Category: Money tips Release Date: 2006-01-05
After 17 years of stock market education, all investors know that stocks there is the risk of losing money, but looking at running away with the index number of investors or, as Quan-like increase. Statistics show that this year, the Shanghai and Shenzhen A-share accounts has more than 9 million. However, even in a bull market, investment market or a few profits, the new investors in this situation, how to stock selection strategies in order to overcome the market?
The value of an investment in the first move is the most traditional way
More than 100 years, people create a variety of stock-picking approach, but the value of investing theory is the most traditional way to invest on Wall Street in recent years has also been recognized by our investors. The basic idea of value investing is through fundamental analysis, then the use of price-earnings ratio, book value and some other basic indicators, to find undervalued stocks, the theory emphasizes the smart investor is always lower than the intrinsic value of the company's own price to buy shares. The contemporary investment guru Warren Buffett, value investing became the world's most successful practitioners of his personal investment in 46 years the average annual compounded rate is 23.5%, creating personal wealth from 100 dollars to 36 billion U.S. dollars a miracle . Buffett later said, "safety margin" is the most important investment in a few words, to be sure you buy the stock is far greater than the value of your investment made in the stock market. Well-known professional investors Linyuan, in talking about his investment experience, also said in 2003, when Wuliangye (Quote of information) is only 9 per share, about 20 times earnings, the market at that time, the average price-earnings ratio is 40 times. "Such a good brand name companies, the stock fell to such a cheap price, I think that a great opportunity." Linyuan successful investments from stocks to see the multi-value investment philosophy through it.
No. 2 recruit high-growth stocks are increasingly popular choices
Choose high-growth stocks, the method at home and abroad in recent years, more and more popular, it is concerned that the company's future profits, high growth, while the price-earnings ratio and other traditional criteria for value judgments seem less important. There are two sets of simple figures, let us look at the charm of growth stocks: a year to maintain 30% growth in business, 10 years after the original 14.7 times profit. Suppose we buy at 30 times earnings, 10 years later, and then sold 20 times earnings, then earnings 9.21 times the original investment each year nearly one-fold profit; another one to keep an annual growth of 5% of the company , 10 years after the profit is 1.63 times the original. Suppose we did with the 10 times earnings to buy down, 10 years later that the use of a very high price-earnings ratio of 20 times to sell, we are only 3.2 times earnings. This year, many fund companies also put this "growth" concept applied to the investments to go through the multi-enterprise research has the potential to tap the high-growth stocks.
No. 3 strokes selected industry leaders worry effort
Since last year, QFII's stock-picking ideas have been generally recognized by the market, from its Shigekura stock - Shandong Pharmaceutical Glass, Fuyao, Nanning Sugar, Conch Cement, Baosteel, CIMC, Rebecca and other firms, no matter Baosteel on behalf of large capitalization stocks, or small-cap stocks on behalf of Rebecca, were all have one thing in common, they are inside the industry leading enterprises. Leading strategy with us, "we must remember that" in the East of thinking coincide. Management of construction investment and securities brokerage CITIC deputy general manager Zhang Xin Fan Headquarters, in a recent lecture in a number of financial management, but also guide the selection of new investors to stock picking on the hot industry leading enterprises. He pointed out that the stock market for the novice, priority should be to elect our own good companies around the stock, "because a lot of things around us are very determined, in particular, industry leaders should be elected, do not select row after 56." As to why to elect the industry's most outstanding enterprises, Zhang Xin-fan said, "China has emerged strong Hengqiang trend, advantages corporate because management quality, brand excellence, will continue to move forward." "For example, a well-known British fund managers, Taub said, I invest in a very simple, that is, the British could do the world's best a clean sweep of those companies on the list. in his portfolio, sorting were 35 cigarettes, Scotch whiskey, Unilever, Heathrow Airport and Prudential insurance companies, this combination allowed him to turn a 54-fold within 25 years. "
No. 4 strokes are widely used technical analysis stock picking
Technical analysis method are statistical areas, can not be predicted Quotes of. Some people commented on technical analysis stock picking method: "It just gives the probability of an analysis, that is, technical indicators can only be issued to us by trading signals is not possible in the end up or down to tell us what position. Technical analysis is not a panacea , but it is absolutely not do without. "technical analysis is based on three assumptions: first, market behavior and all-encompassing information; Secondly, the price changes along the trend; Finally, history will repeat itself. Under the above assumptions, to technical analysis methods of stock selection that commonly do not have too much concern about the company's operations, financial condition and other fundamentals, but rather the use of technical analysis theory or technical analysis indicators, through their choice of chart analysis shares. In addition, the method is based on stock price volatility, that is, no matter how much the value of the stock, the stock price there is always cyclical fluctuations, technical analysis stock picking is to look for oversold stocks to capture profit opportunities. The use of technical analysis traders, Gann and Elliott are two of the master can not be unknown. Gann in his book had a lot of statistical work, including the most likely to peak a few months, a few months most likely to hit the bottom, each successive up or down will last many months, these statistics appears to be stupid live, but with the accumulation of large amounts of data, many of the regularity of things that easily presents. Although such statistics can not guarantee that you are victorious, but at least allows you stood in the side of the probability of the event.
Section 5 strokes following the first cap, lower the eradication of 5 yuan
These are the more mature stock selection theory, whether new or old shareholders have a reference value to shareholders, but in a bull market, there are some alternative methods that can help investors to open stock-picking ideas. Since the current round of Quotes, the major market index plate Lunzhang Diego to promote a new high last year, the cap, lower also start to soar Gradually, unary, binary, ternary stock destroyed by the market, the market seems intent to eliminate 5 yuan The following cap, lower. Therefore, it was suggested first, and then eliminate the eradication of 5 yuan to 10 yuan shares fanatical slogans. However, experts pointed out that cap, lower-earning effect of a number of small individual investors to hold, in the specific operations, do not have to hold the center line point of view, "after all, cap, lower cap, lower, of course, there are low-cost reasons, no fundamentals supporting things will not last long, and can only be short-term treatment, short-term speculation bold cap, lower is desirable. "
No. 6 recruit high-priced stocks to open up space for
High-priced stocks is a bull market benchmark, in the big bull market, the high-priced stocks hit a new record seems to be inevitable. During the wave of the bull market in 2000 was an important event is the emergence of a number of hundred shares. Quotes of the current round, Maotai, Chihong Zinc and Germanium, Hudong Heavy Machinery, Commodity City, and other firms have stand on the hundred mark, since the annual report of the allocation of ex-dividend and other reasons, stock prices fell below 100 yuan, but trend, again break hundred only matter of time. The future, the domestic market and the direction of international standards is clear, which means that the gap between the stock will become increasingly large and cents or even a fraction of the stock will appear the same, there a few hundred thousand yuan or even the stock, it will not people to be surprised.
