1. Distinguish according to the market value of individual stocks. Generally speaking, large-cap stocks: the circulating market value is 50 billion and above, small-cap stocks: the circulating market value is generally 5 billion and below, and those with a market value in between are called mid-cap stocks.
2. According to the difference of circulating share capital. Generally speaking, large-cap stocks: the circulating share capital is greater than 500 million, small-cap stocks: the circulating share capital is less than 100 million shares, and those with a circulating share capital between 100 million and 500 million are called mid-cap stocks.
In addition, investors can also distinguish from the listed sectors. Generally speaking, the stocks listed on the main board are mostly medium and large-cap stocks, while the stocks listed on the small and medium-cap stocks include many small-cap stocks. For example, the current stocks starting with 002 Mostly small cap stocks.
Large-cap stocks have a lot of circulating equity 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. The main capital is easy to manipulate the market, and the stock price fluctuates greatly. Its risk and return are relatively large. Some aggressive investors may choose to buy it, like some companies in the entrepreneurial sector. Listed technology stocks are classified as small-cap stocks.
Regardless of whether investors buy large-cap stocks or small-cap stocks, the following trading skills exist:
1. Buying opportunity
Investors can buy when the technical indicators of individual stocks show a buy signal, for example, when the bottom divergence of the MACD indicator appears, or the morning star appears on the K-line, etc.
Or buy when there is major good news in individual stocks, for example, the company's profit growth announced in its financial report, the company's strategic cooperation with other companies or the announcement of acquisitions, etc.
2. Selling opportunities
Investors can sell when there is a sell signal in the technical indicators of individual stocks, for example, when the top divergence of the MACD indicator appears, or the evening star appears on the K-line, etc.
Or sell individual stocks when major bad news occurs, for example, a listed company is punished by the exchange, the performance of the listed company deteriorates, bank interest rates increase, natural disasters and man-made disasters, etc.