How To Use Public Information To Select Stocks

Valuation

Generally speaking, there are strong R & D institutions under the big institutions.

At present, the authoritative securities media or brokerage research institute or fund company will provide some research reports, which has greatly reduced the scope of stock selection, but not all companies mentioned in the research report can be invested. The following is the method of valuation and stock selection that author has summarized for many years.

First of all, try to choose industries that you are familiar with or capable of understanding.

Mentioned in the Research Report

Second, do not believe the future price forecast in the research report.

The research report may put forward the future pricing of the two tier market of the listed company in the last part. This prediction is based on the prediction of the performance and price earnings ratio, and the forecast of the P / E ratio is generally only a simple calculation of the average value of the industry.

Third, we should treat growth objectively.

Performance prediction is the key. Considering the subjective factors that the researcher may have, investors should reconfirm every specific condition and the latest information by themselves until they are sufficiently confident.

Fourth, research industry.

When the results of the basic recognition are predicted, investors should also study the industry of the company in turn. The purpose is still to verify the hypothesis that the price of the product may be large in the research report, which can be done through the Internet.

Fifth, we need to valuate the selected stocks.

Do not trust the valuations of the fellows. Investors must make valuations based on future performance and minimize risks as far as possible.

Sixth, volume selection.

Trading volume is not deceptive. The size of trading volume is directly proportional to the rise and fall of stock prices. This view is sometimes correct, but in many cases it is one-sided or even totally wrong.

In fact, turnover will also be deceiving, and it is often the best way to set traps for the main force. Those who know a lot about price and price analysis but do not understand it will get hooked.

In the actual combat, the author summed up the following experience: the key to the change of turnover is the trend, and the trend is gold. The so-called "sky high price, land price" is only relative to a certain period of time. The specific content needs to see the state of the disk and its location at that time, in order to really determine the possible future development trend.

In the trend of stock price, there are many changes in quantity. The most difficult thing to judge is a limit. How much volume is calculated and how much shrinkage is calculated, there is actually no law to follow.

Most of the time, it is only a "trend", that is, the trend of volume and the trend of shrinkage. This trend comes from the overall judgement of the trend of the previous stage and the market changes at that time, and the market psychological changes that are hard to understand.

Finally, we must observe the disk and find a reasonable buying point.

Once the investment decision is made, the trading situation in the trading center should be understood, especially whether the main force or the main force in the market is in the current situation. In the end, a reasonable buying point should be found and the relative high position should be avoided.

In short, buying and selling stocks is an investment rather than gambling. A stock judged according to the above method, if its target price is 9 yuan, the entry price of more than 8 yuan is obviously suspected of gambling.

Screening stock is a basic skill for investors. It is necessary to constantly accumulate experience and Research on the industry, so that we can get started slowly.