Without further ado, let me teach you the method below.
Firstly, this method is used to target popular strong stocks and game with the limit up board. If you engage in short-term trading by buying at the bottom of the limit down board or buying at the end of the day and selling at a high price the next day, you will definitely not make a lot of money. Why do speculative investors like to invest in stocks that have reached their limit up, hit the board, and become leading stocks? Isn't it because these types of stocks make money?
Secondly, what kind of strong stocks should we make? My viewpoint is also very clear, do the limit up the day before.
Some people may wonder, after hitting the limit up the day before and buying again the next day, isn't it chasing higher? This question is also a false proposition. If the potential increase of a stock is 30%, can we buy it at 15% and still chase after it? Height is relative, not absolute.
Currently, there are nearly 4000 A-shares, while the daily limit up stocks are only around 50. Do you think it's difficult to choose stocks from 4000 stocks or from 50 stocks?
Here we introduce a tool called the daily limit up review table, which categorizes all stocks that hit the daily limit up by concept and sorts them by the time of the limit up.
This daily limit up review table is equivalent to our backup stock pool for the next day. With this table, our workload in stock selection has been greatly reduced. Does that mean that we don't pay attention to stocks that are not on the daily limit up and closing table?
That's right, just not paying attention to whether a stock can hit the limit up or not is itself the most effective indicator to measure whether a stock is strong. Focusing on stocks that hit the limit up actually reduces the probability of us making mistakes. Of course, doing so may miss out on buying opportunities at low levels in big stocks, but everyone should remember that making fewer mistakes in the short term is ten thousand times more important than missing out on one or two big stocks.
Stocks that hit the limit up the day before may die directly the next day, while others may continue to rise on the 2nd or 3rd board, or even become leaders. Therefore, we need to conduct a second screening based on the limit up review table.
How about we screen? The most important indicator is trading volume.
All those who hit the limit up the day before and continued to shrink and hit the limit up the next day will not be considered. (Note that doing so may miss out on bull stocks, but it will definitely significantly increase the success rate of operations)
Why is that?
Imagine if a stock hit the limit up the day before and sold 100000 shares throughout the day, but continued to hit the limit up the next day and only sold 20000 shares, it means there are still 80000 shares left unsold. These shares have already earned a profit of 10% and could be sold at any time. If we buy it and someone throws it out, then we become the rightful buyers.
Do we have an absolutely correct method to determine if the person who bought it yesterday will smash the plate today?
No!
Isn't it easy to smash stocks on the flash board? Isn't it easy to smash stocks with large block orders? Isn't it easy to smash hot topic faucets? Has the form been easily smashed?
Not necessarily. Stocks are held by others, and they can be smashed if they want to. We cannot influence others' thinking.
Therefore, based on the daily limit up review table, we further exclude stocks with reduced volume the next day.
So, how to avoid buying stocks on the same day and being hit by the person who bought them the day before?
It's simple. Since you're afraid of being smashed, let the people who bought it before smash the stock first and see how the stock price will trend after smashing it? If the stock price crashes after smashing the market, it means that today's chips are passively taken over and are likely to cool down, so we don't need to pay attention anymore. If there are still actions of hitting the limit up or closing the limit up after smashing the market, and there are no extra chips left to smash the market, then the probability of ultimately closing the limit up will greatly increase?
In layman's terms, for example, in a battle between two armies, if we know that the enemy has 10000 troops, the best way to ensure victory is to wait for the enemy to consume almost all of these 10000 troops before we go up and eliminate them.
There is a very important data here, which is how many bullets the enemy has in their hands, or how many chips are used to smash the market?
Can we just use the number of transactions made yesterday? Of course not, maybe we've finished smashing yesterday's chips. We still need to smash the previously hidden chips.
To help everyone determine the number of chips that have hit the market, I will use a stock as an example to teach you how to use this method to determine the buying point.
Take Axle Research Technology (002046) as an example.
As of Monday, this stock has hit the daily limit up for four consecutive days. Of course, before that, we definitely didn't know that Axial Research Technology would have gone out of four boards, otherwise I would have gone into the first board. Let's follow the reasoning above and take a look. If we don't know the future trend of Axis Research Technology, how should we judge the buying point.
On May 6th, Axis Research Technology hit the daily limit up for the first time, closing at 6.13 yuan.
I won't say much about this limit up, it may be due to a good news or other reasons. Anyway, after the limit up, it was included in the limit up review table and became part of our alternative stock pool. 2. On May 7th, Zhuyan Technology hit the daily limit up for the second time, closing at 6.74 yuan.
It can be seen that the stock price of Axis Research Technology fluctuates greatly, with a peak of 10.27 yuan at the beginning of 2019 and a drop to 5.15 yuan at the beginning of 2020. Along with the fluctuation of the stock price, each wave of the market has an increase in trading volume. What does an increase in trading volume mean? Does it mean that the exchange of chips is more intense? What level can it reach at its most intense?
As can be seen, the maximum daily trading volume of Axis Research Technology in the four volume areas marked above are 200000 lots, 255000 lots, 116000 lots, and 156000 lots, respectively.
That is to say, in the past two years, the stock price of Axis Research Technology has repeatedly fluctuated between 5-10 yuan, but the maximum daily trading volume was only 255000 lots, which means that only 255000 lots of chips participated in the trading in a single day. Therefore, the maximum number of chips that could potentially crash the market is also 255000 lots!
Therefore, 255000 hands, which is the total strength of the enemy, may be the total amount of chips used to smash the market.
Here's an explanation, why do we say 'possible'? Because considering the possibility of additional floating chips from retail investors and the existence of chips that have lost trading desire, it is impossible to accurately say 255000 lots of chips. There is a high probability of hitting the limit up within the range of 80% -120%, which is between 204000 and 306000 hands.
The rest is simple. As long as at some point on the next day, after all or most of the chips of Axis Research Technology are smashed, if the stock price can continue to remain strong, even hitting the limit up, then this is a golden buying point. The stock is likely to be able to block the limit up, and we can catch a limit up board.
Let's take a look back at the trend of Axis Research Technology on May 7th:
9: 31 direct flash sale, only 90100 transactions were made, which definitely does not meet the requirements. The volume reduction is severe, and the remaining 100000 or so chips may cause a crash in the market. Let's continue watching for the third day. 3. On May 8th, Zhuyan Technology hit the daily limit up for the third time, closing at 7.41 yuan.
9: After 41, Axis Research Technology firmly sealed off the daily limit up and never opened again. On May 11th, Zhuyan Technology hit the daily limit up for the fourth time, closing at 8.15%.
High opening and flash trading, achieved in one go, this trend will definitely continue to hold, with a 10% profit in hand. (Note: It should be emphasized here that the chip theory is used to find buying points, not selling points, so don't think about selling just because the fourth limit up board shrinks, otherwise you will do the opposite.)
The above is my method of judging the buying point of stocks from the perspective of trading volume. The most difficult part of the entire process is to determine the maximum number of chips that could potentially crash the market. As long as they are found, unless they cannot be bought, there is basically no mistake if they are bought.
