Secret 1: Buy low and sell high for large stocks

As large companies issue stocks, their characteristics are very obvious, and the upward trend of the stock is slow and relatively stable. Therefore, investors who generally seek quick returns do not easily put their money into the purchase of such stocks. Suitable for investors who are new to the stock market to try, they can make an initial attempt by observing its cycle of change at a time.

Tips for speculating in such large stocks are.

(1) One should pay attention to current events related to large companies and buy stocks during periods of recessionary low prices, while selling in time when there is a significant improvement in the performance of large companies and their share prices rise significantly.

(2) Large stocks will encounter greater resistance to their rise when they reach their past highs, and stronger resistance to their fall when they reach their past all-time lows.

Secret 2: Timing is most important for small and mid-cap stocks

Small and medium-sized stocks are less capitalized than large stocks, so their characteristics show a strong sensitivity to ups and downs, and are the main object of concern for large stock owners. Because of its susceptibility to the impact of positive or negative news, a large rise or fall in share prices, easily attracting long or short main large investors to fight each other news war, to achieve a lot of profit.

The tips for speculating in these small and medium sized stocks are

Should keep up with current events and patient attention, small and medium-sized stocks change rapidly, investors need to fully wait for the stock out of the trough period, began to turn into an uptrend, and environmental improvement trend to buy; investment in small and medium-sized stocks, as long as you can effectively grasp the market, current events and methods, in 1 to 2 years to obtain more objective benefits.

Secret 3: growth stocks need to be carefully selected is the core

As a growth company, its initial capital may be less, but the development potential is greater, suitable for investors who have more attention to the industry and have some experience to try. Choosing the right growth stock will also yield much faster returns than other stocks, but the benefits and risks go hand in hand.

Tips for speculating in these types of growth stocks are.

(1) You should choose growth industries that are more supportive of national policies, and choose exactly the growth stocks with smaller capitalization among the many stocks in the industry, which have greater growth expectations.

(2) Select stocks with a high growth rate in the last 3 years. Growth stocks generally have an earnings growth rate of more than 1.5 times that of all other stocks.

(3) Growth stocks should be sold in time when the stock market is frenzied and a large number of investors enter, because growth stocks fall more in bear markets.

The right time to invest and knowledge of current events for different industries and companies are important principles for making money in the stock market. So in general, the tips for investing in the bull market phase are to choose different types of growth stocks in different periods. You should invest in hot stocks in the first phase of the bull market, while in the middle phase you should choose to buy smaller growth stocks, and when the stock market is in a frenzy phase, you should promptly dump the growth stocks and keep the less risky ones.

（Writer：Tick）