Stock selection check list:
Fundamental analysis + entry and exit techniques
Fundamental analysis
- Is the theme an active sector?
- Is the industry heading in a new direction?
- High-risk stocks or low-risk stocks?
Low-risk - industry leaders, stable valuation, stable financial statements
High-risk - recent good performance, potential for speculative trading, heading in a new direction, turning losses into profits - Carefully read financial statements and compare horizontally within the industry.
- Have you estimated the valuation?
- Pay attention to recent economic fundamentals. Understand the linkage between sectors and industries.
Entry and exit techniques
- Do not underestimate the power of financial reports. +—10% positive or negative news. Remember the sensitive period before and after the financial report, which may be a turning point.
- Do not overestimate the initiative of state-owned enterprises. Do not overestimate the shamelessness of private enterprises.
- Have you observed the supporting stocks for more than 3 days? Have you studied the business? Have you read recent announcements? Have you researched the shareholders and bosses? Have you analyzed the financial reports?
- Have you consulted and searched?
- Are you prepared for the ups and downs?
- How long do you plan to hold?
- Ask yourself, are you buying based on data or emotions?
Advanced techniques
- Evaluate the mindset of stock manipulators through trading data.
Lessons
- For high-risk stocks, avoid stepping on landmines in the financial report area. (The tragedy of leading stocks)
- Cut losses quickly. Don't wait for others to help you.
- Do not negate logic based on one operation. This is a long-term unemployment.
- When you haven't seen the situation clearly, let the bullets fly for a while.
- The timeliness of information is very important.