Current stock picking operation strategy Money Tips

Category: Money tips Release Date: 2006-07-09

Yesterday we talked about the nature of the current position of the broad market: When the stock break through new highs, which funds have been trying to get out in time (departure place), then the medium-term stock is bound to build the top suspects. It is this current situation.

Money propelling the stock, when the boundless innovation and high, show that indicators of stock must have been repeatedly lift used to swap large inventory of places, such behavior is obviously not by the individual, nor when the normal organizational behavior, only the super market main forces would bring about such capabilities.

We do not look at how the super-lift the main index shares, but we need to monitor the main force of the impact of behavior on the market's future; the past, we have also been discussed, intermediate Quotes are generally complex building roof top, the time span is also needed several month, whether it is building of several top, but eventually fell to adjust.

Some friends may ask, since it has been aware of broad market is currently building roof, the medium-term direction of stock index was down, if I do short-term possible? The answer is yes, just build the top stock-picking strategy is somewhat different phase. Rising phase of the bull market in the broader market, if you are involved in stock selection, or there were flaws in the broader market will rise to make up your mistakes, but in building top-stage, once the mistake, you will not have so good luck, it should be built to comply with the top stage of stock selection the following "commandments":

1) Select plate hot spots: the higher the degree of market recognition of the plate, the longer the duration is not like stocks go up or down with the arbitrariness;

2) Select plate in the leading stocks: Leading shares rose big and then drop a small adjustment, the market a hot phenomenon in the most secure in the hot plate;

3) the absolute low price stocks: Because the top stage was built, many stock prices have been pushed up on the days, it is absolutely low-value stocks are more speculative in hot advantages.

But when the tape at the top has been established, building roof has been completed, soon falling, no matter what hot plate should be avoided, the best way is to short positions!