Read the first book to understand investment and financial management

Chapter 20 Investing in stocks, high risk and high return coexist (1)
Inventory of stock market trading terms

Blue-chip stocks are stocks of companies that have performed well but are growing at a slower rate.Such companies have the strength to withstand the recession, but they cannot bring exciting profits to investors.Because the business of such companies is relatively mature and they do not need to spend a lot of money to expand their business, the main purpose of investing in such companies is to get dividends.In addition, when investing in such stocks, the price-earnings ratio should not be too high, and at the same time, pay attention to the historical record of stock price fluctuations during economic downturns.

Hot stocks refer to stocks with large trading volume, strong liquidity, and large fluctuations in stock prices.

Growth stocks are stocks issued by companies whose sales and profits continue to grow faster than the growth of the entire country and industry.These companies usually have big plans, focus on scientific research, and leave a lot of profits to reinvest to facilitate their expansion.

Leading stocks refer to stocks that have influence and appeal to other stocks in the same industry sector during a certain period of hype in the stock market. Its rise and fall often guide and demonstrate the rise and fall of other stocks in the same industry sector.The leading stock is not static, and its status can only be maintained for a period of time.

Black horse stocks refer to stocks whose stock prices have doubled or several times within a certain period of time.

White horse stocks refer to stocks whose relevant information has been made public. Due to relatively clear performance, there is little risk of landmines, and the possibility of insider trading and black-box operations is greatly reduced. At the same time, it has excellent performance, high growth, and low risk. Therefore, it has high investment value and is often favored by investors.White horse stocks have the characteristics of "long-term excellent performance, high return rate, and many people who speculate".

Trading volume reflects the number of transactions.Generally, it can be measured by two indicators: the number of shares traded and the turnover value.At present, both indicators of the Shenzhen and Shanghai stock markets can be displayed.

The resistance line refers to the price at which the stock price rises to near a certain price. If there is a large number of sales, the stock price will stop rising or even fall back.

The support line is the price at which the stock price falls near a certain price. If there is a large amount of buying, the stock price will stop falling or even rise.

The stock market is stimulated by strong bullish or bad news, and the stock price begins to jump sharply. When it rises, the opening or lowest price of the day is higher than the closing price of the previous day by more than two declaration units, which is called "gap up"; When the market or the highest price of the day is lower than the closing price of the previous day by two declaration units, and in a day's trading, it rises or falls by more than one declaration unit, which is called "gap down".

Filling in the gap refers to filling back the empty price that has not been traded when the gap occurs, that is, after the stock price jumps, it will return to the price before the gap after a period of time to fill the gap.

In the upward trend of retracement, the stock price falls back due to excessive rise to adjust the price.

Breakthrough refers to the price fluctuation that occurs after a stock price has gone through a period of trading.

When the bottom stock price continues to fall to a certain price, it will stop falling and rebound, and so on one or several times.

When the top stock price rises to a certain price, it encounters resistance and falls.

The recent trend 20-30 days is the recent trend.

The opening price, also known as the opening price, refers to the first transaction price of a certain security after the market opens on each trading day of the stock exchange.

Closing price, also known as closing price, refers to the last transaction price of a certain security in each trading day on the stock exchange.

The highest price refers to the highest price of a certain security during the trading process from the opening to the closing of each trading day.

The lowest price refers to the lowest price of a certain security during the trading process from the opening to the closing of each trading day.

The rise and fall compares the closing price of each day with the closing price of the previous day to determine whether the stock price will rise or fall.Generally, it is indicated by "+" and "-" on the bulletin board above the trading desk.

Retracement refers to the phenomenon that the stock price temporarily falls back due to the excessive rise in the process of rising stock price.

Rebound refers to the phenomenon that in a falling market, the stock price sometimes rebounds temporarily due to the support of buyers due to the rapid decline.The rebound is smaller than the decline, and the downward trend resumes after the rebound.

The bulls are optimistic about the future market of the stock. They buy the stock first, wait for the stock price to rise to a certain price, and then sell the stock to earn the difference.

A short position refers to a person who thinks that the stock price has risen to the highest point and will soon fall, or when the stock has started to fall, he believes that it will continue to fall and sell at a high price.It just represents a practical direction of operation, not a specific group of people.

A bull market is also called a bull market.It is a market in which stock prices generally rise.

A short market is also called a bear market.It refers to the market in which the stock price shows a long-term downward trend. In the short market, the stock price changes in a big drop and a small rise.

More shorting: The bulls who were originally optimistic about the market sell their stocks due to changes in their views. This behavior is called shorting or long shorting.

Flip long: Those who were originally short sellers changed their views, bought back the sold stocks, and sometimes bought more stocks. This behavior is called long flip.

