Perhaps feeling the spring breeze of a bull market, everyone has been getting more active lately.
Recently, I have often been asked how to conduct a systematic review, how much time to spend on daily reviews, how to select stocks, and so on. Today, I will explain everything to you at once.
If you think this method is feasible and are indeed willing to spend 1-2 hours a day, you can simply follow it.
Firstly, we need to understand what the purpose of reviewing is.
Most professional investors will watch the market during the day, at least sitting in front of the computer to understand the market dynamics.
Non-professional investors will use their mobile phones to check the market, understand market information, and the trends of the stocks they are interested in.
Watching the market itself does not necessarily mean making buy and sell transactions, it is simply to understand the market.
However, our attention is actually limited, and even when watching the market, it is entirely possible to overlook a lot of important information.
So, the purpose and value of reviewing is actually to quietly look back and see what exactly happened in the market today.
Advertisement
Most mature investors will not blindly make transactions within the market.The following article is translated into English:
It's all about organizing after the market closes, and then planning the next step in trading, whether it's to buy or sell.
The greatest value of reviewing the market is actually planning the trading strategy.
The biggest misconception of retail investors is that they need to review the market in a bull market, and do nothing in a bear market.
This makes it very difficult to do well in stock investment, because you always have a superficial understanding of the market, and do not understand the overall situation of the market.
The reason why some investors are very sensitive and relatively accurate in market prediction is actually the result of persisting in reviewing the market.
Let's talk about my own experience of reviewing the market over the years, and what should be done in the review.
The following major modules of reviewing the market have no order, purely personal habits formed over the years.
1. Review of the five major indices.
Shanghai Composite Index, Shenzhen Component Index, ChiNext Index, STAR Market Index, and Beijing Stock Exchange Index.In fact, apart from the five major indices, there are also some broad-based indices that require attention.
For example, the SSE 50, the upcoming CSI A-Share 50, the CSI 300, the CSI 500, the CSI 1000, the CSI 2000, the SME 100, the ChiNext 50, the STAR 50, the STAR 100, the Beijing Stock Exchange 50, and so on.
These broad-based indices can be directly placed in a sector for easy viewing.
Of course, I will also compile the Hang Seng, S&P, NASDAQ, Nikkei, India, and peripheral indices from the UK, France, and Germany into a sector.
Reviewing the index mainly involves looking at the index's rise and fall to judge one's overall style.
For example, if the Shanghai Composite Index rises a lot, it indicates that capital prefers blue-chip stocks.
If a broad-based index like the CSI 2000 has a large increase, it indicates that capital is more favored for small-cap stocks.
If the STAR 50 rises, it indicates that capital wants to speculate on the Science and Technology Innovation Board, and if the ChiNext rises, it indicates that the new energy direction may be more concerned.
Each major index has its own characteristics and represents different things. Observing the changes in the indices can better understand the changes in the market style.
2. Market hotspot review.Market Hotspot Review mainly refers to the review of popular sectors.
First, one must take a look at the market's heat, mainly the ratio of the number of stocks hitting their upper and lower limits, which determines the market sentiment.
By the number of stocks hitting their upper and lower limits, one can first understand the level of market heat.
Typically, more than 100 stocks hitting the upper limit definitely indicates sufficient heat, and there is a main line sector in motion.
50-100 stocks hitting the upper limit is normal, and less than 50 indicates a lower heat, with less active capital.
The number of stocks hitting the lower limit is usually less than 10; more than 10 indicates a significant risk in the market, and one should be cautious to avoid it.
The market hotspot review can be seen through popular sectors.
Many people like to look at the rise and fall of sectors (concepts), but I am accustomed to looking at the number of stocks hitting the upper limit within the sector.
By the ranking of the number of stocks hitting the upper limit and the percentage of the upper limit stocks compared to the entire concept, one can see where the hotspot is.
If a sector has 80 related companies and 15 of them hit the upper limit, then this sector is the core of the heat, with a proportion close to 20%.Under normal circumstances, if the proportion of stocks hitting the upper limit exceeds 5%, it is considered a hot spot; if it exceeds 10%, it is an absolute hot spot.
Additionally, it is important to pay attention to the size of the entire sector and the amount of capital it can accommodate.
