The stock market is a place full of opportunities and risks. Many people want to make wealth here, but there are also many people who suffer heavy losses here. So, as an investment novice, how to choose good stocks in the stock market?

1. Here are a few simple principles for reference:

As a novice user, it is really not recommended to buy short-term. If you don’t have rich experience, you can easily be cheated of your money. No return. As an ordinary retail investor, the most fundamental logic of buying stocks is to buy a long-term, high-quality company and hold it so that it can bring continuous asset appreciation.

1. Look at the market

What I mean by looking at the market is not to look at the K-line, but to look at the "value" of the stock. Buying a stock means buying the future development and profitability of a listed company. Only by objectively understanding the future development status of listed companies and carefully analyzing and evaluating the future business growth trends of listed companies can small and medium-sized investors grasp the changes in the stock price of listed companies and minimize the financial risk of investing in stocks.

Only stocks that are currently undervalued and will develop well in the future will meet your requirements: for example, Buffett holds Coca-Cola for a long time, and if you bought Microsoft stocks 20 years ago or Apple stocks 10 years ago, both It keeps rising again and again.

For the long term, it is best to choose some leading stocks. Although there is a possibility of falling, compared with other junk stocks, concept stocks, etc., they are much more stable and friendly to novices in the stock market.

2. Read the financial reports

Companies that can be listed must have some strength, but the stocks of some companies have been going downhill since they were listed. Either there is something wrong with the company's operation, or there is something wrong with the company's operation. The capital chain is broken.

So, I personally think that when choosing stocks, you must first look at the company's financial reports and operating conditions in the past few years, quarters, and months. If the operating conditions are good and the core business is on a growth trend, then This stock may continue to rise.

3. Market and individual stock news

Market and individual stock news will, to a certain extent, affect investors’ investment strategies and thus the trend of individual stocks. When major good news appears in the market or individual stocks, it will attract investors in the market to buy, and the stock price will rise in the short term. For example, the introduction of the new infrastructure concept attracts funds from the market to flow into the new infrastructure sector, prompting special Stocks in high-pressure sectors strengthened.

My first stock was new energy. When I saw the news that the country was strongly supporting new energy construction, I chose a leading stock to buy and made more than 2,000. Therefore, when choosing stocks, you can also choose according to the guidance of public opinion, and it is very possible to make money. For example, vaccine stocks, chip stocks, etc.

2. Which stocks cannot be bought

1. ST stocks

Do not touch stocks with "ST" in their names. If the name of the stock is preceded by " "ST" is to give the market a warning that the stock has investment risks and serves as a warning. It is usually a company that has suffered losses for two consecutive years or has experienced financial abnormalities.

2. Do not buy stocks that have skyrocketed

If the stock price is like a chopstick, soaring into the sky, it means that the dealer has changed the chips and left, and you will be trapped if you get in again. . The surge is driven by big funds. When a stock rises to 300 or even higher, and the original market main force withdraws and runs away, new market main forces will not be formed quickly. Usually, there will not be big buying orders to take over immediately. In the short term, Prices are hard to rise.

3. Don’t touch stocks that fluctuate at high levels

A stock has been fluctuating at high levels, and its trading volume cannot increase, and it has entered a long-term sideways market. This type of stock looks very safe and looks like it is ready to break through. In fact, there may already be a main force controlling the icon at a high level, waiting for retail investors to follow up and then quietly ship. Stocks that fall into this situation will generally If there is a negative line with heavy volume, it will fall for a long time, so you need to be careful.

4. Don’t touch stocks with a turnover rate of more than 20 after the stock price rises for one round.

The turnover rate is not higher, the better. In many cases, institutions or hot money will Use good news to hype up the stock price, then change hands at a high level to sell icons, and distribute chips to retail investors. There is a wise saying in the stock market, that is: good news that everyone knows is not good news. Everyone knows that bad news is not bad news. If you enter the market at this time, you must be prepared to unwind. If you encounter this kind of stock, you would rather miss it than make a mistake.

5. Banker stocks cannot be touched

Zhuang stocks refer to stocks whose stock prices rise or fall or whose trading volume is intentionally controlled by market makers. The dealer achieves the purpose of attracting funds by increasing or reducing its holdings of chips, constantly washing the market and shaking positions, and then chooses the opportunity to raise the stock price, attracting retail investors to chase the high, achieve the purpose of shipping, and make profits from it.

Some of the market characteristics of Zhuanggu are that the stock price rises and falls sharply, and the trading volume fluctuates. Fundamentally, the circulating value of individual stocks is small, which is common in stocks with a circulating value of 1 to 2 billion. The number of shareholders is small. The chips are concentrated. Fundamentals are poor.