Stock Selection Method: How To Select Stocks In Small And Medium Sized Boards

From the analysis of market characteristics, the stocks of small and medium-sized enterprises are very active.

"Incremental capital intervention" is a candidate standard. This type of stock is displayed on the disk, and the volume is gradually mildly enlarged. The bottom is gradually rising, and the main collection signs are obvious. The stocks that have formed an independent trend may be regarded as the focus of investment. However, incremental capital intervention must be in a moderate state, while the stock price increase can not be too large.

If the share price rises too fast or too high and the volume of shares expands sharply, investors are not easy to catch up.

Because the trend of SME stocks is more active, but the sustainability is not strong.

Investors can choose the current price is not high, and the turnover is more active, short term low absorption high throw the opportunity to invest in more obvious stocks.

The concept is very important to a stock, and it often becomes the stock price.

Concerned about the growth of the company, the company with high growth will have "high growth".

Those so-called innovative stocks are the "new concepts" often mentioned. These innovative factors will ultimately be reflected in the products of enterprises, such as technological innovation, management innovation, market innovation and organizational system innovation.

Innovation is not only the basic functions and specific tools of entrepreneurs, but also the essence of corporate profits.

In the SME board investment, the traditional method of corporate valuation is no longer applicable, and through the evaluation of the enterprise's innovation ability, it can avoid the defects of the financial analysis method, and can better assess the sustainable growth ability of the emerging enterprises.

Innovation evaluation method is the basic method of investment in gem and SME board. From a large number of emerging enterprises, it is found that innovation capability, especially industrial innovation enterprises, will get excess returns.

Which stocks are on the low side?

Although China's stock market has a history of more than ten years, the stock price of a stock has never been completely polarized.

No matter how valuable the blue chip stocks are, they will not be able to continue to rise as long as they reach a certain height. In the absence of a follow up market, the main capital will only fall into the awkward position of self playing and singing.

On the contrary, some performance stocks will not continue to fall after falling to a certain low level, and they will also attract a lot of speculative funds.

The first way to judge is stock price.

At the present stage, the absolute share price is still one of the important factors that affect the stock market.

We must be vigilant for the stock price of small and medium-sized plates with a price above 30 yuan.

For stocks with a stock price between 10 yuan and 20 yuan, and not far from the issue price, they can be regarded as a relatively low price variety, which usually means that there is a certain profit opportunity on the short line, and investors can intervene selectively.

The second criterion is to determine the size of absolute gains.

To make a correct judgement, we need to decide the level and nature of the prevailing market.

In a round of intermediate market, the stock price rose more than 50%, which means that the risk has been condensed and investors should not catch up again.

If it is a super bull market, if the share price rises more than twice, it means that the market is overtaking and has a lot of irrational elements. At this time, the risk of stocks is very high. It is recommended to take wait-and-see measures.

Investors try to choose some stocks that are not very large, but the potential stocks with funds are often able to grasp investment opportunities.

All practical operations need priority in data support, so we can find undervalued stocks by taking price to earnings ratio as a measure.

Usually, under the same conditions, small plate stocks are positioned higher than plate stocks, while small cap stocks are more speculative than the same type stock on the main board.

Therefore, the average price earnings ratio of the SME board should be higher than the average price earnings ratio of the main board.

Please note that the high degree is not unlimited. If the average price earnings ratio of the small and medium board stocks is over estimated, it is bound to face a return of value and investors should be vigilant.

If the average price earnings ratio is less than 35 times, it means there is a good profit opportunity in the short term.