One touch can destroy three generations. What kind of stocks should not be touched in stock trading?

Stock investment is the act of using money to buy stocks and obtain income. (The income from dividends is not discussed here) Choose to buy at a low point and then sell at a high point. The price difference obtained is the return on this investment. However, it is easier said than done! So stock investment is to choose the right stock to buy and sell at the right time. So, how to choose? What kind of stocks can you choose, and what kind of stocks can't be touched? Next, I will tell you what kind of stocks you should not touch, as one touch will destroy three generations.

1. For stocks whose fundamentals have deteriorated, in the long run, what supports the stock price is the stock fundamentals and the listed company's own industry prospects and profitability. A company's fundamentals will ultimately be reflected in its own stock price. The deterioration of fundamentals indicates that risks have increased significantly.

2. For stocks whose controlling shareholders have significantly reduced their holdings, retail investors have very little understanding of the listed companies. Even on-site surveys by funds and institutions only understand the superficial phenomena. Those who know the best about listed companies are the controlling shareholders. They know the value of the company's stocks best, just like a good son is like a father. Once the controlling shareholder significantly reduces its holdings, it means that the controlling shareholder has been extremely disappointed with the company. Although the stock may not fall sharply immediately, continued weakness is inevitable.

3. Stocks with constant scandals. The so-called "scandals" for individual stocks certainly do not refer to good news, but to negative news, such as: company information disclosure violations, investigation by the China Securities Regulatory Commission, performance reports Fraud, etc. Stocks with constant news like this are bound to be involved in lawsuits. Not only will the company's production and operation be affected, but there will also be big problems in the company's management.

4. For stocks that are not patronized by main funds (trading volume is sparse), the rise of the stock is driven by funds, and stocks without financial support are retail investors. Regardless of whether the market is bullish or bearish, without capital promotion, these stocks will consolidate indefinitely. The characteristics of this type of stocks are: they don't rise much, and when the market adjusts, they fall more sharply than anyone else. They also follow the bull market when they are bullish. Once they adjust, they not only return to their original positions, but also hit new lows. You cannot buy this kind of stock.

5. For stocks whose stock prices have risen sharply, the stock prices have risen sharply in a short period of time, and the risk has increased. A head may be forming, and the market maker is preparing to ship, or is shipping.

6. Don’t touch stocks that have not bottomed out. It’s a long way down, with no bottom. Even if you are lucky enough to buy at the bottom, you still have to endure the suffering. It can take at least a few weeks or more than a few months. As soon as the stock price rises, you quickly run away. Then the stock price keeps rising. The so-called bottom is not profitable. That's what makes big money.

7. Don’t touch stocks that are trading sideways at high levels after a sharp rise, and ignore the fluctuations of the market. It is trading sideways, as if it is about to break through, and it looks very safe. In fact, the dealer is quietly shipping goods. When the sales are finished, it starts to fall from slow to fast. The market will fall if it lasts for a long time. That's the truth.

8. Don’t touch stocks that have been speculated to have risen sharply in the early stage. Even if it falls back now, don’t touch it. The value of 10 yuan on the left side of the mountain top is different from the 10 yuan on the right side of the mountain top. The value of 10 yuan before shipment is different from that after shipment. Every pick-up on the right side of the hilltop is a recipe for death.