Explaining the Stock Selection Criteria of an Investment Expert
There are many skilled investors in the stock market, each with their own set of stock selection criteria, which are typically developed through extensive practical experience. Today, we will explain the stock selection criteria of an expert from Winner Wealth Network, hoping to assist investors who struggle with stock picking.
Criterion 1: Free Float
The ideal free float (tradable shares) should be between 80 million and 250 million, with no impending lock-up share releases in the near term.
Criterion 2: Turnover Rate
The stock's turnover rate should be gradually increasing. A turnover rate exceeding 5% for the first time is a good sign, with the best scenario being a steady, moderate-volume uptrend.
Criterion 3: Daily & Weekly K-Lines
Look for stocks where the daily and weekly K-lines show a "crouching before leaping" pattern, with a breakout point confirmed by a surge in trading volume.
Criterion 4: Emerging Sector Trends
Newly emerging sector trends often have significant follow-through effects, provided they haven’t yet become widely recognized. Pay attention to leading indicators within the sector, such as recent "unicorn" concept stocks (excluding special themes).
Criterion 5: Tracking Period
Monitor the stock for three consecutive days. If considering a purchase, wait an additional two days to identify the optimal entry point, avoiding impulsive buys that may lead to losses.
Criterion 6: Market Conditions
The safest entry points occur when:
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The market transitions from a gradual decline to an accelerated drop, culminating in a morning crash followed by a sharp afternoon plunge.
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Or, during the early phase of stabilization after a prolonged decline of hundreds of points.
Criterion 7: Buying Strategy
Aside from buying during post-crash afternoon sessions, the safest window is between 2:20 PM and 2:40 PM. Additional requirements:
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The 60-minute K-line must show an impending breakout, sustaining the trend for at least two hours post-breakout.
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The price movement should have a 3%+ range, with daily fluctuations within ±2%.
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Scale into the position when buying, but exit with a single sell order.