Stocks are a type of valuable securities issued by listed companies to shareholders as shareholding certificates in order to raise funds. Investors holding stocks are considered shareholders, Having the right to enjoy company assets and equity. The company raises funds for business development by publicly issuing stocks, And investors earn profits and increase portfolio diversification by purchasing stocks.

Stocks are mainly divided into growth stocks and value stocks

(1)  Growth stocks

Growth stocks refer to stocks that are in the growth phase, And possess sustained competitiveness, Stocks of companies with huge growth potential, Holding such stocks can share the benefits brought by the growth process of listed companies. One important reason why some investors prefer growth companies is that they believe these companies have better opportunities to expand their business scale in the coming years, Acquire more market share, More competitive.

(2)  Value based stocks

Value stocks usually refer to stocks issued by relatively mature companies, The characteristic of stocks in this type of company is stable returns, Undervalued value, High security, But the price to earnings ratio, The price to book ratio is usually low. therefore, Compared to growth stocks, Value stocks have low risk and volatility. in addition, Most value stocks pay dividends.

generally speaking, The price of the company's stock has been fluctuating all along, Not only affected by the most basic supply and demand, The direct impact on the company's performance and profitability. Macroeconomics, Political factors and market sentiment are also key factors in the volatility of stock prices.

Supply and demand

The supply and demand relationship is the main factor determining stock prices. Supply refers to the market supply of specific stocks, And demand refers to the degree of market demand for the stock. Low supply and high demand will drive up stock prices, High supply and low demand will lead to a decline in stock prices.

Disclosure of Company Information

(1) Company financial report: Company Annual Report, Half year report andDisclosure of quarterly report, Due to the inclusion of the company's performance during a specific period of time, Important information such as profitability and future development direction, Often causing fluctuations in stock prices. When information indicates that the company's performance is good or the sector it belongs to is expected to grow, The likelihood of investors purchasing stocks has increased, The demand for company stocks in the market will also increase, The stock price will also rise accordingly.

(2) Company Announcement: Including changes in the company's management team, Acquisition of the company, Merger and reorganization resolution, Corporate behavior information such as stock repurchase and dividend distribution.

Macroeconomics

During periods of economic prosperity, Stock prices often rise; And during the period of economic recession, The stock price may fall.

interest rateThat's rightAffects stock pricesImportant factors. When interest rates decrease, Individual consumer spending increases, This in turn leads to an increase in the profitability of the enterprise, And enterprises can operate at lower borrowing costs, Acquisition and expansion financing, Thereby enhancing future profit potential, Therefore, this will lead to an increase in stock prices. contrary, When interest rates increase, Individual consumers may not consider purchasing products with variable interest rates, Like a house, Cars, etc. The reduction in consumption will indirectly cause the income of enterprises to shrink. in addition, Bank interest rates increase, Enterprises are unwilling to obtain funds from banks at high borrowing costs, This leads to a decrease in business expenses and a slowdown in business growth, Therefore, it has a negative impact on the performance of enterprises in the stock market.

International Politics and Trade Relations, The impact of natural disasters and commodity prices on the stock market is also very significant.

Corporate behavior (Corporate Action) It refers to being initiated by the company, Behavior that may have an impact on the company's issued securities. Common corporate behaviors includedividend , Stock split, Joint stock, etc.

dividend

Dividend payout refers to the act of a company distributing a portion of its profits to shareholders. Normally, There are two ways to distribute dividends, They are stock dividends and cash dividends, respectively. Stock dividend payout refers to a company paying dividends in the form of stocks, Cash dividends refer to companies distributing dividends to shareholders in cash. The dividend payout of listed companies reflects the positive side of the company, Helps maintain investors' trust in the company. under normal conditions, Listed companies that distribute dividends are often mature and reputable companies.

Stock split

Stock split refers to a behavior in which a listed company increases the number of circulating shares by issuing more shares to existing shareholders. for example, Apple Inc. will sell its stock to1: 4The form of stock split, This means that1High denomination apple stocks were exchanged for4Apple stocks with lower face value. commondepartmentconductStock splitThe result of the behavior is an increase in the total share capital, However, shareholder equity and the total market value of the company remain unchanged. The reason why a general company decides to split its shares isThe stock price has risen to an excessively high level, Or when the price level exceeds that of similar companies in the same industry, Stock splits can make it more affordable for small investors to purchase the company's stocks, It can also stimulate the liquidity of stocks.

Joint stock

Joint stock refers to a company reducing the number of shares held by each shareholder, But the act of increasing the value per share proportionally. Joint stock acquisition will not directly affect the company's market value, But it could be a signal that the company is in trouble.

