What is good?
We think it can be summed up in one sentence: the benefits that can improve the future value of the company are really good. Judging from the law of value, in the long run, the stock price fluctuates around the true value, and the true value of the stock is the direct embodiment of the company's value. For example, the company made money by investing abroad, its product sales increased, its net profit increased, it signed a big order and bought the company at a premium, and its new product development was successful. As long as these news can make people expect that the value of the company will increase in the future, it will definitely be reflected in the stock trend.
The degree of benefit is high or low.
A stock may have various benefits, which will greatly improve the company's performance, and the stock price trend will be divided into strong and weak points. For example, a poorly managed company was acquired by a well-known large company at a large premium and listed through backdoor. Obviously, the company's shareholders' meeting has benefited a lot, and the performance of backdoor companies after listing is also worth looking forward to, because there are many examples of such advantages becoming bull stocks. For another example, the company's annual report performance increased by 50%, and this news has little impact. On the one hand, the main force may have long known that the value of news has been reflected in the stock price. Secondly, the growth rate is roughly in line with expectations, and there is no big change compared with previous years.
Is the main fund recognized?
Stock speculation is expected to be poor. If the main fund thinks that the degree of profit is limited, which is in line with previous expectations, or is not worth mentioning compared with the positive of other stocks, it may not intervene immediately. There is a worse situation. If the stock price position is relatively high, which has greatly exceeded the reasonable valuation level, the main force may think that the banker wants to use the high position to cash out, even before the banker starts, and then the stock price may plummet.
Is the market environment suitable?
When the market environment is not good and the main indexes keep falling, making big profits may not be useful. Some stocks were suspended when the market was good, and the result was a perfect escape from the market that should have soared. After the resumption of trading in a month or two, the market has ended. Under the influence of panic, the market has plummeted from time to time. At this time, big profits don't work, and people just want to lose less and get away with it. Therefore, on the first day of resumption of trading, stocks often open at a daily limit, and as a result, they return to their original shape before the close of the day.
Moreover, some bookmakers often play tricks to boost the stock price by releasing good news in the early stage, and then issuing announcements such as restructuring failure when cashing out, turning good into bad. Retail investors want to cry without tears, and you have nowhere to reason.
So remind everyone that it is not necessarily reliable to borrow good news to stock. Unless you have a way to know the news in advance, buy it before it is announced. Otherwise, it is better to follow the trend less.