When novices study and judge the trend of individual stocks, they are often obsessed with technical indicators or eager to inquire about various news, while ignoring the most common, practical and reference data in the stock market - turnover rate.

In fact, turnover rate plays a very valuable role in judging the practicality and accuracy of various aspects of individual stocks in stock selection. I also mention turnover rate in many articles, so today I will give you a detailed analysis.

Understand the role of turnover rate and how to use turnover rate to select stocks.

What is turnover rate?

The so-called turnover rate refers to the ratio between the cumulative trading volume and the tradable volume of a certain security per unit time.

The larger the value, it not only indicates the active trading, but also indicates the sufficient degree of changing hands among traders.

The main force can only guide the turnover rate, but cannot determine the turnover rate, so the turnover rate is a true response to the capital pair.

Criteria for judging the level of turnover rate. Five methods for selecting stocks based on turnover rate: 1. The trend is king, buy in batches.

For example, in a bull market, short positions disappear and short-term corrections are new opportunities to build positions. Buy in batches and gradually build positions.

The general trends of different sectors will drive the trend rise and fall of individual stocks within the sector.

At this time, turnover rate will be just an auxiliary function.

2. Break through the average turnover rate by more than 2 times.

When pulling up, if a stock's turnover rate exceeds 10% that day (except for new stocks or stocks that have just been listed), it usually indicates that the main force has begun to take action during the session.

For example, Quanchai Power (600218) had a turnover rate of less than 1% when it fluctuated sideways in the early stage. On January 15, a turnover rate of 13.87% occurred during the rise, indicating that the main force has taken action.

Choose an opportunity to intervene.

3. The turnover rate at low positions is high, and the dealer washes the market.

The low turnover rate is very high, which does not mean that the main force is attracting goods. Especially when the stock price is still in a downward trend, it is often a sign of continued distribution.

For example, after the daily limit of Guangyi Technology (300356), there was a surge and a fall, and the turnover rate was as high as 11.35%, indicating that the upward trend was not over. This was just a washout by the market makers, and there would be a strong upward attack in the future.

4. Increased volume at the bottom and high turnover rate: Stocks with increased volume at the bottom have a high turnover rate, indicating that there are obvious signs of new capital intervention, and the room for future growth is relatively large. The more the bottom changes, the greater the upward selling pressure.

The lighter.

5. There is an unreasonable callback, and the main force lowers the price to attract funds: The main force in the low position usually cannot get many chips, so retail investors are most likely to be fooled when a stock breaks through a long-term downward trend. During the callback, the stock price is neither negative nor positive, and the turnover rate

When retail investors sell, the main force takes all the orders. The turnover rate at this stage is much smaller than when it rises, but the main force can get a lot of chips.

Real offer interpretation: 1. Daily stock turnover rate ① There are no bookmakers and only a few retail investors exist; ② After a certain stock has increased in volume, the stock price fluctuates sideways in the high area. If the turnover rate is low and the trading volume is small,

Then it means that the dealer has not yet planned to cash out the profits, and will hit new highs later.

2. When the daily turnover rate of a stock is between 3% and 7%, it indicates that the stock is relatively active, has a certain degree of popularity, and has obvious transactions.

The main market makers also participate from time to time, and the next new trends of the market makers must be judged based on the historical market conditions of the stock.

3. If the daily stock turnover rate is >7% or even >10%, it indicates that the stock is very popular, investors are very active in operations, and chips are changing hands quickly.

If this phenomenon occurs after a wave of rising prices, then the possibility of bookmakers distributing chips to cash out is very high.

Investors should be careful.

The level of turnover rate is a relative value, and its standards are different in different periods. Generally, the average daily turnover rate in bear markets can be set at about 2%.

If it is greater than 2%, it can be regarded as a stock with a high turnover rate, and if it is less than 2%, it can be regarded as a stock with a low turnover rate. The rise or resilience of stocks with a high turnover rate is greater than that of stocks with a low turnover rate.

In practical applications, excessive turnover rates do require attention.

However, when the turnover rate of large-cap stocks exceeds 10%, it is a state of caution, while the turnover rate of mid-cap stocks is around 15%, and that of small-cap stocks is above 20%.

What impact does turnover rate have on the trend of individual stocks? 1. After the low turnover rate of individual stocks has passed the active period, when the daily turnover rate is greater than 7% and continues to exceed 10%, it indicates that chips are changing hands rapidly and individual stocks will experience a sharp decline.

Soaring prices.

This will be the best time for investors to operate.

2. A high turnover rate occurs for a long time.

The emergence of high turnover rates indicates that short-term liquidity has been enlarged, market attention has increased, and stock prices are expected to develop upward.

3. A high turnover rate at a low position, an exciting wash, indicates that the main force has a high probability of opening a position.

Grasp the buying and selling point through the turnover rate 1. Determine the buying point of the stock through the turnover rate. If the bottom stock has low turnover for a long time, and suddenly one day the turnover is high and the volume rises, it means that the possibility of new funds entering the stock is greater. At this time, you can

Buy on dips when there is a negative line of a pullback after heavy volume.