Category: Money tips Release Date: 2007-07-15
Many investors may find it strange that stocks to look at technical indicators, K-line, shape and so on, robust type of investors will depend on the financial situation of listed companies, shareholders and business advantage, profit growth and so on. So, this space is What are they?
Investment in the stock market space in general can be divided into two kinds, one is the stock price of space to run, and the other is the industry's growth bringing the investment value of room for improvement.
Can often hear the shareholders said: "The decline in the stock was not much room, so bought." In fact, this view is wrong, stocks fell more room for large, should not be a reason to buy those stocks have room to rise, is our goal. So, what kind of stocks are up space?
In the stock price of space to run, investors begin to study them from the fares of the rhythm. If the stocks increase in the rhythm is very single, is a smooth linear rise, but not conducive to the sustainability of the stock higher. If the rise in stocks is to keep the twists and turns up the rhythm, half-way continuous adjustment of the emergence of some strong shocks Quotes on the contrary, beneficial Stock Quotes sustainable development;
Followed by the quantity can be judged on, many investors mistakenly believe that Zhang Sheng Quotes in the volume to put the bigger the better, this is not correct. Anything should have a degree, if the amount can be premature or over-amplification, it will cause excessive consumption of upside momentum, the result is likely to cause Stock Quotes difficult to sustain. On the contrary, if the volume of moderate amplification, the amount will not be able to over-consumption, stocks still have upside potential, market outlook. Therefore, the ideal contribution, is having a launch early sustained a moderate amount of amplification, but with a normal increase in channel Quotes after the calorimeter has decreased slightly, and keep a long time;
Finally, from the hot to the entire role of the market to analyze, cohesive section leader and the leader is Zhang Sheng Quotes of the engine, in a sense, we can say what kind of leading shares, there is what kind of rose Quotes. All those with the potential to develop in depth, there is a large-scale mainstream appeal and ease of capital in and out of the leading stocks, tend to have the potential to continue to rise, thus have more room to rise.
In addition to stock up space outside the industry to bring growth to enhance the investment value of space is also noteworthy, and this is the foundation to support stock prices take a good long-term conditions. For value investors, although with a wide variety of valuation system, and are inseparable from the industry's imagination this key element. Because only the industry continued to expand the space to be able to provide the enterprises within the industry a growing share of the cake, was awarded a fast-growing business of space. For a relatively limited space of the industry, the equivalent share of the same cake, then business growth can only snatch a share of other corporate pie and eventually rise to phenomena such as price wars, so that business growth is difficult to sustain , while the price increase would also be difficult.
The industry room to grow with the industry life cycle in which is closely related to the industry life cycle in which the location, condition or determine the survival and development of enterprises. For example: car born before Europe and the United States was once the carriage manufacturing how brilliant, but now, even the auto industry have entered a stable period of the life cycle of the. This shows that, if an industry has entered a recession, then the companies belong to this industry, no matter how strong their assets, and management capabilities however strong, can not escape the fate of small business space. In addition, industry products in the market demand has also affected the industry, space, Suddenly, a shortage of products, the industry's most susceptible to dark horse.
In short, investors need to choose the space industry, the direction of investment, through the pricing of space to choose to buy time, which is to look at the most basic way of space stocks. (Big time investment)
