Under most market conditions, not chasing the rise is a safe investment method. However, in a strong market, not chasing the rise has become a rigid investment mindset. In a strong market, many investors often complain that their chosen stocks have already risen, so they are unwilling to chase the high and buy. However, there has always been a long-term effective pattern in the strong market over the years, which is the Matthew effect where the strong become stronger and the weak become weaker. The stronger the trend of a strong stock in a strong market, the more investors are afraid to buy it; The more investors are willing to buy weak stocks, the more difficult it is to show decent market performance.

Therefore, when entering a strong market, investors need to adopt the strategy of chasing after the rise. Pursuing price increases requires a thorough investment plan and the use of appropriate investment techniques

1. Operation method of chasing price increase

Investors need to change their mindset when implementing buying operations in the main uptrend market, and can no longer solely focus on performance, growth, price to earnings ratio, and other factors when investing. But it is necessary to select stocks based on the upward trend. Specifically, it means choosing stocks with more profit opportunities. In addition, investors cannot immediately chase after a stock's rise, but if the funds are only speculative funds with strong short-term liquidity, the market often cannot last. Therefore, investors must conduct a comprehensive analysis of the four aspects of incremental funds, including the scale and strength of the funds, the operational mode of the funds, the operational level of the funds, and the market sensitivity of the funds. Only when the incremental funds of individual stocks belong to strong mainstream funds, can they be pursued for price increases.

2. Fund management for chasing price increases

Even if investors are optimistic about the future market, it is not suitable for them to adopt the method of chasing the rise with full positions. A prudent approach is that investors can use half of their positions to chase the rise, and the other half of their positions can appropriately sell high and buy low according to the fluctuation pattern of the market. As they already have half of their positions, investors can indirectly implement T0 operations, while controlling their positions and maximizing profits through rolling operations.

3. The profit target of chasing the rise

In the process of chasing market trends, it is necessary to set profit goals based on changes in market conditions. When setting goals, the specific environmental characteristics of the market should be taken into account, starting from the actual situation of the market, understanding the fundamental nature of the market, roughly distinguishing the type of market, analyzing the upward attack power of the market, and ultimately determining profit goals based on these factors. When reaching the profit target, it is important to firmly stop winning, which is a means to overcome greed and control excessive pursuit of gains.

4. Risk control for chasing price increases

Due to the relatively high risk involved in chasing after a stock, it is particularly important to control the risk. Once the trend repeats or individual stocks experience stagflation, it is necessary to ensure that one can immediately exit unscathed. This requires investors to master three investment principles:

The setting of stop loss level is an essential part of the investment plan before chasing after the rise.

When chasing a rise, it is necessary to evaluate the market situation and the sustainable upward momentum of individual stocks, and calculate the risk return ratio based on this. When the risk exceeds the return, the operation should be stopped immediately.