Stock Market Outlook: Are There Any Short Term Investment Opportunities For "Bad Stocks"?

After learning about the "bad news", some investors, especially the new investors, have the first reaction: "bad news" will have adverse effects on the stock price trend of related companies. Observe whether there are short term investment opportunities in "bad stocks". If there is no chance, choose to sell or abandon the warehouse. If you have the chance, you can buy it all or buy it right away.

However, after a period of time, if investors look back at these "bad stocks" again, they may find that many "bad stocks" have gone even stronger after the "bad profits" announcement. Individual stock It has also won the index, and some have even become the "hot stocks".

For sudden "bad news", investors should pay attention to these aspects.

The "bad news" issued by listed companies is full of "bad news". There are definite "bad profits". For example, there are serious problems in production and operation for a long time, resulting in the continuous decline of business performance, and so on. There are also sudden "bad profits", such as disasters and other reasons, which lead to significant losses for enterprises.

There are both real "bad profits" that contain substantive content, and false "bad profits" that only seem very frightening. In this regard, investors must remain sober minded and decide after analyzing the nature of "bad profits". (can refer to the August 13th article of stock school "how to deal with the sudden news of stocks")

Generally speaking, any bad news will have different effects on the share price of the listed company, but this effect is somewhat delayed in advance. Therefore, when investors encounter "bad" news, we need to focus on whether the stock price has responded ahead of time before the "bad" announcement.

Such as " Bad profit "Before the announcement, under the relatively stable market and other stock movements, the" bearish share "has seen a certain degree of decline, which has already reflected the influence of" bad profits "on the stock price in advance, and there is no need for the investors to worry too much about the" bad news "announced in this case.

For example, before the announcement of "bad profits", the "normal" stock market has not fallen. Generally speaking, there will be a lag reaction after the announcement of "bad profits", and investors need to be vigilant when this happens.

If the "bad" is released before and after the announcement Price of stock At the relative bottom, the main cost has not yet been separated. Generally speaking, investors need not worry too much. If the share price is relatively high, but the main force has no signs of escape, the main force with a certain strength will not allow the share price to drop sharply. Investors who want to leave the field will have a better chance if they are not "greedy".

Investors should pay attention to the "bad stocks" which are already relatively high when the "bad news" comes out and the main force has been completely retired. Such investors should try their best to avoid any fluke.

Focus on the "bad news" after the announcement, the information displayed in the display of main activities. If the stock price is in a low position, obvious signs of main activities, and there are regular large single cargo phenomenon from time to time, it is very likely that the main force is "picking up the cheap"; if the share price is at a high level, the main activities are frequent and the volume of spanactions is obvious, then the main force will be in the reverse position or the shipment.

One of the ways to test whether a stock has a main activity is to test it. Investors who have large amount of capital or large number of shares can choose to buy and sell the same stock and the same number of stocks at a certain time. By looking at the number of spanactions and the number of shares per column displayed in the column of "the day turnover" column, we can see who is in and who is out. Generally speaking, when the total volume of spanactions is fixed, the retail investors who make more spanactions and have fewer shares are the main players.