What Are the Pros and Cons of Corporate Stock?

The stock price refers to the trading price of the stock, which is a relative concept to the value of the stock. The true meaning of stock prices is the value of corporate assets. The value of the stock price is equal to earnings per share times the price-earnings ratio.

share price

It is often said that the stock market is a barometer of the economy. In other words, the stock price changes not only with the economic cycle

As far as the stock market is concerned, in general, the factors that affect stock price movements can be divided into: individual factors and general factors. Each

According to the trend theory, there are three trends in the movement of stock prices.

The main thing is the basic trend of the stock.

That is, a situation in which the stock price rises or falls broadly or comprehensively. This change usually lasts for one year or more, and the total stock price rises (falls) by more than 20%. For investors, the continuous upward trend has formed a long market, and the continued decline has formed a short market.

The second trend of the stock price movement is called the secondary trend of the stock price.

Because the secondary trend often moves in the opposite direction to the basic trend and has a certain pinning effect on it, it is also called the correction trend of the stock price. The duration of this trend ranges from 3 weeks to several months, and the increase or decrease of the stock price is generally 1/3 or 2/3 of the basic trend of the stock price.

The third trend of stock price movement is called short-term trend.

Reflects the movement of stock prices within a few days. Corrective trends usually consist of three or more short-term trends.

Of these three trends, long-term investors are most concerned about the basic trend of stock prices, whose purpose is to buy stocks in the long market as much as possible, and to sell stocks in time before the short market is formed. Speculators are more interested in the correction trend of stock prices. Their purpose is to make short-term profits from it. Short-term trends are of lesser importance and are subject to manipulation, making them inconvenient for trend analysis. People generally cannot manipulate the basic trend and correction trend of stock prices, and only the state's financial department can make limited adjustments.

The stock price index is also called the stock price index. Dynamically reflect the total price level of the stock market in a certain period

The profitability and confidence of the trader can completely control the operation performance. Self-contradiction and self-doubt caused by misjudgment,

The "turning point" in the rise and fall of the stock price refers to the peak and trough of the stock price. If in the course of the rise, the stock suddenly appears to have an unprecedented large volume on a certain day, but compared with the previous few days, the stock price has been stagnant, or has only risen slightly, or the gap between the highest price and the lowest price on the day has widened, but on that day When the closing price is not necessarily lower than the closing price of the previous day, these signs indicate that the market maker may sell a lot of stocks or even clear positions. Many retail friends are unable to distinguish these situations so well that they miss out on opportunities. After the banker made a large number of sells for the first time during the period when the stock price climbed, a vacuum would appear immediately, so the transaction volume is likely to shrink, and the stock price will continue to fall. The time to identify the peak again is the last time, it should be when the first rebound occurs, it usually appears within a few days after the peak. If there is a rebound after falling from the peak for 3 to 5 days, but it is accompanied by the following signs, it is not enough to rebound:

1. The trading volume has not been enlarged, even lower than the previous few days.

2, the stock price is not strong.

3. The increase of the stock price is not as good as half of the difference between high and low in a day at the peak.

If the intensity is not enough, the rebound will not be sustainable. Usually, the first rally after the start of a downturn ends quickly. The first day of the rally was not bad, but the second day of the rally closed down again. Therefore, when the first rally fails, it is recommended that you must further throw out the stocks you hold.

Many investors see their stock prices start to fall from their peaks, and they feel at a loss when trading volumes shrink. In fact, this is a phenomenon that often occurs after the banker sells at a high level. However, when everyone knows that the decline is unavoidable, the volume will increase slightly, and it is too late to take action only when everyone has consensus. When a big drop may occur, investors must compare the stock price and trading volume of each hour with the stock price and trading volume at the same time the previous day. When the stock price rebounds from the peak, the first time it rebounds, it is best to pay close attention to the trend of the stock price, and it is also necessary to understand whether the trading volume is increasing or stagnating. If the trading volume shrinks, it can be sold decisively when other buyers are also interested in the stock after the stock price has risen a large period.

