How can retail investors catch up with the daily limit up, and how should leading stocks grasp practical skills

What is the most exciting thing for stock traders? Perhaps it just caught the limit up board!

When everyone is optimistic about a certain stock, they rush to buy it, which leads to a shortage of supply for that stock. Later buyers can only wait in line at the limit up position. Investors who buy on the limit up board may make huge profits due to a short-term surge, or suffer heavy losses due to a short-term sharp drop. So two types of investors emerged, one bravely chasing and the other watching from afar, with some eager to try.

Stock investors who buy at the limit up hope to block the limit up and continue to rise the next day. But often it is difficult to buy or falls after buying, and the probability of hitting the limit up board is not high. And investors who buy on the limit up board are often worried about continuing to rise after selling, as well as fearing that holding will lead to a decline.

So how should we chase the limit up board?

Some investors repeatedly fail to catch up with leading stocks because buying them is a good way to quickly make profits in the short term. However, it has very high requirements for the operator's mentality, trading skills, basic skills in market observation, and adaptability. If there is no careful and comprehensive preparation in all aspects, blindly chasing the rise of leading stocks is naturally prone to setbacks. Next, the editor will specifically explain how to chase the rise of leading stocks.

Select leading stocks based on individual sectors and stocks

The specific operation method is to closely monitor the capital movements of most individual stocks in the sector. When there is a phenomenon of capital increase in most individual stocks in a certain sector, special attention should be paid to the varieties that may become leaders based on the quality of the individual stocks. Once a certain stock starts to increase volume first and confirms an effective breakthrough upwards, do not buy other stocks that follow the trend, but chase after the leader. This is called "catching the thief first, catching the king", which is an essential method for chasing the rise of leading stocks.

This stock selection method may seem like chasing high and high-risk individual stocks, but in fact, it is due to the characteristic of leading stocks starting with the sector first and falling after the sector falls. So, its safety factor and operability are much higher than those of follower stocks, and as for its returns, follower stocks are far behind.

The first limit up board for chasing up leading stocks

If investors miss the buying opportunity when leading stocks are launched, or if their judgment ability is weak and they fail to identify the leading stocks in a timely manner, they can chase the rise at the first limit up board during their upward phase. Usually, the first limit up board of leading stocks is relatively safe, and there is an upward trend at the beginning of the market, which can make investors calmly retreat. There are two specific methods for chasing the rise of leading stocks: one is to chase the rise when the leading stocks are about to close their limit up; The second is to chase the rise when the limit up of leading stocks is opened after the limit up is closed.