What are the conditions for stock bargain hunting?

Shareholders like bargain-hunting, buying at a low price and selling at a high price, but bargain-hunting is not so easy and requires certain conditions. So what are the conditions for stock bargain hunting?

What are the conditions for stock bargain hunting?

Many stock investors have a misunderstanding about bargain-hunting, thinking that bargain-hunting means buying at the bottom of the stock price, which is the lowest price. This is actually a very wrong concept. The bottom of the stock price refers to a region, not a fixed price or turning point. As long as you can buy in the bottom area, it can be said that it is a correct bargain-hunting, and stock bargain-hunting is also very important.

It is impossible to know that the stock price has fallen to the lowest point in actual combat. Only after the stock price rises in the later period can we confirm whether the previous bottom is the real bottom. It is impossible to predict in advance. So bargain hunting is actually the time when the stock price stabilizes and starts to rebound after falling to a certain low point. When the bottom is confirmed with high probability, as long as the purchase price is relatively low, it will enter the bargain-hunting, which can be said to be successful.

First, the timing of bargain-hunting stocks.

After the stock price bottoms out, it will bottom out through repeated shocks during this period, and the stock price is in a box and shock that fluctuates up and down. According to this feature, we can choose a good opportunity to bargain-hunting, that is, when the market or stock price falls far from the bottom of the central area, we will bargain-hunting, because the stock price will soon be pulled to the central area.

In addition, when the market or individual stocks run in the bottom area, if the trading volume is too small, it is not a good time to bargain-hunting, because it is impossible to confirm whether the stock price will really stabilize. At this time, even if the stock price rises to a certain extent, if there is no cooperation in trading volume, the increase will certainly not be great and the increase will be weak. Therefore, when picking stocks in the bottom area of the stock price, it depends on whether there is already a lot of land in the early stage. Only when the amount of land appears and the amount can be appropriately enlarged can the stock price go out of the bottom area and start a new round of market.

Second, the stock bargain-hunting stock selection

1. After a long period of sharp decline, the stock price is far from the 30-day moving average, and when the deviation rate is high, it can meet the stock selection criteria;

2. The stock price should be far away from the historical transaction-intensive area or the lock-up area above;

3. Pay attention to the allocation of mobile expenses. If the profit disk in the moving cost distribution of a stock is less than 3, then this stock needs special attention.

Whether it is the market or individual stocks, when they start to stabilize after a sharp decline, if a stock meets the above three conditions, then this stock can be used as the object of opening positions. Only such stocks have the potential to rise later. Of course, the premise is that the fundamentals of individual stocks cannot be too big, otherwise everything is empty talk. How to bargain-hunting stocks is what investors have been pursuing, and it also needs continuous improvement. Of course, it is better to use Gann theory and other technical analysis methods to judge the market trend.