The daily line is a reflection of the daily fluctuations of the stock price, but if we are too obsessed with the daily stock price fluctuations, we will "see trees but not forests". Therefore, to grasp the trend of stock prices from a longer period, we must also apply weekly charts. Come and observe. In general, on the weekly chart, we can find trading points by observing the resonance between the weekly and daily lines, the second golden fork, the resistance level, and the divergence.

1. The weekly line is in resonance with the daily line. The weekly line reflects the medium-term trend of the stock price, while the daily line reflects the daily fluctuations of the stock price. If the weekly indicator and the daily indicator send a buy signal at the same time, the reliability of the signal will greatly increase, such as the weekly KDJ and the daily Line KDJ resonance is often a better buying point. The daily KDJ is a sensitive indicator, with rapid changes and strong randomness. False buy and sell signals often occur, making investors confused. Using weekly KDJ and daily KDJ's common golden fork (so "resonance" appears), you can filter out false buy signals and find high-quality buy signals. However, in actual operation, such problems are often encountered: Because the daily KDJ changes faster than the weekly KDJ, when the weekly KDJ Jincha, the daily KDJ has been a few days ahead of the Jincha, and the stock price has also risen for a period The buying cost has risen. For this reason, aggressive investors can buy in advance when the weekly K and J lines are heading to form a golden fork in order to reduce costs.

2. Weekly second golden fork. When the stock price (weekly chart) rebounds and breaks through the 30-week line after a period of decline, we call it "a weekly golden fork." However, at this time, it is often only the bookmaker is building a position. We should not participate, but should Stay on the sidelines; when the stock price (weekly chart) breaks through the 30 weekly line again, we call it the "second weekly golden fork", which means that the banker is washing up and is about to enter a pull-up period. There will be a large increase in the market outlook. At this time, you can pay close attention to the movement of the stock, and once its daily system sends a buy signal, you can follow up boldly.

3. Weekly resistance. Weekly support and resistance are more reliable than on the daily chart. Since the market we can find a rule, from a weekly perspective, the first wave of many oversold varieties rebounded often reached the 60-week moving average, there is no small change. Based on the analysis of the weekly K-line pattern, if the upper-line weekly K-line touches the 60-week moving average with a long upper shadow line, this trend indicates that the 60-week line is under great pressure, and the market price will most likely have to retrace. The weekly line even crossed the 60-week moving average, so the market outlook is likely to continue to rise and completely break the 60-week moving average. In fact, the 60-week moving average is the annual line in the daily chart. However, it is difficult to distinguish the willingness to break through the annual line alone. The trend is often difficult to divide due to the continuity of the single-day fluctuations. After the breakthrough, the stability is good, and we have enough time to determine the investment strategy.

4, departure from the weekly line. The daily divergence does not confirm whether the stock price has peaked or bottomed, but if the important indicators on the weekly chart show a bottom divergence and a top divergence, it is almost a reliable signal above the middle (bottom). You may wish to review the important bottom in the past And the weekly indicator at the top should be a good reference for finding the future bottom.

After the stock price has experienced a certain high sideways, there will definitely be a choice in the reverse direction of the stock price, especially in the case of short-term heavy volume. At this time, investors are often confused, and it is not clear how to judge that such heavy volume is the main force. Escape is still the force to rise again. In the rising stage of the stock price, especially when the stock price has changed due to the volume of trading, the trading volume continues to enlarge. From a normal perspective, the stock price should rise with the volume of trading. The situation that the trading volume is enlarged and the stock price stagnates is a red flag, especially when the stock price is already high. In the process of rising stock prices, the volume of trading volume increases and decreases again. It is very regular. It is a complete process to lower the volume and then shrink the volume to increase the stock price. Then the high volume is shipped. Then the occurrence of a single phenomenon is a bit counterintuitive. For example, a simple one-time heavy volume is abnormal. Then the situation of the single-time heavy volume is whether the main force is entering or shipping, but this situation is rarely encountered in the market. The simple one-time heavy volume phenomenon, If it was nt for the main chip s remaining chips from the last shipment, it s the start of the main pump, and there will be a heavy volume in the later stage. However, there is another situation, that is, there has been a high-volume situation after the high sideways, and a high-volume situation has occurred again. The analysis of this situation depends on the high volume of the previous period, such as the case of this stock in the following figure.

