First, we need to know what band operation means. Band operation comes from Eliot's wave theory, which holds that the stock price will rise from the trough to the peak, and then fall from the peak to the trough, forming a periodic cycle. Today, Bian Xiao compiled some knowledge about stock selection for everyone. Let's have a look!

How to select stocks for band operation

Choose stocks that you are familiar with. Ordinary investors can't be familiar with all industries, nor can they track thousands of listed companies for a long time, so try to avoid unfamiliar industries.

Theme hotspots should actively participate, and themes and hotspots are the most indispensable in the investment market. Although these are short-term hot spots and relatively strong sectors, investors can still have a good return on investment if they can grasp the opportunities in the market according to the rotation law of stock market hot spots.

Stock picking skills in internal and external markets

Internal and external trading of stocks means that investors may usually find more active buying or selling through the size and proportion of internal and external quantities, and often they can find the trend of bookmakers, which is a more effective short-term indicator.

Among the stock selection techniques in the internal and external markets, the value of the internal market is large, indicating that it is in the seller's market, and the trend of the day is usually low. The large value of the inner disk indicates that it is in the buyer's market, and the trend of the day is usually high. In the process of stock price decline, it is often found that the outer disk is large and the inner disk is small. This situation does not mean that the stock price will definitely rise.

The inner disk refers to the number of shares traded at the buying price, and the outer disk refers to the number of shares traded at the selling price. If the number of external disks is greater than the number of internal disks, it shows that the buyer is powerful and the stock price may rise under the push of the buyer. If the number of internal disks is greater than that of external disks, it shows that the seller is powerful and the stock price may fall under the pressure of the seller's power.

Two major options for stock selection

First, choose to underestimate the stock. The valuation of stocks is generally judged by the price-earnings ratio. P/E ratio represents cost recovery based on current stock price, current performance and investment years. It is one of the indicators to measure the valuation of most stocks. Choosing a stock with a historically low P/E ratio in a bull market is equivalent to adding a safety mat to this investment. If the future performance rises, or the valuation is repaired, both of them can bring market to the stock price.

Second, choose the leading stocks in the industry. From the past, the leading stocks in the industry generally have a leading role. Leading stocks will start before the market and adjust before the market. Whether in performance or in subject matter speculation, leading stocks have incomparable advantages. In terms of performance, the performance of leading stocks is not worse than that of stocks in the industry. In terms of theme speculation, leading stocks are usually selected for large capital entry, which brings market effect, so leading stocks rise more and fall less.

Batch stock selection

Heap: When there is a pile of trading volume, that is, when there is a "hill pile" of trading volume, it is the leading signal for the stock price to rise. Investors can add this stock to their own choices and wait and see.

Volume: Volume refers to the relationship between the volume of individual stocks and the previous trading days, which is several times. At the top of the volume, it may be that the main force is carrying out shipping operations, and the probability of stock price decline is greater. At the bottom of the heavy volume, it may be that the main force is opening positions, and the probability of stocks rising is high, so investors try to choose stocks with heavy volume at the bottom.

Shrinkage: if the stock shrinks at a low level, it means that the short-term strength of the stock has been completely released after a long-term decline, and the stock market is about to reverse, which is a buying signal. On the other hand, if the stock shrinks at a high level, it means that the stock has weakened after a long-term rise and its share price has peaked.