Many people like stock trading and hope that they can make money in the stock market. If you want to make money in the stock market, you need to judge whether the trend of the stock is rising or falling. Buy when it rises and sell when it falls. So what? How to judge whether the stock trend is rising or falling?
How to judge whether the stock trend is rising or falling?
1. Fundamental analysis
Fundamentals are long-term investment in stocks The sole determinant of value. What every value investor must do before choosing a stock is to thoroughly analyze the fundamentals of the business. The basic analysis of futures stock index mainly focuses on the basic factors of the stock market, such as macroeconomics and various industries.
Industry analysis: 1. Industry characteristics. Whether the industry is highly volatile and whether it is highly cyclical will have an impact; 2. Industry market space. If the industry has a lot of room for development, it means that the company has relatively good growth potential, and consumption upgrades and rapid economic development will bring new development possibilities to the industry; 3. The living environment of the industry. Excessively fierce competition will inevitably reduce the profitability of enterprises, and vicious competition will cause all enterprises to fall into losses.
Macroeconomic environment: In fact, the impact of macroeconomics and politics on enterprises can be included in industry-level analysis. Economic cycles, interest rates, inflation and other macro factors have little impact on truly outstanding companies. Just pay attention to whether the two have a significant impact on industry development trends at the macro level. For export-oriented enterprises or enterprises with a large proportion of raw material imports, they should pay attention to the impact of RMB appreciation and exchange rate changes. 2. Technical indicator analysis
Technical analysis is a perfect combination of different research methods and professional fields. It aims to predict the future trend of stock market price changes and uses charts as the main means to study market behavior. Fundamental analysis focuses on the supply and demand relationship that causes prices to rise and fall, while technical analysis focuses on market behavior. Among them, MACD, BOLL, and KDJ are the most commonly used indicators.
3. Market expectations and policy impacts
A relatively obvious feature of the A-share market is speculative expectations and policy impacts. Therefore, the emergence of good news and bad news will have an impact on the trend of individual stocks. After strong market expectations are formed, it will become a situation where expectations will affect the trend. In terms of policy, CSRC supervision not only plays a supporting role in the Chinese stock market, but also any political actions and decisions have a great impact on the sectors of the Chinese stock market.
In addition, stock trading must not only judge the correct trend of stock prices, but also stop profits or losses at a reasonable time. If there is difficulty in rising stock prices, stop profits in time. If stock prices continue to fall, stop losses in time to prevent stocks from falling. Finally, investors are reminded: the stock market is risky and investment needs to be cautious.