In the stock market, investors always want to find an effective way to pick stocks to get a better return on investment. Among the many stock selection formulas, there is a highly regarded formula called the "Duck Head Stock Selection Formula". This formula was created by a retired veteran stockbroker, who is known as "Duck Head" for his excellence in stock picking.
The Duck's Head formula is not a complex mathematical model, nor does it have any sophisticated theoretical foundation. Its core idea is to combine fundamental and technical analysis of a stock in order to obtain more comprehensive stock information. In this formula, Old Duck Head emphasizes an important concept: humanization.
Humanization means not only focusing on numbers and data, but also fully taking into account human emotions and cognitive factors in the stock selection process. Old Duck Head believes that the stock market is made up of people, and their emotions and psychological state will directly affect the trend of stocks. When selecting stocks, we can't just limit ourselves to numbers and data, but also understand the background of the company, the development trend of the industry and the change of market sentiment.
Old Duck Head emphasized the fundamental analysis of a company. He believes that when choosing a stock, it is important to scrutinize fundamental indicators such as a company's financial position, business strategy and competitive advantages. These indicators can tell us a company's profitability, growth potential and risk level. Only with a clear understanding of a company's fundamentals can we judge its long-term investment value.
The old duck head focuses on technical analysis. He believes that the price movement of a stock is determined by supply and demand and market psychology. Through technical analysis, we can understand the trend, support and resistance levels of a stock, and thus determine the appropriate time to buy or sell. Old Duck Head often uses simple and effective technical indicators, such as moving averages and relative strength indicators, to assist his technical analysis of stocks.
Old Duck Head emphasizes the importance of market sentiment. He believes that market sentiment can have a significant impact on the movement of a stock. When market sentiment is optimistic, stock prices will rise; when market sentiment is pessimistic, stock prices will fall. Old Duck Head will pay close attention to the hot spots and key events in the market, as well as changes in investor sentiment, in order to adjust his investment strategy in a timely manner.
Old Duck Head's stock picking formula emphasizes a humanized stock picking mindset. He believes that only by fully understanding the fundamentals of a company, familiarizing himself with the technical aspects of a stock as well as grasping the market sentiment, can he make better stock picks. In practice, Old Duck Head suggests that investors pay more attention to potential growth stocks and trade with a strategy of buying low and selling high when the market is volatile.
The Old Duck Head stock selection formula is not foolproof, nor can it guarantee 100% success. But it provides a humane way of thinking about stock selection that can help investors analyze stocks more comprehensively and improve the accuracy and success rate of stock selection. When investing in stocks, we may wish to learn from the old duck head stock selection formula, combining fundamental analysis, technical analysis and market sentiment, with a view to obtaining better investment returns.