Heat Map, a practical function for newbies
As a trend investor, you must understand the types of sectors. Since most horse stock companies are cyclical stocks, their market is actually traceable.
In general, the stock price of a company is affected by several factors: 1) policy 2) event drive 3) profit
1) Policies
Assuming that today's government announced a reduction in the threshold for the second-largest horse homeland program so that other foreigners can buy properties locally, the main beneficiary sector at this time is probably industrial stocks.
2) Event-driven
Due to an accident at the largest local steel mill, domestic steel supply will be reduced by 50% in the future. At this point, the price of steel will definitely increase greatly, so any company that makes steel may benefit.
3) Profitability
Buying stocks is generally optimistic about the company's future prospects. You only buy the company's shares when you think that profits will get better and better. Assuming that the international resin (raw material for plastic packaging) prices have been falling continuously for half a year, they have fallen to a very low level. Forward-looking investors generally start paying attention to plastic packaging stocks because raw material costs will decrease in the future and profits are expected to increase (provided that demand remains unchanged).
At this point, you'll discover that as a newbie, it's important to know exactly what companies are in a specific sector because you can save time searching for them one by one. This is where the moomoo heatmap feature comes in handy. You can click on a field, as you can see in the image below:
Afterwards, you can see the overall trend in this field, such as the banking sector
If you continue to scroll down, you can see exactly what companies are in this field, and then filter the companies that meet your investment conditions from this list
This saves both time and effort
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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