There are many factors affecting the stock trend, which need to be analyzed together. Different factors have different effects on stocks, some are positive and some are negative. Today, Bian Xiao sorted out some stock types that novices should buy. Let's have a look!
The types of stocks that novices should buy.
Blue chip: refers to the stocks of companies with a long history, large scale, stable operation and strong profitability in the market. These companies are usually industry leaders, with low risks and relatively stable returns.
Index fund: refers to an investment tool constructed according to a specific index, such as the Standard & Poor's 500 Index and the Nasdaq Index. By purchasing index funds, you can get a widely dispersed portfolio and reduce the risk of individual stocks.
Growth stock: refers to the stock of a company with high growth potential and expanded market share. These companies are usually expected to achieve higher share price growth in emerging industries or innovation fields.
Dividend-paying stocks: refers to those company stocks with stable dividend policy and cash dividend characteristics. These stocks usually perform well in the downturn of the economic cycle and are suitable for investors who pursue stable cash flow.
Detailed process of buying stocks
Study and research: Understand the basic knowledge and investment principles of the stock market, study and analyze the fundamentals of different companies, and formulate their own investment strategies.
Opening a securities account: select a reliable brokerage firm or online trading platform, provide them with the required identification and materials, and complete the application for opening a securities account.
Set up trading accounts and funds: transfer funds into securities accounts and set up trading risk tolerance and fund management rules suitable for you.
Choose stocks: according to your investment strategy and preference, you can get relevant information through company financial reports, news and analyst reports.
Place an order for purchase: log in to the securities account, find the target stock, enter the purchase quantity and price, and then submit the purchase order. Pay attention to confirm the transaction information, fees and other details.
Monitoring and management: after the purchase is completed, pay close attention to the stock market dynamics and company announcements, adjust investment strategies and decisions in time, and manage risks reasonably.
Transaction settlement and position holding: after the transaction is completed, the brokerage firm will settle the transaction and transfer the ownership of the stock to your securities account. You can check your position at any time and take corresponding actions when necessary.
Precautions for novices to buy stocks
Generally speaking, novices need to pay attention to these points when trading stocks, learn stock knowledge, understand the logic of stock operation, learn to control their emotions, avoid being influenced by greed, formulate stock trading strategies, strictly implement them, follow suit and avoid sailing against the current.
Learn stock knowledge and understand stock operation logic.
Novices in stock trading need to have a certain understanding of stock knowledge. You can't just die in the stock market without knowing anything. It's easy to step on the pit. Beginners need to know the time of stock trading first. The stock trading hours are from Monday to Friday, from 9: 30am to11:30am and from 13 to 15 in the afternoon. There are no transactions on weekends and holidays. In addition, our bank-securities transfer is also closed on weekends and holidays.
Secondly, we should know the handling fees of stock trading, including stamp duty, transfer fees, securities management fees, commissions and so on. Among them, stamp duty is not required when buying, but only when selling. Except for commission, other expenses are basically paid in a fixed proportion. The commission can be negotiated with the securities company, but the lowest price for each transaction is 5 yuan.
Then it is necessary to understand the underlying logic of stock price rise and fall. The circulating shares of each listed company are fixed in a certain period of time, that is, the number is limited, which is a premise. When the supply of stocks is less than the demand, the price of stocks will rise. When the stock supply exceeds the demand, the stock price will fall. The supply here refers to the number of investors who hold stocks and the demand refers to the number of buyers who actively buy stocks.
The reason why the stock price will rise is because the demand increases and the supply decreases. If investors want to buy stocks, they have to raise the price to get them. The reason for the decline in inventory is the increase in supply and the decrease in demand. If investors who hold stocks want to sell stocks, they must lower their prices before they have a chance to sell them. On this basis, promote the rise and fall of stock prices.
Finally, clarify the trading rules of stocks. In the A-share market, the trading of stocks is T+ 1, which means buying today and selling the next trading day. Negotiate in the order of price priority and time priority.
Learn to control your emotions and avoid being influenced by greed.
Many investors will be influenced by their own emotions to a great extent when trading stocks, that is, they can't objectively analyze and judge and make decisions according to their own subjective ideas. Sometimes it's all based on feelings, without any data or reasons to support it.
After the stock falls, I don't know how to stop loss, and I have some unrealistic ideas. I always thought my stock would rise back, but it fell again and again. When the stock rises, it is controlled by its own greed and always wants to earn more. As a result, it failed to sell in time at a high level, resulting in losses.
Smart investors always make limited profits, and profiteering can't last long. In the stock market, it is not difficult to make money, but it is difficult to achieve lasting profit. The main reason is that we cannot control our greed.
Formulate stock trading strategies and strictly implement them.
Because we are easily influenced by our emotions when trading stocks, we need to make our own investment strategy according to our own investment experience and do it in strict accordance with our own investment strategy.
For example, under what conditions to start, under what conditions to sell, what is the take profit point, and what is the stop loss point. Combined with the fundamentals, news, and technical aspects of individual stocks, you can't buy in large quantities just by a single index, but you can buy or sell in batches.
Take advantage of the trend and don't sail against the current.
As the saying goes, the general trend of the world is vast, and if it is suitable, it will prosper, and if it is contrary, it will die. It is the same for us to buy stocks. In a bull market, most stocks will go up, and in a bear market, most stocks will go down, so we need to be good at seizing opportunities.
The same is true for individual stocks. Everyone wants to buy low and sell high, but who can do it? Except for the real bosses, it is difficult for us ordinary people to do it. So we need to conform to the trend of the stock to judge the buying and selling points, and don't compete with the trend of the stock.
Obviously, a stock is on the rising channel, so you have to buy it and go down. Obviously, a stock is in a downtrend channel, and you have to buy it to go up. Take advantage of the trend and avoid sailing against the current. Those who can change the pattern are lucky, but for most of us ordinary people, there is no need to end up with ourselves.
Can novices make money by buying stocks?
Novices can also make money by buying stocks. Anyone can make money in the stock market, but he may also lose money. Just relative to the veteran, the novice may lose more because of the lack of trading experience.
Fresh blood flows into the stock market every day. There are thousands of reasons why people enter the stock market, but in general, they all hope to make some money in the stock market. No matter what kind of dreams we have, we need to know that the stock market is relatively rational and will not change because of personal thoughts.
In a certain period of time, luck may make people swell, but we must be clear that as long as we are still in the stock market, what we earn is not necessarily our own. Therefore, we still have to study step by step, be down-to-earth and make progress step by step in order to win. Investment is risky, so be cautious when entering the market.
What is the stock turnover rate?
The turnover rate in stocks refers to the turnover frequency of stocks in the market in a certain period of time, also called turnover rate. The turnover rate is one of the important indicators to reflect the stock activity, from which we can see the strength of stock liquidity.
The higher the turnover rate, the more active and liquid the stock is. Conversely, the lower the turnover rate, the lower the stock activity and the weaker the liquidity. The turnover rate is also a symbol of popularity. The turnover rate is too low, indicating that this stock is an unpopular stock.
According to the selected time range and the nature of the whole sample, there are many types of turnover rates, similar to daily turnover rate, weekly turnover rate, total turnover rate and individual stock turnover rate. The calculation formula of turnover rate is: the ratio of the number of shares traded in a certain period to the total number of shares circulating in a certain period.
Different turnover rates indicate the frequency of stock trading in different time periods. According to investors' own habits, we can choose the turnover rate in different time periods as a reference. Through the change of turnover rate, we can judge the future trend of stocks to some extent.