What is the most correct operation when the turnover rate and turnover of stocks are high?

If the turnover rate and turnover of a stock are particularly high, how to operate it correctly? Next, I will share some of my experiences with you.

1. turnover rate and turnover First of all, what is turnover rate and turnover? The turnover rate is the ratio of changing hands. For example, the total share capital of a stock is 1 1,000,000 shares, and one day, 1 1,000 shares were traded, that is, some people bought and some people sold this 1 1,000 shares. In this way, 1 ten thousand shares is one of 1 ten thousand shares, and today's turnover rate is 10%. Generally speaking, the higher the turnover rate, the more active the trading of this stock.

What's the turnover? Volume refers to the number of transactions in the stock today. In the example just mentioned, 1 1,000,000 shares were sold, so this 1 1,000 shares is the number of transactions. But the volume is usually based on the number of lots, that is, one * * sold 1 000 lots, 1 share equals 1 lot.

2. Volume decline If a stock continues to rise to a high level, a huge negative line appears, accompanied by huge volume and huge turnover rate. A situation like this is usually a sign that the main force is shipping at the top. After seeing such a situation, we should leave the market in time to prevent a continuous plunge in the future. Because the main force will not continue to rise after the goods are sold out. Moreover, the mood of the market will also start to change from good to bad together. Then basically there will be a decline in the future.

Third, there is another situation. The turnover rate and trading volume of a stock have increased, but they have gone up. This situation is usually the performance of retail investors selling and main buyers buying. Explain that the main force is willing to eat these goods and go up, which is a signal of rising. After this happens, there may be another wave of rise in the future.

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