What principles should be grasped in the selection of medium and short term stocks

The short and medium term operation is very challenging, which requires investors to be sensitive and decisive. The basic principle of medium and short-term stock selection is to require the selected stock (or stock portfolio) to have a higher growth expectation in a relatively short period of time, but pay no attention to the forward stock price trend characteristics after this specific period. Therefore, this determines that the medium and short-term stock selection must focus on the trend and pursue the characteristics of speculative spread income, which is obviously different from the long-term stock selection focusing on the stock quality and the pursuit of stable investment income. According to the experience, the following basic principles should be referred to in the short and medium term stock selection:

(1) Actively participate in market hot spots. Following the hot spot of the market has become one of the ways for short-term investors to win over the market and obtain ideal investment returns.

(2) Focus on the leading stock in the strong plate.

(3) The announcement of listed companies contains certain opportunities for individual stocks. Not only do listed companies often have unexpected surprises in their annual reports and interim reports, but also investors can find a lot of information that has a significant impact on the company's major business activities, equity restructuring and other information that has a significant impact on the price of individual stocks.

(4) Skilled in using various technical analysis tools to help optimize trading opportunities. Although there is a phenomenon of chart traps set by makers in China's stock market, which leads to the failure of technical analysis methods in some cases, it is still an effective and feasible way to identify the technical traps after truly understanding the essence of technical analysis.