How to predict hot stocks

We can refer to the following factors:

(1) Focus on business cycle circulation: according to the theory of business cycle circulation, judge which stage of the current economic general situation is in the business cycle, what the next stage of the overall economic situation will be, and determine the environmental factors that will produce hot stocks in the future. For example, when the economy is in recession, the profitability of all kinds of companies is generally weakened, but the consumption has not stopped, so the situation of the consumer sector is relatively good, and the hot stocks may appear in the consumer sector; while in the stage of economic recovery, people compete to expand the production scale, and the situation of production enterprises is relatively good, so the hot stocks may appear in the production sector .

(2) Grasp the attitude of investors: the stock market is the reflection of investors' judgment of the economic situation. For example, if investors are worried about deflation, this worry will soon be reflected in their investment behavior, and then affect the stock price. If we can grasp investors' thoughts and know what they care about or worry about, then it is not difficult to judge and select hot stocks.

(3) Frequent technical analysis: after selecting hot stocks, technical analysis should be carried out to verify whether the judgment is correct or not. For example, whether the results of technical analysis such as K-line diagram and index are partial upward, and how about the support and resistance.

It must be pointed out that the current hot stocks will eventually be replaced by other hot stocks, and some hot stocks dominate the stock market for a very short time. Therefore, even if the investors choose a hot stock, you should be prepared to sell it as soon as possible when you buy it. Otherwise, not only will you not make money, but you will also suffer a big loss, because hot stocks rise fast and fall fast.