Stock exchange refers to the replacement of shares held. When a stock falls or reaches the expected return, it can be exchanged, and the held stock can be sold before buying other stocks. What principles should be followed in stock exchange? The following are the stock trading principles compiled by Bian Xiao, hoping to help everyone.
What is the principle of stock trading?
1 exchange small for large
Small-cap stocks are easy to be selected and controlled by more makers because of the low cost of capital restructuring. So that small-cap stocks are more active, often stronger than the broader market. Therefore, small-cap stocks are the first choice to outperform the trend and stagflation stocks.
2 Keep low and get high
Low-priced stocks are generally easily ignored by the market, and the investment value is often underestimated by the market. Moreover, low-priced stocks have limited room for further decline and low risk because of their low absolute positions. If it is a low-priced stock that has fallen from a high position, it has a certain upward potential because it is far away from the densely populated area. The price of high-priced stocks means high risk, which makes high-priced stocks face greater adjustment pressure. Therefore, when changing stocks, we should change high-priced stocks and keep low-priced stocks.
Keep the new for the old.
Because the new shares and sub-new shares have not been expanded, the circulation is on the high side and is controlled by the main force. Moreover, the sub-new shares that have not been listed for a long time and have not been madly hyped are light in the upper file. In addition, new shares have just been listed and raised a lot of cash, which often has new profit growth points. These factors are easy to arouse the enthusiasm of mainstream funds.
4 Stay strong and change the weak.
Characteristics of weak stocks: the market adjustment, weak stocks fall with the market, often exceeding the market; If the market rebounds, the weak stocks will be weaker than the market even if they follow the market rebound. Therefore, once investors find themselves holding such weak stocks, they should clear their positions in time and choose strong stocks, whether they are quilt cover or profit. Only in this way can the utilization rate of funds be effectively guaranteed.
5. Keep Zhuang shares, not Zhuang shares.
Holding shares refers to the stocks in which the main force is involved. The main players involved will not fluctuate greatly in the strong market of gold, but will continue to push up the price, and the stock price will show a trend of strong before and then strong. Due to the lack of main funds, most non-manor stocks are supported by small retail investors. If you own this stock, you can only support it with other retail investors.
How to exchange shares?
1, quantity first principle
That is, leave the heavy stocks at the bottom and replace the unlimited stocks at the bottom. Because any stock with unlimited bottom is generally weaker than the broader market, even if it is selected by the main force in the future, the main force will shoot it down first, then open a position and refinance. Even if the stock has settled in the main force, if the bottom is not heavy, it means that the main force has absorbed enough chips, which is likely to be distributed when it rebounds, and there is not much room for future growth.
2. The principle of active stock trading.
Some stocks have few transactions throughout the day, and the turnover rate is very low, fluctuating only a few cents a day. These are typical unpopular stocks. If investors have such stocks, they should sell them as soon as possible and replace them with stocks that are now in the mainstream sector, with active trading and high market attention, but with little increase. It is a point that must be understood in how to exchange shares in actual combat.
3. Keep the principle of low to high
Low-priced stocks have several advantages. First, they are easily ignored by the market, and the investment value is often underestimated by the market. Second, due to the low absolute price, there is relatively limited room for low-priced stocks to fall further, especially in the A-share market. Due to the lack of exit mechanism, few listed companies go bankrupt, so the risk of low-priced stocks is low. If it is a low-priced stock that has fallen from a high position, it is far from the densely populated area of the upper file and has certain rising potential. However, the price of high-priced stocks itself means high risk and faces greater adjustment pressure. Therefore, when changing stocks, we should change high-priced stocks and keep low-priced stocks.
4. discard the old and save the new.
Recently, due to the continuous market crash, the premium of some new shares is small or even close to the issue price, and the valuation is reasonable. However, these new shares and sub-new shares have not been expanded, and the circulation is small, so it is more likely that the main funds will control the market. Therefore, some sub-new shares, which have not been listed for a long time and have not been hyped crazily, are fried very lightly, which is easy to stimulate the enthusiasm of mainstream funds for speculation. This is the key principle of how to exchange shares in actual combat.
What are some effective principles commonly used in stock buying?
Many investors buy stocks casually. As long as there is a stock reviewer's recommendation or a good rumor, someone will buy it. For these friends, buying stocks is more casual than buying vegetables, and buying vegetables is more selective. The random result can be imagined. Most of them are sleepy after buying, and then take them home to sleep.
If you can master some effective principles and strictly follow them when buying stocks, you can greatly reduce mistakes and improve the chances of profit. Here are some effective buying principles.
1. Trend principle
Before preparing to buy stocks, we must first have a clear judgment on the running trend of the market. Generally speaking, most stocks follow the trend of the market. When the market is on the rise, it is easier to make a profit by buying stocks, and buying at the top is like pulling a tooth out of a tiger's mouth. It is difficult to survive in the downward trend, and there are not many buying opportunities in the market. We should also make an investment strategy according to our own financial strength, whether to prepare for medium-and long-term investment or short-term speculation, so as to clarify our own operational behavior and be targeted. The selected stocks should also be strong stocks in an upward trend.
2. Batch principle
In the absence of full assurance, investors can buy in batches and in dispersion, which can greatly reduce the risk of buying. However, it is not advisable to buy too many types of stocks in a decentralized manner, generally within 5 stocks. In addition, buying in batches should be implemented in a planned way according to your own investment strategy and capital situation.
3. The underlying principle
The best time to buy stocks in the medium and long term should be in the bottom area or in the early stage when the stock price has just broken through the bottom. It should be said that this is the least risky time. Although there are opportunities for short-term operation every day, we should try to take into account the changes in short-term bottom and short-term trend, fast-forward and fast-out, and the amount of funds invested should not be too large.
4. Risk principle
The stock market is a high-risk and high-yield investment place. It can be said that risks are everywhere in the stock market and there is no way to completely avoid them. As an investor, we should always have a sense of risk and minimize the risk as much as possible, and the timing of buying stocks is the first and most important step to control the risk. When buying stocks, we should not only consider the trend of the broader market, but also pay attention to whether the stocks we buy have a large room for growth or decline, where are the resistance levels of the upper gear and the support levels of the lower gear, and what are the reasons for buying? What should I do if I don't go up and fall after buying it? Wait, these factors should be clearly understood when buying stocks, so as to reduce risks as much as possible.
5. Strong principle
"The strong will always be strong and the weak will always be weak", which is an important law in the stock investment market. This law will guide us to buy stocks. According to this principle, we should participate more in the strong market and invest less or not in the weak market. Between stocks in the same sector or at the same price or stocks that we have chosen to buy, we should buy strong stocks and leading stocks, not weak stocks or stocks that we think will constitute prices and have lower prices.