A sector with a total transaction volume of less than ten billion is considered a minor sector, one with a transaction volume between ten billion and one hundred billion is a medium-sized sector, and a large sector often has a transaction volume exceeding one hundred billion.
Minor sectors are characterized by short, flat, and fast movements, and their periods of heat are not long. Sectors with hundreds of billions in transactions are the centers of heat, and their phased increases are generally the largest. Sectors with a transaction volume of one hundred billion are capable of accommodating large capital and move in large waves, with significant actions during a bull market.
3. Transaction volume review.
The review of transaction volume refers to a review of the day's transaction volume from the highest to the lowest.
If you don't have time, you can review the top 50, and if you have time, you can review companies with a transaction volume greater than one billion.
Transaction volume determines the current choice of the main force and can be broken down into sectors, leaders, and trading styles.
If you insist on checking the transaction volume list every day, you will find several phenomena.
One is that there are many familiar faces, these companies have long been concerned by capital, they don't fall much, and they won't be left behind when they rise.Secondly, newly listed stocks are often the absolute hot spots of the moment, and almost all big bull stocks and demon stocks will not miss out, as they will always have a transaction volume of over 1 billion.
Thirdly, when you find that many individual stocks in certain sectors have made it onto the transaction volume list, the movements in this sector will not be small, and there will naturally be many opportunities.
Therefore, the transaction volume list is more important than the list of limit-up stocks. It is necessary to go through each one every day, spend about 10 minutes looking at them, which helps to understand the market's hot spots and the direction of capital flow.
4. Review of the limit-up and limit-down stocks.
The limit-up and limit-down stocks are all stocks that need to be reviewed every day.
It's not that you must chase the limit-up stocks, but you need to know what the most active capital in the market is doing.
First, the list of stocks with the largest decline is a must-see.
You need to know which stocks the capital has abandoned, which helps you to clarify your direction.
Next is the list of stocks with the largest increase, which is also a must-see every day.
Usually, all the limit-up stocks are reviewed once, and it is more like a cursory review.The following article is translated into English with special attention to two key points.
Key Point One, stocks that hit the upper limit with a transaction amount greater than 500 million, these are not done by small capital.
Especially 1 billion to 2 billion, which requires more attention, as it represents the direction of the main force capital.
Key Point Two, stocks that have consecutive board hits must be paid special attention to, as these are absolute strong leaders.
Any stock that goes from one to two indicates the potential for takeoff, and it is necessary to pay extra attention to the industry it is in, its technical form, market sentiment, and so on.
Of course, if you are doing ultra-short line, all stocks that go from one to two should be added to the self-selection, and homework should be done every day.
5. In-depth study of self-selected stocks.
Let's gloss over this direction, as it varies from person to person.
Friends who know me should know that my self-selected stocks generally do not exceed 30.
The number of stocks that are added or removed each month is also generally not more than 5, with very few changes.The individual stocks I follow are almost all in the field of big technology, and there is also a part of large blue-chip stocks.
Occasionally, based on the trends of the sector, the market, including the trends of some leading new concepts (2-3 companies), I will adjust some stocks.
Everyone's energy is limited, from the broad-based index, to the industry sector ETFs, and then to the leading individual stocks, I think it is enough.
30 self-selected stocks, from daily lines, to weekly lines, monthly lines, and then to 30 minutes, 60 minutes, it actually takes a lot of time.
If you also want to identify the effectiveness of some information and news, the value of some research reports, etc., it will also take a lot of time.
If you don't study individual stocks, you can complete the daily review in less than 1 hour. If you study individual stocks, the time is uncertain.
Generally speaking, I will also do a systematic review on the weekend, an afternoon or an evening.
For a person who loves stock investment, reviewing is the process of entering a stock world to dig for gold, which is actually very happy.
Even when the screen is full of green, it is also a process of digging for gold mines, and you will not feel emotionally low.If you hope to go further on the path of stock investment, persisting in reviewing your trades is key.
Of course, if you are a beginner just starting to review, it is recommended that you take some notes during the review process, writing and drawing are both acceptable.
When one day you look back and review your past trades, you will find your growth.
Comments