How to Select Stocks and Manage Funds in Short Term Operation

How to Select Stocks and Manage Funds in Short Term Operation

There are two types of stock investment: long-term investment and short-term investment. For many white-collar workers or small business owners,they may not have enough time to analyze complex stock curves and economic indicators. It’s the best way to make a long-term investment in a few blue-chip stocks with high value. However, short-term operation is the best way for stock investors with plenty of time or professional stock traders. The short-term investment is to earn the short-term fluctuation of stocks, not to care about the growth of the company’s performance.

As expert Mike suggested, you can use the indicators of enterprise fundamentals research to select stocks, such as PE, ROE.  Mike also suggested using the 18-week moving average, the technical form of disaster, seasonal factors, and other technical analysis methods. In a word, he will suggest that you choose practical ways that are helpful to judge the short-term stock price trend.The main factors influencing stock price in the short term are investor sentiment and opinions, or some social emergencies. You can choose to enter when the market is overly underestimating a stock and sell when the market is too optimistic. The investment targets are those stocks with stable profit growth, low debt, and insider holding while avoiding the shares of skyrocketing stocks, hot stocks, and emerging economies. Because the company with the law of value can better judge whether the stock is overvalued or undervalued.

In addition to the choice of stocks and the management of funds, Mike also gave a lot of other suggestions related to investment. Mike shares his approach to money management and shows how real investments work. Because his investment strategy is based on the winning rate brought by data statistics, in terms of probability, every investment also has the likelihood of loss. The most significant risk of investment lies in the return of performance and loss of principal caused by the failure of short-term finance. The risk of investment can be controlled by controlling the maximum performance withdrawal through a reasonable fund management method.

As long as we do an excellent job in stock selection and capital management, the return of short-term investment can be relatively high, which will be far higher than that of long-term investment. But the selection of time is another important factor, Black Swan events often bring some risks to short-term investment. There is no invincible trader in the stock market.

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Michael Aniston

Michael started with a master's degree in finance before he went into technology and coding. He is now a freelance journalist and video producer living in Berlin, Germany. When he doesn't write, he will travel many countries.