How To Catch Strong Stocks In Stock Market With Turnover Rate?

We studied the daily maximum of a stock.

So-called day

The percentage of capital gains.

Daily turnover is another form of daily volume.

The turnover rate of each stock varies with the daily turnover of each day.

The daily turnover rate reflects the market sentiment of a certain stock, so it is a kind of market popularity index, which shows that the chips in the market will be traded in a trading day.

Under normal circumstances, the higher turnover rate means that the stock is more active, whereas on the contrary, the stock is sluggish and there are few market favourites. The most frequently traded stocks are popular stocks, themes or stocks, so they are the best targets for short-term or phased operations.

The daily turnover rate is the same as the 40 day average turnover volume, which is a scientific quantification of the volume of daily turnover. This helps us avoid the previous understanding of the "quantity" mistake. In our daily stock price chart, the volume is expressed by the column diagram, and the corresponding scale is automatically adjusted by the computer. If we see a longer turnover volume column, we think the stock is "free volume", and if we do not study it carefully, we may mistake the small quantity for a large quantity.

In addition, another common mistake is to regard the general volume as a true volume.

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For example, Shenzhen Development (000001, October 23, 2001) has a daily turnover of 28 million 820 thousand shares, and the volume of daily turnover has been enlarged, but the volume is only a general volume. In such a long trend, such daily turnover is too common, especially in the strong rising stage.

Although the volume of daily turnover in October 23rd has been magnified, there is not much difference between the total share capital and the total circulation capital of 1 billion 400 million shares.

Because if we convert the volume of turnover on the day of development to the turnover rate, the turnover rate on the day of deep development is only less than 1.5%. In October 23rd, in the sharp rise of Shenzhen and Shanghai stock market, there were not more than 100 stocks with a daily turnover of more than 5%. Therefore, for a super large cap, the trend of the day is not much to be desired.

The larger volume on that day did not provide sufficient technical evidence to show that deep development will be or is going strong. Therefore, we still could not judge the trend of the future market. We should continue to wait and wait, instead of rushing to make a sales decision.

Through the long-term tracking and observation of the daily turnover rate of more than 1000 stocks in Shenzhen Shanghai market, we find that the daily turnover rate of most stocks is between 1%-25% (excluding the IPO on the first three days before listing), and the daily turnover rate of a large number of stocks is concentrated between 1%-20%, and about 70% of the stock's daily turnover rate is less than 3%.

That is to say, 3% is an important demarcation line, and the turnover rate below 3% is very common. It usually indicates that there is no greater strength in the operation of the funds.

When the turnover rate of a stock is between 3%-7%, the stock has entered a relatively active state, which should attract our attention.

The daily turnover rate of 7%-10% often appears in strong stocks, which belongs to the stock price.

The trend is highly active. Generally speaking, these stocks are or are widely concerned about the market.

If the stocks with daily turnover of 10%-15% are not in the historical high price area or the middle and long term peak period, it means the strong operation of the Zhuang stocks. If there is a large callback, the 1/3 rule or the 1/10 rule in the callback process to meet the minimum daily turnover or volume will consider appropriate intervention. When a stock has a turnover rate of more than 15%, if the stock can be operated near the intensive trading area, it may mean that the stock market has a potential upward energy, which is the technical characteristic of the super strong stocks, so that the market will have the chance to become the biggest black horse in the market.

The following table roughly outlines the relationship between the daily turnover rate and the stock status and trend, describes the relationship between the strong stock and the daily turnover rate, and the corresponding investment and sales strategy, so that we can have a better understanding of the turnover rate and use the turnover rate to guide the operation in real time. In order to facilitate investors to better understand the quintessence of the turnover rate, let us uncover the mystery of the turnover rate through actual combat examples.