Value discovery is the most traditional investment method on Wall Street, and it has been recognized by China investors in recent years. The basic idea of value discovery method is to use some basic indicators such as P/E ratio and P/B ratio to find undervalued stocks. This method is difficult for non-professional investors because it requires analysts to have considerable professional knowledge. The theoretical basis of this method is that prices always return to value.

2. Choose high-growth stocks

This method has become more and more popular at home and abroad in recent years. It focuses on the high growth of the company's future profits, while the traditional value judgment criteria such as P/E ratio are not so important. Using this value orientation to select stocks, the most attractive thing is high-tech stocks.

3, technical analysis of stock selection

The technical analysis is based on the following three assumptions: (1) Market behavior covers all information; (2) the price changes along the trend; (3) History will repeat itself. Under the above assumptions, it is generally unnecessary to pay too much attention to the fundamentals of the company's operation and financial situation by using technical analysis theory or technical analysis indicators to analyze stock selection through charts.

4. Portfolio based on market index (index fund)

With the increase of the number of stock companies, many people find that they may be able to accurately judge the general trend, but it is too difficult to choose the right stocks, and it is increasingly difficult to obtain above-average returns, often spending a lot of manpower and material resources, and the results obtained are similar to or even worse than the broader market. Instead, it is better not to make any analysis and choice.

Extended data:

Matters needing attention

If there is an index fund consistent with the broader market, investors do not need to choose stocks, but only need to buy funds when they are optimistic about the stock market and sell them when they are bearish on the stock market. Because there is no index fund in China, investors cannot invest according to this strategy, but the idea of this method can be used for reference.

From the basic stock selection strategy mentioned above, various stock selection methods can be derived. In addition, with the different market trends and hot spots, there will be different stock selection strategies and methods at different stages of stock market development. In addition, different people will also create their own unique stock selection methods and skills.