Under normal circumstances, the stock price falls in a low volume, which is considered as the performance of the dealer's shipment. After a low-volume decline, there are two possibilities, high-volume opening or high-volume shipment, which require specific analysis of specific problems of investors.
First, low-volume decline: the low-volume decline of concept stocks is such a phenomenon. While the stock price continues to fall at a low level, the turnover rate rises, accompanied by the increase in trading volume, of course, relative to the previous trading days.
Second, the low-volume decline: the operation of the low-volume decline of the stock proves that the decline of the stock is very strong. Generally, after the emergence of major bad news, the volume of transactions will fall. In fact, sometimes it is also an irrational selling behavior, which can rebound when the plunge is too large.
Third, the low volume fell: positions and trading volume rose rapidly in the short term. Low positions are generally held slowly, unless there are particularly favorable or plate opportunities.
The characteristics of low-altitude and large-capacity flight are: the turnover increases rapidly in a short period of time, and the daily turnover rate remains above 5% continuously. At a relatively high level, the turnover will be above 10%, and there will be no ups and downs in the meantime, and the process of volume increase is a one-stop process. The stock price is obviously low, which fully shows that there are funds fleeing by beating.
Extended data:
Inventory decline factor
Liquidity contraction
When liquidity tightens, the stock market usually falls. However, such a decline generally has little impact on the company's core competitiveness and intrinsic value. But the tightening of liquidity often indicates the rise of inflation in the future, which is harmful to all enterprises.
Buffett analyzed the influence of inflation on stock investment in detail through his article How Inflation Deceives Stock Investors decades ago. Buffett's conclusion is that stock is actually an "equity bond", and its internal rate of return is about 12%. When inflation comes, both ordinary bonds and "equity bonds" will be hit.
Negative event message
Many times, negative news does not really affect the company's performance, but it has a huge psychological impact on investors. Faced with negative news, people think that their future performance will definitely be adversely affected, so they sell their stocks and their share prices fall.
Negative news, according to the negative degree, will also be a very strong catalyst for stock price decline. The problem with negative news is uncertainty. Because people hate risk and uncertainty, negative news tends to push stock prices down.
The analysis of negative news is very difficult. The information is likely to be very vague, even wrong, and cannot be quantified. At this time, we can only judge by studying the basic work done by the company.
Whether the events described in negative news endanger the "moat" of enterprises and weaken the core competitiveness is an accidental event. Whether the management of the company is experienced, brave in taking responsibility and able to face it calmly. What will consumers think of the company? Tylenol poisoning of Johnson & Johnson in history caused a serious crisis.
However, as a great enterprise, Johnson & Johnson has fully recovered all Tylenol products and restored consumer confidence. Johnson & Johnson not only fully recovered from this incident, but also established a good image of a responsible enterprise in the hearts of consumers. The blow of melamine made Sanlu beyond redemption.
Baidu Encyclopedia-Stock Falling