First, what do you think of the flow of funds?
You can see the flow of funds from the turnover and the ups and downs list. Because the top 20 to 30 stocks in the trading volume list displayed in the stock trading software are the hot spots of capital flow, which can generally reflect the flow of mainstream funds. And you can also pay more attention to whether these stocks have some similar characteristics or whether they are concentrated in certain sectors and whether they occupy the ranking for a long time.
Of course, the ups and downs list is also very important. The stocks that initially started the market were among the top gainers, and the volume was enlarged, which often had the most demonstration effect.
In addition, we can also reverse the flow of funds through stock price changes. For example, the transaction volume generated when the stock price rises is usually defined as capital inflow; The volume generated when the stock price falls will be defined as capital outflow.
Second, what is the opportunity cost of capital?
The opportunity cost of capital refers to the cost of choosing the right opportunity when you have two different plans in front of you and give up the interests or gains lost by the other one because you chose one. The premise of applying the concept of opportunity cost to economic analysis is: 1, resources are scarce, have multiple uses, are fully utilized and can flow freely.
Opportunity cost generally refers to one of the biggest losses after making a choice. Opportunity cost will change with the change of payment price. For example, when the preference or value of the abandoned option changes, the value gained will not change the opportunity cost. However, if you give up the option with the highest value (first choice), then the opportunity cost will be the first choice. When making a choice, you should choose the option with the highest value (the option with the lowest opportunity cost) and give up the option with the highest opportunity cost, that is, the more you lose, the smarter you are.