FUTUBULL Help Center-The rate of changing hands in advance of the increase in price can be seen in mystery.

The rate of changing hands in advance of the increase in price can be seen in mystery.

When general investors (especially novices) are studying and judging the trend of individual stocks, they are often obsessed with technical indicators or keen to inquire about various news, while ignoring the most common, most practical, and most referenced data-changing hands rate.

Turnover rate is also called turnover rate. It is an important indicator that reflects whether a stock’s trading status is active or not, and measures the degree of circulation of orders. It is usually expressed as a percentage of the number of shares traded in a certain stock to the total equity. For example, when the total share capital of a certain stock is 10 million shares, when the cumulative number of shares traded reaches 10 million shares, we say that the turnover rate of the stock is 100%. I was bought (sold) again. However, since there are tradable shares and non-tradable shares (such as state-owned shares and legal person shares) in the Chinese stock market, the calculation should be based on the actual tradable shares, otherwise the transaction status cannot be truly and accurately revealed.

In addition to calculating the turnover rate by equity (transaction volume), another method can also be used to express it, that is, the transaction volume — the total transaction amount in a certain period (for example, one month) and the market price of equity during the period The total value (in China is the total value of the stock market price) to display. Since the total market value here is not fixed, the methods and requirements adopted here are different, so I won’t repeat them here. General investors can use the former method to calculate the number of shares.

So how to use turnover rate to judge the trend of individual stocks? To put it in perspective, the turnover rate is like the horsepower of power in physics: the greater the horsepower, the faster the car runs; the greater the turnover rate, the more powerful the individual stocks are. Therefore, stocks with a high turnover rate are also highly active. On the contrary, it is "unpopular stocks." In the Shenzhen and Shanghai stock markets, we can often see some stocks called "dead stocks", lying at a certain price for a long time, and only a few less than 100,000 or even tens of thousands of shares are traded in a day. This is the case.

But as the so-called "quiet and extreme thinking", if a stock that has been trading sideways for a long time and has been driven into the "forgotten corner", after a sufficient change of hands (Biru said that the turnover rate has reached 50 or 60 To seventy to eighty), suddenly heavy volume, it means that this stock may "do not fly, soar to the sky", or at least show some performance. Because of the large number of long-term changes of hands, the cost of investors purchased in different periods tends to be highly consistent, and the driving force for the decline is almost zero, and it is no longer to fall. At this time, if there is an opportunity or subject matter that can be triggered, it is easy to "just stir it up". However, to intervene in such "hibernation stocks", it is best to follow up when the heavy volume starts, so as not to buy the "cold palace" sent to "life imprisonment" too early.

Once the stock price starts, it cannot be achieved without the support of turnover rate. The more positive and thorough the handover, the more brisk and jubilant the stock price rises. Because profit orders are constantly being cleaned up in the process of changing hands, the average cost continues to increase, and the upward pressure on the upside is also greatly reduced. The turnover rate at this time is like a fuel gauge on an airplane. The more abundant the stock price, the farther it will go.

In that case, can you say in general terms: the higher the turnover rate, the higher the stock price will rise? ———No. This is true when the stock price has not risen very high and is still in the stage of rising. However, when the stock price has risen quite high (for example, it has doubled to several times) and is far away from the cost line of the dealer's position, this is not necessarily true. Not only is it wrong, but on the contrary: a high turnover rate becomes a signal for shipment. We often say that "the amount of the sky sees the sky price" refers to this situation.