You hold over-the-counter derivatives, This does not mean actually owning stocks, So you don't have the right to vote, Or any subscription rights, The right to issue and split shares, etc. however Mitrade Will takeResponse measurescomeTry to minimizeThe impact of the behavior of a few companies on your trading position, The measures includeYour account balanceadjustment, At that time, you can check the adjustment amount in the fund flow (If applicable) .

Stock analysis refers to investors analyzing a company's past data through analysis, Assessment and prediction, The method for making stock buying and selling decisions. Stock analysisThe basic strategyThere are mainly two types: Fundamental analysis and technical analysis.

Fundamental analysis

It refers to the analysis of factors such as economic and financial conditions, Attempting to find the intrinsic value of stocks. The ultimate goal is to obtain the actual intrinsic value of the stock, And compare it with the current stock market price, To determine whether the current market price of the stock is overvalued or undervalued. Investors often buy stocks that are undervalued by the market, And sell stocks that are overvalued by the market.

Fundamental analysis mainly includes two aspects: Qualitative analysis and quantitative analysis

(1) Qualitative analysis includes analyzing the business model of the target company, Market competitive advantage, The management efficiency, corporate governance ability, and market sentiment of the company's management team.

(2) Quantitative analysis refers to analyzing the financial statements of listed companies for each quarter or year.

Usually, fundamental analysts combine the two, Then make the final investment decision. In the process of stock analysis, The most important factors affecting the actual intrinsic value of stocks are the financial condition of the company and the performance of the stock in the market, The following is a fundamental analysisCommonly usedImportant indicators:

In addition to the above indicators, The company's balance sheet and cash flow are also the focus of fundamental analysis. in addition, The business operation indicators of the company are also an extremely important part of stock analysis. however, Different industries, The operational indicators are also different. as, The retail industry relies on inventory turnover rate, Sales per square foot and customer retention rate are used as indicators to measure business operations standards, For some commercial operation indicators of companies mainly engaged in subscription business, including average user revenue, Customer lifetime value and user acquisition cost, etc. Most of the business operation information will appear in the annual and quarterly reports of listed companies, Therefore, it is very important for fundamental investors to carefully read and browse the annual and quarterly reports as well as company announcements.

technical analysis

commonlyTend to study historical data of stocks, Using stock price trends and trading volume to analyze and predict the future direction of stock prices. Technical analysis is mainly divided into two categories: Technical graphics and technical indicators.

(1) Technical graphics

It refers to the main form of technical analysis, Traders attempt to determine the support and resistance levels on the market by observing specific patterns. Technical graphics are mainly supported by psychological factors, It is a prediction that a stock will rise or fall above a certain price within a specific period of time. in addition, When the resistance level is broken through, May lead to a significant increase in trading volume, Thereby driving up stock prices.

(2) Technical indicators

It is a technical analysis method that applies mathematics and statistics to stock prices and trading volumes. The most common technical analysis indicatorsas follows:

a.  Moving average line

This indicator can help traders clearly identify market trends. When the short-term moving average intersects with the long-term moving average and is above the long-term moving average, This is usually considered a bullish trend.

b.  Smooth Moving Average of Differences and Similarities (MACD)

The relationship between two moving averages representing asset prices, yesExponential moving average of one fast and one slow (EMA) Calculate the difference between themof. "fast" Refers to a short period of timeEMA, and "slow" It refers to a long period of timeEMA, The most commonly used is12and26dayEMA.

under normal conditions, WhenMACDbypositiveWhen, express12dayaveragehigher than26dayaverage, And when the two further deviate, The value increases, At the same time, this also means that the upward momentum of the stock is increasing. On the contrary, NegativeMACDValue representation12Daily moving averagestay26Daily moving averageBelow, When both furtherWhen deviating, Negative values will increase, thisJustIt means that the downward momentum is increasing.

WhenMACDLine up crossingThe signal line (Commonly used9dayEMA) When, giveA bear market signal, Indicating that it may be a saleThe timing. But whenMACDWhen the line crosses the signal line downwards, This indicator gives a bullish signal, This indicates that the price of the stock mayWill usher in an upward trend.

c.  relativeintensityindex (RSI)

It is a commonly used momentum indicator in technical analysis,  Can reflect the level of market prosperity during a certain period and evaluate the overbought or oversold status of stock prices. Theory suggests that, No matter how the price changes, All in0-100between. RSIThe value is high30-70Changes between, usually80even to the extent that90It is considered that the market has reached an overbought state, At this point, the market price will naturally fall and adjust. When the price drops to a low level30The following are considered oversold status, The market price is expected to rebound and rebound.