When investing in stocks, the beta coefficient is used to calculate the reasonable risk return rate that investors can expect from a stock. The calculation formula is: reasonable return rate of individual stocks = risk-free return rate+β * (overall return rate of stock market-risk-free return rate).
Users can pay attention to different indicators when investing in stocks, and at the same time master the ability to analyze the stock price trend, then buy at a position where the stock price has been relatively low, and then sell it for profit after the stock price rises. It is worth noting that there is a loss in investing in stocks.
Usually, to invest in a stock, you need to know its stock price trend, whether the indicators are normal, the industry in which the listed company is located, the company's financial report, etc. After buying, it is best to set a take profit price and a stop loss price. Generally, when the stock price rises to the take-profit price, it can be sold for profit. If the stock price falls, sell it at a stop-loss price to avoid further losses.