Many investors in stocks hope to see an immediate increase, and some even prefer to see an immediate increase on the same day they buy. In fact, the idea is beautiful, but the reality is that losses outweigh profits, and the main factor is that most loss making investors have not systematically learned methods and mostly follow the trend to enter the market. Just like when the market rises sharply, the trading volume is usually large, indicating that there are many investors participating in following the trend, which is the main reason for the large number of people losing money.
Investing every year requires learning every year. To share an investment method with fans, it is only necessary to master three steps, and you may catch the bull stocks that hit the daily limit up the next day
The first step is to determine which stocks are most likely to hit the limit up
In the stock market, there are stocks that hit the limit up every day, but not all of them we know why they hit the limit up. Many stocks that hit the limit up have no warning and cannot be caught at all. Even if some stocks you know will rise, it's because there's news at the close. If they rise the next day, it has nothing to do with you. If you chase after them the next day, you may step on a hill. So although there are many stocks that have hit the limit up, not every one belongs to you, most of them are stocks that have no chance.
Actually, not every stock that hits the limit up is a stock that has no fate. We need to find a fate in the midst of no fate. After a stock reaches its limit up, does it still have the ability to continue rising again? This is what we study. If it still has the ability to continue rising, it means it is a stock with destiny.
Where can you find lucky stocks?
The answer is to look for it on the daily limit up board. There are many daily limit up boards, and truly bull stocks are those that keep rising or rising, which is called bull stocks.
This is the core point, which is the first stock to hit the limit up recently. Stocks that have already risen a lot can prepare to sell on the mountaintop. Only stocks that have hit the limit up for the first time recently are likely to have a bull market. This is the first step.
The second step is to grasp the core of the limit up by adjusting the position after the limit up
After completing the first step, it is necessary to observe the position of the stock and determine which position is likely to continue hitting the limit up. Remember the following two points:
1. Near the support level in the early stage. There are many types of support positions, including linear support positions such as horizontal support positions and diagonal support positions. There are also curved support levels, such as moving average support levels. The following figure shows the horizontal support level.
2. Near the pressure level. There are also many types of pressure levels, including linear pressure levels such as horizontal pressure levels and diagonal pressure levels. There are also curved pressure levels, such as the moving average pressure level. The following figure shows the horizontal pressure level.Then look at the number of days for adjustment, which is to prepare for entry.
If there are a few days, it depends on the number of adjustment days. Generally, the adjustment is based on the occurrence of buying points between 5-13 transactions. If it is insufficient or exceeds, it will be abandoned.
During the adjustment process, it is necessary to reduce the quantity. The adjusted stock price must be below the highest price of the daily limit up candlestick.
Step three, find a buying point and strike accurately
When the position and adjustment of the second step meet the requirements, observe whether there are buying and selling points. If there are buying and selling points, dare to attack.
There are three main types and nine forms of buying points, and we will only talk about one of them, which is the appearance of a small or medium bullish candlestick as a buying point. The four types in the following picture look similar, but there are actually differences, that is, they are very similar, so they are all called buying points.
Preferred conditions
If there is a limit up within the past month, but there is no room for further increase, and the price rises and then returns, it is preferred. As shown in the figure below, if there is a limit up and it is adjusted back, it is preferred. The two arrows in the following figure are both buy point K-lines, and the second arrow is the buy point K-line mentioned above. The first candlestick is adjusted to the lowest price of the previous limit up candlestick, and the second buying point is adjusted to half the position of the limit up candlestick and the highest price of the first candlestick.
The selected limit up is above a certain support level.
The selected limit up is just below a certain pressure level.
The selected limit up targets are in line with mainstream hot topic speculation.
The fundamentals are not in a loss making state, this is to avoid stepping on the bandwagon.
Stop loss level
Any operation faces risks. Although success may bring great profits, if the overall market environment is not good or individual stocks are at risk, it is necessary to cut losses to avoid the risk of losing control.
There are two stop loss positions
1. Buy the lowest price of the K-line, as shown in the four buy point charts above.
2. The lowest price at the selected limit up position, which is the lowest price of the limit up candlestick referenced earlier. As shown in the figure below, a small stop loss is at the lowest price of the arrow K-line, while a large stop loss is at the lowest price of the previous limit up K-line.
This method, once successful, is easy to hit the limit up the next day, and some even skyrocket continuously, soaring all the way. So if you succeed, you will definitely make a big profit, but if you fail, the loss is usually only 3-5 points.