In the area B below, we can see that there is a heavy volume situation. Then whether the stock price can rise after this heavy volume, we must first analyze the trend of the stock price and the characteristics of the trading volume. In the previous period, the stock price experienced a high point, that is, the A area, and the corresponding volume change in the A area was a heavy volume phenomenon in the C area. At this time, it is necessary to analyze whether the main force is in a profitable state when the stock price forms a high point in the A region, and whether the main draws out or exits the chip in the C volume corresponding to the A high region. Judging the chip properties in the A range becomes the basis for determining the later changes in the stock price in the B range. What can be seen is that when the stock price rises to reach the A high, the increase in volume combined with the change in volume before the rise constitutes a circular pattern of volume. You can see the mark of G point. It is a situation in which the stock price drops after the short-term enlargement of the trading volume at the bottom, while the trading volume also shrinks, and then the stock price rises and the volume is increased. Then the process of the stock price from low to high, the volume is reduced, and the process is reduced. Simply completed a process of speculation.

The other one is the process of opening the daily limit board when there is a high volume in area A, and this daily limit board is generated under a certain increase in the previous day (7.02%). In this short-term rise, The possibility of suctioning goods is small. This, to a certain extent, can also rule out the possibility of the main area A sucking goods. Another point worth analyzing is the change in the stock price in the B range. You can see the characteristics of the obvious changes in the trading volume in the corresponding trend of the K line in the B range, such as the stock price and trading volume corresponding to D. Volume is a phenomenon of enlargement within a large range, but the stock price is a small increase, which indicates a certain degree of stagnation. Another point is that after the situation of heavy volume of the Yang line, there is no continuous rise in the second trading day, but a Yin line appears, which is the place corresponding to E. This downward trend after the heavy Xiaoyang line stagnates is not a good phenomenon. The key point is the change in the stock price and trading volume corresponding to point F. The stock price fell within three days from E to F, and the trading volume gradually increased, especially the phenomenon of the heavy line at point F falling. This decline in the Yinxian line is a downward trend that breaks through the three cost moving averages.

And there is a point in this place that the amount of the Yin line is relatively large, which is basically close to the large number of the Yang line. This kind of stagnation of the Yang line after the heavy stagnation of the Yin line broke down, is a symptom of the beginning of the end of the decline in stock prices. But when this kind of situation appears in the market, investors tend to be obsessed with the trend of heavy volume of the Yang Xian, there is still the illusion of waiting for the stock price to rise. After the stock price has experienced a certain high level sideways, and the previous high point is characterized by heavy volume shipments, the stock price again stagnates and the Yin line breaks down and the situation should be decisively out. This stagnation in the volume of the Yang line is generally the result of a large number of confrontations by the main force. After the main force places a large number of sell orders at a certain price in the market, the main force continuously buys, attracting investors' buying orders. And it is relatively firm in buying when there are a lot of sell orders in the knocking process, but the main article is still deceiving investors.

If the stock price really rises in the presence of a large number of buying orders, then in the case of such a large number of buying orders, the situation that the stock price basically maintains a price throughout the day is often the main purpose of knocking out shipments. The stock price should have risen, but the stock price has continued to decline after the second day, and there are signs of main shipments. Therefore, it is necessary to avoid the decline of the Yin line after the stagnation of the stock price, especially after this situation, the stock price has started to continue to decline, and it is even more decisive. Since the main force flees, it will not immediately pick up the chips near the shipping price. The main force will definitely consider repurchasing the chips at a lower price, so this price should be at least after the main power is shipped. Below the price, the decline is more than 20%. The downside is not large enough, so the upside for the main force to speculate again is small.

