How to choose:
Firstly, we can know the market trend from policies and news, and strong stocks emerge in each round of hot topic switching. Normally, after a decline, the market often switches to new hotspots during a new rebound period.
Secondly, invest heavily to promote and capture strong stocks. There are two types of stock volume increase: aggressive volume increase and strong passive volume increase. If there is continuous volume increase for three consecutive days, it is called aggressive volume increase; If you suddenly increase your trading volume in a day, it is a passive way to replenish your position and increase your trading volume. If the subsequent trading volume is not sufficient, the effect will be far inferior to that of individual stocks that actively increase their trading volume. Here, we need to learn to distinguish between them.
Thirdly, it is the classic "dragon turning back". We know that the strong always remain strong, and these strong stocks will not easily fall. After a period of correction, they are still the focus of capital attacks. We may as well rank the rising list and become more familiar with the well-known leading stocks in recent times, so that we can handle the second launch with ease.
Characteristics of the faucet:
1. The first to hit the limit up in a sector, and the strongest one is usually the leader.
2. However, due to the characteristics of individual stocks, there is a high possibility of a stuck position in the future. Therefore, it is necessary to consider the fundamentals of the first limit up stocks, such as moderate circulation, moderate price, historically active stocks, and the style of the main players or speculative investors involved, to confirm whether the first limit up stocks have sustainability.
3. The next day's opening confirmation: If the second board or straight board is the best, other stocks in the sector will follow the trend.
4. Single and scattered hotspots: If a single hotspot indicates strong concentration, there is no need to worry. If dispersed, caution is required.
5. If all four of the previous points are valid, then the board connection may be very large, and the confirmation of the leader has been completed. The next step is to find a suitable participant.