Stocks can be divided into three categories: large-cap stocks, mid-cap stocks, and small-cap stocks according to the turnover. Then, when investors buy and sell individual stocks, should they choose large-cap stocks or small-cap stocks? How to choose? The following Kowloon Securities has prepared relevant content for your reference.
In the stock market, whether investors buy large-cap stocks or small-cap stocks depends on their investment preferences and market conditions.
Large-cap stocks have a lot of circulating shares and a large market value. It is difficult for the main funds to control the market. The fluctuation of stock prices is relatively stable, and the risk is relatively small. For some prudent investors, buying large-cap stocks is a good investment choice, like some Bank stocks, steel stocks, and brokerage stocks belong to large-cap stocks; small-cap stocks have less circulating share capital and a smaller market value, and the main funds are easy to manipulate the market. The stock price fluctuates greatly, and its risk and profitability are relatively large. Investors may choose to buy it, like some technology stocks listed on the gem are small-cap stocks.
When the market is relatively sluggish and investors lose confidence in investing, large-cap stocks will be pulled up to protect the market, and a large amount of funds will flow in. At this time, investors can consider buying some large-cap stocks in an appropriate amount; Under the current situation, a large amount of funds flow into small-cap stocks, driving up the stock price. At this time, investors can choose to buy some small-cap stocks.
Regardless of whether investors are buying large-cap stocks or small-cap stocks, the following trading techniques exist:
1. Follow the trend and carry out the operation of selling high and buying low
In the upward channel of individual stocks, investors should focus on buying; in the downward channel, investors should focus on selling; The stock is sold at a high level, and the operation is repeated to earn the price difference.
2. Reasonably control the position
Investors should formulate a certain investment ratio based on their own assets, for example, buy 1/3 of the position each time, so that in the process of losing money, investors have enough funds to cover positions and reduce the cost of holding positions to deal with risks .
3. Set the stop loss and take profit position
Investors can set stop-loss and take-profit levels according to some special positions to avoid greater losses caused by stock price declines. For example, set the stop-loss level at the previous low point of an individual stock, and set the stop-profit level at the upper high point.