Therefore, after the main force completes a hype, the main force generally does not immediately pick up the chips from the retail investors in the short term, and generally does not re-absorb the chips when the stock price declines are small, so there is an upper retail The pressure of holding the market, once again the speculation of the rise in stock prices will be affected by the retail market s holding of the market, so the main force will also increase a certain cost, so the main force after the wave of speculation, put the chips After buying to retail investors at a high level, the stock price will fall to a certain extent, and even the main force will deliberately suppress the stock price, which will cause the stock price to fall more significantly. In any case, this kind of main shipment graph must pay attention to risk, so as not to experience the stock price decline after the main shipment.

In the process of main shipment, after the shipment is basically completed, some of the remaining chips in the hand will use the active Yinxian shipping method, which is the heavy Yinxian mentioned above. Then in some individual stocks, sometimes at quite high levels, there is a downward trend of the stock price opening up and going down, and the day-to-day trading volume is enlarged. Although it seems that the stock price has not fallen much compared with the previous day, the trading volume is in an enlarged situation compared with the previous day.

After the supplier and the buyer have reached a consensus, completing the transaction procedure is called a transaction. The transaction is the purpose and substance of the transaction, and is the fundamental meaning of the existence of the market. In other words, a market without a transaction is not called a market.

In the securities market, trading volume is a collective term for the number of shares traded and the amount of money traded. The number of shares traded is the sum of the number of shares traded on a certain day, and the transaction amount is the currency representation of the sum of the value of the shares traded.

Trading volume is the driving force of the stock market. Stock prices without matching trading volume are nothing. Therefore, trading volume is an important basis for investors to analyze and judge market conditions and make investment decisions, and it is also an indispensable reference when applying various technical analysis indicators.

Trading volume and many factors such as stock price, trading time, investor willingness, and market sentiment are causal and affect each other. The process of volume change is the process of stock investors' desire to buy stocks. That is the process of gathering stock market sentiment. When the popularity converges and the trading volume increases, it will attract more investors to participate, which will definitely stimulate the stock price to rise; the stock price rises to a certain height, investors are discouraged, and the trading volume begins to linger; When people's minds diverge, stock prices will fall; and when people's minds are turbulent, selling volume will increase, and the increase in trading volume will appear to be a fuze of further popularity; when the stock price continues to decline, the trading volume shrinks, investors will escape fear, the supply will exceed demand, and the stock price will again Into the trough ...

Changes in trading volume can best reflect the general trend of the stock market. In the rising market, long-term and short-term trading can be profitable, so stocks change hands frequently, and the trading volume is enlarged; in the falling market, the popularity is diminishing and the trading volume is shrinking.

The total transaction value is closely related to the rise and fall of the weighted stock price index. The rise in the stock price index must be accompanied by a continuous increase in trading volume. In the long market, the trading volume expands with the rise of the index. When the stock price index rises and the trading volume stagnates or shrinks, it indicates that the current round of rising prices is about to end, and then the stock market index will decline. In the short market, the index's Each decline will be accompanied by a sharp contraction in trading volume. When the index declines and the trading volume no longer decreases, the current round of decline will come to an end. This is the practical basis of the saying "see first, see later".

The relationship between trading volume and stock price is reflected in the following two situations:

Volume and price in the same direction: That is, the stock price and the volume change in the same direction. The rise in the stock price and the accompanying increase in trading volume are the continued bullish performance of the market; the decline in the stock price and the subsequent decrease in the trading volume indicate that the seller is optimistic about the market outlook, holding the position unfortunately, and there is still great hope for a rebound.

Volume and price divergence: that is, the stock price and trading volume show opposite changes. The rise of the stock price and the decrease or flatness of the trading volume indicate that the rise of the stock price cannot be supported by the trading volume, which is difficult to maintain; the decline in the stock price but the increase in the trading volume is a precursor to the downturn in the market, indicating that investors are afraid that a disaster will come. The sell-off is out of the market.

Volume is a mirror of the popularity of the stock market. Only when the popularity is strong, the buying and selling can be enthusiastic. The buying interest is soaring, and the trading volume is naturally enlarged. On the contrary, investors are erratic in people's hearts.

Volume is an effective way to observe the dynamics of the big dealers. Huge funds are the essence of big bookmakers, and all their intentions must be realized through transactions. The sudden increase in transaction volume is most likely caused by the bookmaker buying and selling.