A New Stock Selection Article

In stock trading, stock picking is the premise and foundation of other links.

Take the "N" rule as an example, introduce the understanding, application and Inspiration of the method of stock selection.

The essence of the "N" rule is the concrete application of Dow theory.

Loading the "N" rule

The whole meaning of "N" is: Newproducts, Newmanagement, Newhighs, that is, new products, new management methods, and high share price.

The "N" rule is the comprehensive application of fundamental analysis and technical analysis.

Basic analysis part:

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1. the main business of listed companies is outstanding, sales and profits remain stable and sustained growth, and its industry has made breakthroughs and is in the leading position in the industry.

On this basis, new products will soon be put on the market or have just begun to make profits. New services and marketing have been adopted.

That is to say, choose growth companies instead of traditional, inactive old blue chip stocks.

2., in the past one or two years, the company has a new senior management leader who has adopted a new management method to make a thorough integration of the company.

Looking at the stock selection of top leaders of listed companies, it is rather cumbersome to apply, and the existing leader handover system is not applicable.

Technical analysis part:

Use basic analysis to select investment varieties, and use technical analysis and selection.

In compliance with the above 2 conditions, the stock price of a listed company has been adjusted for seven or eight weeks, even for 15 months, after a period of consolidation. It is a good buy point to get out of the box platform and make a breakthrough.

The key question is: when can we break through?

Focus on institutional level

1. under the same economic environment, the performance of listed companies is good and bad. The institutions that trade in the same stock market are much different, and the level of earnings depends on the level of market leaders' grasp and speculation.

The same leader maintains a relatively stable stock selection style and speculation during his tenure.

For example, we can analyze SSE's portfolio in recent years, specifically analyze their style, and analyze and judge their stocks according to their unique style.

If we can taste the sweetness of them, we should follow the stock of Shenyin and Wanguo as a stock selection method, and then choose the buying and selling timing by means of technical analysis.

We can track 3 or 5 large-scale and powerful investment institutions and experience their styles and follow them.

In the second half of 2.2001 years, the stocks of the southern stock market suffered heavy losses, but the stock they held this year made us sit up and take notice.

Two people are at risk. They have a pivotal position and legendary experience in China's stock market.

Looking at the historical figures of Shenzhen Development (000001) and Lujiazui (600663), we can turn out the data of six or seven years ago, and then analyze the existing portfolio of the southern sector.

O'Neill's thought is an organic whole. Although the timing and method of applying the other 6 principles are different, how to combine the specific circumstances of the stock market in China is the same.

There are many analytical methods in the stock market, usually the technical analysts dismiss the fundamental analysis, and the scholars who value the fundamental analysis also denounce the market speculation.

In fact, this antagonistic thought is not beneficial to actual pactions. We apply the open mind to learn from the merits of others.

Is it possible to think that entering the stock market is to get profits? To gain profits, we must have experience, so we can learn from the experience of successful people, or even accumulate experience in practice.

60% of O'Neill's methods are fundamental analysis, and the rest is technical analysis.

O'Neill is one of the few people who can combine basic analysis and technical analysis with very good investment (or speculation) results.

Dow theorists Victor also mentioned O'Neill's methods many times, and John Murphy, who combined many technical analysis with remarkable achievements, also recognized the importance of fundamental analysis.

Loading the "I" rule

"I" represents whether the stock has powerful shareholders and makers.

Oneill believes that the choice of stocks with institutional investors is best, and it is best that these institutional investors have recently performed more than the market average.

There are many differences between Shanghai and Shenzhen stock markets and Wall Street stock markets. We need to treat them differently.

O'Neill classifies mutual funds, companies' retirement funds, insurance companies, big investment advisers, hedge funds, trust departments of banks, charitable and educational institutions of relevant governments as market institutional investors, namely, makers, excluding securities companies and research institutions.

And we put them all in the scope of institutions, and will often say that a certain department, such as the Southern Department, Haitong system, Guoxin system, etc., our market collectively referred to several related agencies as departments.