Stock selection, build a suitable stock pool for you

You can't track all the stocks, so you should carefully read the annual report, interim report, quarterly report and other public information of each company, select the stocks with good expectations from them, insist on tracking them, and take action at the appropriate time. If you only focus on 30-40 stocks every day, your workload will be relatively small, your energy will be more focused, and your chances of success will be greatly increased. Stock selection can start from the following aspects:

(1) Whether there is a substantial increase in quarterly earnings per share. Growth is the eternal theme of the stock market and the main driving force of stock price rise. Pay attention to the following factors: to eliminate non operating income; to examine whether the growth is sustainable; whether the income growth is supported by sales growth; whether the growth rate has slowed down significantly; if so, its stock price may fall.

(2) With the growth of annual earnings per share, the companies with stable performance growth of more than 30% - 50% for many years are most likely to become bull stocks. Of course, its income must be supported by the fundamentals, not from the non recurrent income. Misunderstanding: low P / E ratio does not necessarily have investment value. At present, the profit ratio of iron and steel stock market is very low, but the stock price does not have a substantial upward momentum. The expectation of substantial growth in performance is the driving force for the rise of stock price.

(3) The listing of new products, the increase of new production capacity, new changes and new management may bring good investment opportunities. Paying attention to the changes in the industry and the public information of individual stocks is often one of the opportunities.

(4) Choose strong stocks with fundamental support.

(5) The fund's research ability is strong, and the ability to capture market opportunities is also strong. Whether they are willing to buy a stock can also be used as a reference for your stock selection. With a high degree of institutional identity, opportunities may be higher.