How to choose stocks? How to avoid stocks that look good but will lose money?

The stock market is a place full of opportunities and risks. Many people want to earn wealth here, but many people have suffered heavy losses here. So, as a novice investor, how to choose good stocks in the stock market?

First of all, here are a few simple principles for reference:

As a small white user, it is really not recommended to buy a short-term line. You don't have rich experience and get lost easily. As an ordinary retail investor, the most fundamental logic of buying stocks is to buy a long-term high-quality company and hold it, so as to bring about continuous asset appreciation.

1, look at the plate

When I say look at the market, I don't look at the K-line, but at the "value" of the stock. Buying stocks is the ability to buy the future development and profitability of listed companies. Only by objectively understanding the future development of listed companies and carefully analyzing and evaluating the future growth trend of listed companies can small and medium-sized investors grasp the changing trend of listed companies' share prices and minimize the capital risk of investing in stocks.

Only stocks that are currently undervalued and will develop well in the future will meet your requirements: for example, Buffett has long held Coca-Cola, and if you bought Microsoft shares 20 years ago and Apple shares 10 years ago, they will all go up and then go up.

It is best to choose some leading stocks for a long time. Although it may fall, it is much more stable and friendly to the stock market than other junk stocks and concept stocks.

2. Look at the financial report

The strength of companies that can be listed is definitely there, but some companies' stocks have been falling since listing, either because of problems in the company's operation or the break of the capital chain.

Therefore, when individuals choose stocks, they should first look at the financial reports of this company in the past few years, quarters and months. If the business is in good condition and the core business is in a growing trend, then this stock may continue to rise.

3. Market and stock news

The news of the market and individual stocks will affect the investment strategy of investors to a certain extent, thus affecting the trend of individual stocks. When there is significant positive news in the market and individual stocks, it will attract investors in the market to buy, and the stock price will show an upward trend in the short term. For example, the introduction of the new infrastructure concept will attract market funds to flow into the new infrastructure sector and promote the stock strength of the UHV sector.

My first stock is new energy. At that time, I saw the news that the country strongly supported the construction of new energy, so I chose a leading stock and earned more than 2000 yuan. Therefore, if you choose stocks, you can also combine the guidance of public opinion, which is likely to make money. Such as vaccine stocks, chip stocks and so on.

Second, which stocks can't be bought?

1, ST stock

Don't touch stocks with "ST" in their names. If the name of a stock is preceded by the word "ST", it will give the market a hint that this stock has investment risks and play a warning role. Generally, it is a company that has suffered losses or financial anomalies for two consecutive years.

2. Resolutely refuse to buy skyrocketing stocks.

If the stock market goes straight into the sky like a chopstick, it means that the banker has changed his mind and left, and you will be trapped if you go in again. The skyrocketing is driven by big funds. When a stock rises to 300% or even higher, the original market main force will run away, and the new market main force will not be formed soon. Usually, few big buying orders take over immediately, and it is difficult for prices to rise in the short term.

Don't touch the volatile stocks.

A stock has been fluctuating at a high level, and the volume can't go up, and it has entered a long-term sideways consolidation. This kind of stock looks safe and can be broken at any time. In fact, there may have been a main force manipulating icons at a high level, just waiting for retail investors to follow up, and then quietly shipping. In this case, stocks generally come to the big yinxian line, and they will fall after a long time, so you need to be careful.

4. Don't touch stocks whose turnover rate exceeds 20% after the stock price rises for one round.

The turnover rate is not as high as possible. Many times, institutions or hot money will use good news to speculate, stir up the stock price, then change hands at a high level and ship them upside down, and distribute the chips to retail investors. There is a wise saying in the stock market, that is, everyone knows whether it is good or not, and everyone knows whether it is bad or not. If you enter the market at this time, you must be prepared to close your position. When you meet this stock, you meet it.

5. Zhuang Gu can't touch it.

Zhuang stock refers to the stock whose share price rises or falls or whose trading volume is intentionally controlled by the dealer. By increasing or decreasing the number of chips in their hands, the dealer keeps washing dishes and shaking positions to achieve the purpose of raising funds, and then chooses the opportunity to raise the stock price to attract retail investors to chase after the high price, so as to achieve the purpose of shipping and profit from it.

Some market characteristics of Zhuang shares are the sharp rise and fall of stock price and the fluctuation of trading volume; Fundamentally, the circulation value of individual stocks is small, which is common in stocks with circulation value of1-200 million. The number of shareholders is small and the chips are concentrated. The fundamentals are poor.