Category: Money Tips Date: 2006-03-14
Stock picking ideas and methods of operation or operations in accordance with the different habits differ. In general, long-term fundamentals, fried, fried midline concepts, technology, short-term speculation. Of course, the core of which is accurate and timely manner to seize the opportunity to benefit from rising stock prices.
In general, large organizations have a huge R & D team, can cover a large number of stock research. Ordinary investors are generally one-man operations, to long-term follow thousands of listed companies is undoubtedly the fantasy, so the average investor can only choose one of the few companies to operate the stock. Advantage of individual investors is not a profit target, capital repayment on their own without pressure, so you can be patient to carry out stock options, rather than due to changes in market conditions and make irrational decisions.
I learned from many years of practice, summed up stock picking investment in the ten steps to exchange with friends, for friends to discuss.
Step one, target stocks search. The press or the securities business department will provide a number of research reports, which referred to the industry or the stock may prompt us to pick a few stocks; they are familiar with or engaged in the industry is also a choice of targets; radio and television programs will inspire some companies mentioned the Central Standing Committee some stock-picking ideas; daily life will be prompted some stocks; also according to individual stocks of technical graphics Search for stocks, ... ....
Step 2, target stocks understanding. Is now more convenient access to information, as long as the network on the collection, listed companies can be both positive and negative information to have a general grasp. If satisfied with the company's continued analysis, are not satisfied with the throw away bin.
Step 3, research company in which business conditions. When the company after the basic accreditation, but also should look at the company's industry, mainly in the development of the industry space is stable, increasing or decreasing status, whether they are national policies to encourage or restrictions. If the industry is subject to state regulation should be more carefully. The intensity of competition in the industry and the profit model should be some understanding.
Step 4, the company development strategies and investment project analysis. Usually in the company's quarterly, semi-annual report, annual reports have reflected carefully to see if we can have an initial understanding. Of course, to do some analysis and look at the company's development strategy and the feasibility of investment projects.
Step 5, analyze the company's financial position. The financial analysis based on individual ability, the company's financial statements analysis, in general, the more fully this part of the study the better. If you do not have enough financial knowledge can be a simple view. But to note that if insufficient capacity of industry analysis, financial analysis capabilities is not enough it is best not to carry out long-term investment holdings. If you do not need to be shortened in-depth financial analysis, as long as you can ensure that companies do not withdraw from the market.
Step 6, target specificity analysis of the stock. The company with the same type of listed companies compared to see how differences among them, the company's prominent characteristics are those. The stability of long-term look at corporate profits, the concept of the center line to see the company's theme of the unique nature of short-term option is suitable for both good and bad companies.
Step 7, the composition of the stock pool. Elected by a few steps in front of the stock composition of the individual stock portfolio, as an alternative goal of stock trading, which can be 5, 10, 30, in their personal habits and amount of money invested, depending on industry and geography to be dispersed. May be occasional or regular replacement of these stocks. Study the possible high and low price of each stock.
Step 8, analyze broader market conditions, establish the operating cycle. Analysis of the current stock market in the CBBC deer at that stage, the operation of the market characteristics, market development and changes in the main line and so on. To establish the duration of the operation, is the long-term access, or short-term speculation and short-term changes to avoid the midline, midline become long-term, contribute to long-term change.
Step 9, individual stocks technical analysis. Based on the analysis of the broad market, from the stock option pool 1,2-technical analysis of stocks, combined with disk observation, looking for a reasonable timing. Especially on the main disk, or whether the main current situation and make broad judgments, if the ongoing short-term operation, it is necessary to do some of the main style of the necessary understanding. At the same time to avoid buying in a relatively high.
Step 10, set stop loss points and profit targets. In buying the stock before the habit should be based on the volatility of the stock set stop-loss point, for example, how much can be set down by the selling, buying up a few days after the sell is not so. Stop price could be increased with the rise in stock prices, but not with the decline in stock prices lower. Similarly, to rough estimate of the profit targets.
More than 10 steps is just a rough situation, not necessarily in strict accordance with the order to do specific practices vary.
In short, the stock selection process is deterministic by the uncertain process of change sexual orientation, as full of flowers and thorns walking in the tree-lined road, picking at the same time enjoy the beautiful flowers that form a bouquet of flowers, the gift for your family , along with enjoying the pleasure and happiness.
