Dealer s stock-picking Money Tips

Category: Money tips Release Date: 2006-06-24

With regard to stock picking, market, circulating a well-known words is called: stock picking like the election of his wife. Of course, this is very comprehensive, but it is, after all, to some extent reflects the importance of stock selection. For most small investors, most of the time the operation is essentially impulsive in nature, disorderly, and blind, intervention stocks are arbitrary large, hearsay, self-righteousness, wishful, reckless follow suit, etc., are common phenomenon. As for the dealer, they have more stringent standards and methods, mainly the following certain conditions.

1, stock prices. Here's share price refers to the absolute concept, because there is no short of our market mechanisms, and only buying the stock after the ship pulled up to make a profit, though sometimes the dealer will throw a high through low-absorption, and deliberately suppressed Xichou or reduce costs, But the main means of profit is still high end. Therefore, in this sense, the intervention stocks prices as low as possible, later pulled more and more space also, of course, also will be more room for profit. Generally speaking, there are roughly corresponds to the relationship between some of the following. Broad market cap, lower 5 yuan less; in the low loss of stock 5 yuan less; growth technology stocks better than 15 yuan; newly-listed shares 10-15 yuan.

Second, Liu Tongpan. This is to assess and determine the value and equity investments in the secondary market price is very important participation targets. Listed companies, the industry is good, good growth, performance quality, distribution capability, Liu Tongpan smaller, equity expansion potential, through continuous Dividend Information, equity expansion, the way to a virtuous cycle to promote the stock price increases, which is making a very good mode of operation. Of course, different market makers, in considering the Liutong Pan, you must also choose according to their own conditions Liutong Pan size, which should be noted that the collection of chips ratio; can deploy their capital in the amount and Kongpan time and capacity; PLAY cycle and chips, and the degree of convertibility and so on.

Third, speculation themes. The use of themes and concepts is a major feature of China's securities market. Almost every day we can see or hear a variety of media, various themes and concepts, what high-tech nano-and what scarce resources, what blue-chip growth, what monopoly industries, what share of the replacement, what is reorganization in isolated newborn, which are making an excuse for the use of shipping. Steps in the bookmakers, the ship is the most crucial point, therefore, the choice of subject matter also essential.

Stock selection in the above conditions, in fact there are some points are worth making can not be ignored, namely, the selected target shares should be no violence in recent years, speculation had stocks generally fell after stocks rose, at least to go through one, two years of adjustment, quiet period, and some time will be longer. The second is whether the selected target stocks making bodies of other potential included, otherwise the dealer will be very fierce between Bo Sha, PLAY will multiply the success of the increasing difficulty, of course, this point should try to avoid the situation