Category: Money tips Release Date: 2006-02-04
Conversion is an initiative of some sort of relief strategy, if used properly, can effectively reduce costs, increase opportunities for some sort of relief. But the convertible is also a risk of some sort of relief for large practices, if the mistake will be paid out once the operation of his wife, another soldier off. Therefore, when investors in the convertible to be very careful to grasp the practical application of the laws of convertible.
First, stay small for large. Small-cap stocks due to restructuring costs, low capital more easily because the dealer is selected Kongpan. Small Unit so that more of the living, are often stronger than the broader market trend. Therefore, the small-cap stocks outperform the general trend and the preferred shares of the hands of stagflation species.
Second, to stay low for a high. Generally easily overlooked by the market cap, lower the value of investments is often underestimated by the market, but also because of an absolute cap, lower-bit low, and further down space is limited, with less risk. If it is deep-down from a high level cap, lower down, because the files from the remote lock-intensive areas, has a certain potential for Zhang Sheng. The price of high-priced shares in itself means that high-risk, so that high-priced stocks to face greater pressure to adjust, so when the incumbent, swap out the high-priced shares, retaining cap, lower.
Third, stay new for old. New shares, sub-IPO has not been due to expansion, Liu Tongpan bias, Yung was the main Kongpan. And time to market not long ago, have not been crazy speculation over the sub-shares, stuck on stall plate light. Together with sub-listing of shares has just raised large sums of cash, often with a new profit growth point. These factors are prone to hype the mainstream funds warm.
Fourth, stay strong for the weak. Weak stock characteristics: If a large-tune with the broader market declined on weak stocks, amplitude often beat the market; If a large rebound, the weak stocks follow broader market rebound even if its intensity is also a larger plate weak. Therefore, investors soon found himself in the hands of such weak stock holdings, whether profitable or quilt should be a timely clearance, elect a strong unit. So as to effectively ensure the utilization of funds.
5, left Zhuanggu for no Zhuanggu. There Zhuanggu refers to the main intervention stocks, the main intervention is not by virtue of solid gold to the market's ups and downs, constantly pushing high-priced, the stock has shown strong Hengqiang trend. No Zhuanggu care due to lack of main funds, which are mostly small retail investors on the inside for bankruptcy, and if the holders of such shares, and other individual investors can only struggling with the.
6, stay for the new and old Zhuang Gu Zhuang Gu. Because the old Zhuang Gu regardless of whether there had been a huge pulled up before, or whether there is a profit of time and space, as long as the time cost of suppression in the long run, the old Zhuanggu very easy way How do you select fled, taking into account, therefore, the old Zhuang Gu space and increased intensity of the rise in both doubtful. The new Zhuanggu refers to the time of the main intervention stocks did not exceed 1 year. As the new money has just been involved in, its explosive power is often more than the old Zhuang Gu.
7, leaving the bottom of the heavy volume shares of stock for the bottom of the immeasurable. Change of the incumbent, can be up, and rose fast to. Where in the bottom of the heavy volume when in the following broad market fluctuations may underperform the overall trend, even if the dealer will be selected, the main force of the Provisional Jiancang before it will be crushed by accumulation. If you already have the stocks in the bottom of the village is not a big bang, only show that smoking has long been the main force of a belly cargo, is thinking of how to distribute the future increase in space can be imagined. Therefore, the convertible as far as possible attention to the bottom of the heavy volume when the unit.
8, leaving the mainstream plate stock for unpopular stocks. Some popular stocks, only a few cents a day where fluctuations in all-day transactions scarce, if there is in the hands of individual stocks, it should throw it as soon as possible, change into the plate, but now belongs to the mainstream or not big stocks.
9, leaving the potential subject matter shares for shares of themes clear. The market often send a hazy subject, as to whether it is true does not matter, as long as the investing public can get recognition, stock prices often gratifying performance. However, once the clear theme, speculation will be declared over. Therefore, the swap must pay attention to select some stocks potentially obscure subject matter, do not have to select good stocks have been fulfilled.