Short buying is a speculative behavior in which the stock is bought in anticipation that the stock price will rise, and then sold before the actual delivery, and the price difference is collected or made up for the actual delivery.my country's stock market currently does not have a short-buying mechanism, and the stock markets of developed countries in Europe and the United States have such a mechanism.

Short selling is a speculative behavior in which the stock is sold in anticipation that the stock price will fall, and before the actual delivery occurs, the full amount of the sold stock will be covered, and only the price difference will be settled at the time of delivery.my country's stock market currently does not have a short-selling mechanism, and the stock markets of developed countries in Europe and the United States have such a mechanism.

Bad factors and news that cause stock prices to fall, and are beneficial to short positions.

Bullish is the factor and news that stimulates the stock price to rise and is beneficial to bulls.

Lock-in means that the stock price is expected to rise, but unexpectedly, the stock price falls all the way after buying; or the stock price is expected to fall, but the stock price rises all the way after selling the stock. The former is called a long lock-up, and the latter is a short lock-up.

Take the short-term and expect the stock price to rise, first buy at a low price and then sell at a high price in a short period of time.It is expected that the stock price will fall, first sell at a high price and then wait for an opportunity to buy back at a low price in the short term.

Lifting is an extraordinary method to raise the stock price substantially.Usually, large investors sell large orders after lifting to make huge profits.

Suppression is to use extraordinary methods to significantly lower the stock price.Usually, big players buy in large quantities to reap huge profits after the suppression.

Market protection refers to the behavior of large institutional investors buying stocks in large quantities to prevent the stock market from continuing to decline when the stock market is low and sentiment is low.

Dishwashing refers to a method in which the main force manipulates the stock market and deliberately lowers the stock price. The specific method is to first deliberately create selling pressure in order to increase the stock price to make a profit and ship, forcing low-priced buyers to sell the stock, so as to reduce the pressure of elongation. This method can easily pull up the stock price.

Diving refers to the rapid and large-scale decline of the stock price, which is much higher than the lowest price of the previous trading day.

Cloudy decline refers to the situation in which the stock price takes two steps further and slowly declines, such as continuous rain and rain, which will last for a long time.

Gap and cover The stock market is affected by strong bullish news or news, the opening price is higher or lower than the closing price of the previous trading day, and there is a gap in the stock price trend, which is called a gap; in the subsequent trend of the stock price, the gap will be Filling in the gap is called short filling.

Cutting positions, also known as cutting meat, refers to the behavior of investors selling stocks at low prices (losses) in order to avoid further losses when the stock prices fall after buying stocks.

Liquidation is the behavior of investors selling stocks in the stock market.

Investors who built positions began to buy bullish stocks.

To trade stocks, you must first have a comprehensive and detailed understanding of various stocks, understand listed companies, grasp the stock market situation, keep an eye on six directions, listen to all directions, and trade carefully.Only in this way can we enter the market steadily and take the first step to realize our dreams.

Do you know about stock account opening?

Ordinary customers cannot directly enter the stock exchange for on-site transactions, and need to entrust securities companies or brokers to conduct transactions on their behalf.The client's entrusted trading is the basic way of stock exchange transactions, which refers to the activities in which investors entrust securities companies or brokers to act on behalf of clients (investors) to conduct stock trading transactions on the market.

Stock trading procedures generally include several processes such as account opening, entrusted trading, transaction, liquidation and delivery, and account transfer.

The so-called account opening means that a stock trader opens an account for entrusted trading in a securities company.Its main function is to determine the investor's creditworthiness, indicating that the investor has the ability to pay the price or commission for buying the stock.When a client opens an account, when a stock investor entrusts a securities firm or broker to buy and sell stocks on his behalf, he signs a contract with the securities firm or broker to entrust the purchase and sale of stocks.

To entrust a securities firm to handle stock trading transactions, you must first register with the securities firm to establish a relationship of entrustment and trusteeship.The main content of the roster registration includes: the customer's name, gender, ID number, home address, occupation, contact number, and retain the seal and signature sample card.The legal person register mainly includes the legal person certificate, legal person power of attorney, legal person name, and securities firm name.In Shanghai, my country, this kind of work is handled by the Shanghai Stock Exchange. Investors issue ID cards and bank passbooks to handle stock accounts. Stock accounts are similar to stock passbooks. certificate.

There are four ways to entrust: counter order entrustment, telephone automatic entrustment, computer automatic entrustment and remote terminal entrustment.

(1) Order delivery entrustment at the counter.That is, you bring your ID card and account card, go to the counter of the securities business department where you opened the capital account, and fill in the power of attorney to buy or sell stocks, and then the staff at the counter will execute it after review.

