of MACD’s high and dead fork, the volume decreased and the OBV rose steadily in 15 minutes, and the stock price stabilized at 20MA.
  4. In the second hour of the 60-minute MACD golden fork again, Pang Low intervenes in batches.

The inflow of capital means that investors are optimistic about the stock, and there is a greater chance of rising. If the capital flows out, investors are not optimistic about the future trend of the stock, or there has been a certain increase in profit-taking. Combined with the running trend of the stock, the center line looks at the trend.

Look at the volume again (inner disk + outer disk is the transaction volume)

The two data of the inner market and the outer market can generally be used to judge the strength of the buying and selling power. If the number of the outer market is larger than that of the inner market, it indicates that the buyer’s power is stronger. Through the size and ratio of the number of external and internal disks, investors may usually find that there are more active buying orders or more active selling orders, and can often find the movements of the dealers, which is a more effective short-term indicator.

  1. The trading volume helps to determine when the trend will reverse, and the bottom is the price stability and volume contraction.
  2. The daily trading volume of individual stocks continues to exceed 5%, which is a sign that the main force is active.
  3. Individual stocks rose indefinitely after being pulled sideways by heavy volume, which is a sign that the main chips are highly concentrated and controlled.
  4. In the event of a sudden high level, a huge amount of long Yinxian, and the situation is unclear, you must immediately exit the game to prevent a major negative lead to a collapsed decline.

You can only invest in stocks with spare money, so that your mentality is not easily disturbed by the ups and downs of the stock market, so you can maintain a good mentality, observe calmly, and follow the rhythm of the market. If you invest all your funds in the stock market, or even raise money to speculate in stocks, then speculating in stocks will become a big gamble, and it will be difficult to maintain a good attitude. It is normal for stocks to rise and fall. This is the law of the market. If they rise too much, they will fall and adjust, and if they fall too much, they will rebound and rise. To strive not to be overjoyed by the rise and saddened by the fall, this is the most important thing for stock speculators to do.

Also remind that in the stock market, the most taboo things in stock trading are “greed” and “unstable mentality. As the saying goes, if you often walk by the river, you will never get wet shoes. This may be simple in the stock market, but not many people actually do it.

That is, in order to operate well in the stock market, analysis software is only an auxiliary tool. You need to have a good attitude + experience (skills) + luck. With a good attitude, you can calmly judge whether the operation is correct, avoid chasing up and down, and buy It is better to sell accurately, the opportunity will not be less.

 

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