How to choose stocks in rebound Market

Rebound market refers to the rising market which can not form an upward trend, and most of them reflect the rebound in the process of decline. Many investors are good at seizing the rebound market and speculating repeatedly to the end, but they make little profit. Some even earn the index and lose money. The problem lies in the wrong "object". To make long-term investment, we should undoubtedly choose high-quality stocks with low P / E ratio, high growth and low risk. But the rebound market is short-term speculative market, most investors sole oil, a shot away, how to choose stocks is very particular.

(1) Choose stocks that fall fast and fall deeply: big things are not good. Most third tier stocks lack performance support, and the holders are nervous and short of breath. They often sell cheaply and fall the worst.

(2) Choose stocks that suffer from bad news and whose stock prices have fallen sharply: due to the bad news, such stocks are sold by a large number of shareholders, and their stock prices are severely suppressed by the short side. However, such stocks can still be favored by investors and become one of the fastest rising stocks. Therefore, when the bad news distorts the stock price and the bad effect is eliminated, in order to take advantage of the good opportunity of low absorption, the stock price will return to its true colors and restore its reasonable price.

(3) Select the stocks with the care of the makers: some stocks are not subject to the care of the makers because of the downward trend of the market, or the decline is very small. Once the market warms up, the market makers will try their best to lift it. There are many followers and the rebound will be fast. But need to pay attention to this kind of stock to "get off the sedan chair" in time, so as not to become a scapegoat.

(4) Choose stocks that have good rumors but are dragged down by the big market: some stocks should have risen due to good rumors, but should not have risen due to the drag of the big market. Once the big market rebounds, they will stand out.

(5) Choose new listed stocks: old stocks have many chips to hold on to, but when they rebound, there are many people to release them, and there are many obstacles. However, the newly listed stocks have less chips to hold, less pressure to release when they rebound, and are often cared by large investors and major institutions, so they can often win the market.

(6) Choose the third tier stocks with low absolute price: rebound is a kind of short-term speculation, speculative stock selection does not need to consider the company's performance, and the stocks suitable for short-term rebound are generally the third tier stocks with poor performance and low price. The reason is obvious: the price of these speculative stocks is low, with the characteristics of large fluctuation and low transaction fees, and their circulating chips are generally relatively small and easy to speculate.