(2) Automatic entrustment by computer.That is, you personally enter the code, quantity and price of buying or selling stocks on the computer in the lobby of the securities business department, and the computer executes your entrustment order.

(3) Telephone automatic entrustment.It is to use the telephone to dial the telephone automatic entrustment system at the counter of the securities business department where you opened the capital account, and use the number and symbol keys on the telephone to enter the code, quantity and price of the stock you want to buy or sell to complete the entrustment.

(4) Remote terminal entrustment.That is, you place a buy or sell order through a remote terminal connected to the computer system of the securities counter or the Internet.Except for the way of order delivery at the counter, where the staff at the counter confirms your identity, the other three ways of commissioning are to confirm your identity through your transaction password, so be sure to keep your transaction password well to avoid leakage. You bring unnecessary losses.

Investors engaged in securities trading can choose to open the following accounts:
(1) Cash account.For customers who open this account, all transactions are done in cash.When purchasing stocks through a broker, the full price must be paid in cash on or before the settlement date.Similarly, when selling stocks, the stocks must be handed over to the securities broker on or before the liquidation date, and the securities broker will receive the price into the account.my country currently adopts this type of account.

(2) Margin account.A margin account is also called an ordinary account. When customers who open this account buy stocks, they only need to pay part of the cash (that is, the margin) to buy all the stocks. The difference between the total price and the margin is paid by the securities firm. , The interest is calculated according to the market interest rate, and the purchased stocks are stored in the securities firm as collateral.

(3) Joint account.It means that two or more individuals jointly open an account with a broker. If one party dies, the other party can sell stocks without waiting for the court's judgment.This kind of situation is more common among relatives such as husband and wife, father and son, and two or more people who are not related can also open a joint account to reduce commissions.

(4) Trust account.This is a trading account specially opened for guardians of minors.The laws of many countries prohibit the ownership of a certain number of stocks if you are not of legal age.In order to resolve conflicts arising from inheritance or gifts from relatives and friends, securities companies set up this account, and the guardian of the minor will trade on his behalf.

(5) Authorized account.This is a special account.Opening this account means that the investor will authorize the securities company to buy and sell stocks on his behalf according to market conditions without prior consultation.This type of account is usually opened when the investor has complete trust in the securities firm.However, the laws of many countries prohibit the use of such accounts, and many securities companies also refuse to open such accounts in order to avoid disputes.

In addition to the cash account, several other accounts are not currently used in our country.

Make preparations before opening a stock account, know yourself and the enemy, and then you can enter the stock market and officially fight.

Four Tips to Select Profitable Stocks
Faced with a dizzying variety of stocks, how can you choose your favorite stock with the potential to make money?For investors who are new to the stock market, they need to master the following stock selection skills.

[-]. Choose stocks with excellent marketability
Each stock has its own characteristics, that is, stock nature.Good stock performance means that the stock is active. When the general trend rises, the stock price of the stock rises much, and when the general trend falls, the stock price fluctuates greatly. This kind of stock has a good public foundation, and everyone is willing to speculate in it.However, the stock price of stocks with poor stock properties is often sluggish, and will only fluctuate slightly with the general trend. It is often not very profitable to speculate on such stocks.

Each stock has its own habit, which is formed by long-term hype and is caused by the consensus of the public on it, and it is generally difficult to change.However, the nature of stocks is not forever. Sometimes the characteristics of some stocks may be changed through the long-term efforts of institutions or due to changes in the economic environment.

Almost all popular index stocks have good marketability. The chips of these stocks are well locked, and they are easy to fluctuate.The higher the degree of public approval, the better the attributes of the stock market, and the main market forces often intervene in these stocks and contribute to the flames.The main force is very familiar with the market characteristics of stocks that have been involved in a lot for a long time, and often chooses the same stock to intervene multiple times.This is an important reason for the uniqueness of individual stocks.

The factor of share capital structure is one of the important attributes of individual stocks. Over the years, individual stocks with small share capital are often easier to become the target of main speculation.An important reference factor for many major players to intervene in operations is the size of the share capital.Small stocks are easy to control chips, and light, thin, short, and small stocks have the characteristics of being easy to pull up, which is very convenient for operation.

Unpopular stocks can sometimes become stocks with amazing performance. Most unpopular stocks have experienced sudden outbreaks in the past.In other words, its stock nature is a sudden pull-up type.Most of the unpopular black horse stocks have few circulating chips and small share capital, so once such stocks have finished their attacks, their rises are often very considerable.

The characteristics of stocks are formed over a long period of time, and investors need to understand them for a long time before they can be fully familiar with them.When investors understand the characteristics of stocks and encounter certain situations, it can be very beneficial to predict the trend of individual stocks.Likewise, if a stock's personality changes, their changes can be quickly remembered.

(End of this chapter)