There are many bad stocks in A-shares, so I won't talk about them here, because it will have an impact on other companies, so I won't talk about it, but I will teach you how to identify bad stocks and avoid buying them.

there are three kinds of junk stocks in the stock market.

the first kind, retail investors buy and sell, and specialize in harvesting stocks of retail investors and junk companies.

second, the performance is average, and the major shareholders are thinking about cashing out all day, and they will easily announce their reduction and cash out.

third, the performance is getting worse and worse, the stock price is getting lower and lower, and the company just wants to protect the junk company stock.

talk about these three types of garbage companies and how to avoid them.

Stock of junk companies with market value management

This kind of listed companies, which specialize in cutting retail investors together with external funds, can be said to be natural enemies of retail investors. Within listed companies, joint private equity funds will be used to build rat warehouses, pull up Taiwan's stock prices, pit shareholders and earn their hard-earned money. Usually, listed companies publish good news and bad news, rat warehouses ambush in advance, and the agreed funds are responsible for cooperating with sedan chair to harvest retail investors.

this kind of company actually has some characteristics.

1. There is a negative limit.

in fact, it is rare for individual stocks to fall below the limit. Except for some stocks that have been sizzled, it is the down limit caused by major bad news. In other cases, individual stocks rarely fall. The stocks managed by market value are either manipulated down limit or listed companies cooperate with the release of negative down limit. Therefore, it is a wise choice to try to avoid falling stocks.

2. The turnover is irregular.

the trading volume of stocks managed by market value is generally irregular. Usually, it is mostly in the tens of millions of transactions. But when the stock price changes, the turnover can often be as high as hundreds of millions. In fact, the funds are used to liberate some rat warehouses and let them make money. Once this part of the funds leave the market profitably, the stock price will drop rapidly, and the retail investors will be closed and beaten. Therefore, we must pay attention to the large and small volume of transactions, or the abnormal amplification within a period of time.

3. Do not follow the market trend.

since the essence of this kind of stock is to cut retail investors, it will not follow the market. The market fell, it rose, attracting attention, the market rose, it fell, and took the opportunity to ship. It is said that stocks with independent trends are good, but stocks with particularly independent trends are not good. Taking advantage of the trend is the normal capital trend, not unique. Unique, the final result, must be a retail harvester, because as long as there are retail investors, it is necessary to cut, which is not good for the market.