Since the new regulations, the trend of buying new stocks has been rising one wave after another. There is no need to occupy funds anymore, as long as there is a corresponding market value, you can buy new stocks. However, the probability of winning the lottery is getting lower and lower. So how to easily win the lottery when buying new stocks?
For investors, subscribing to new shares does not necessarily mean they can buy them, so it is crucial to improve the success rate of new listings. Even after winning the lottery, when to sell the tickets is crucial. Therefore, mastering certain new stock acquisition techniques is very helpful for improving the returns of new stock investments.
Tips for High Winning Rate in New Stock Subscription
Be prepared and focus on attacking: Many investors blindly invest in new stocks, treating them as buying lottery tickets, but opportunities are always reserved for those who are prepared. Analysts pointed out that investors can learn detailed information about recent new stock issuances from the "New Stock Subscription" section of "Zhongcai Net New Stock Online". Such as issuance date, subscription code, online and offline issuance quantity, issuance price, subscription limit, P/E ratio, and the industry to which the stock belongs. After fully understanding and comparing the newly issued stocks during the same period, a strategy for launching new stocks can be formulated.
The chance of winning the lottery is higher if you don't rush the excitement: When two or more new stocks are issued online at the same time, priority should be given to unpopular stocks, as the chances of winning the lottery may be higher in places with fewer people. In addition, investors can concentrate their funds to invest in a new stock. If three new stocks are issued simultaneously, they should choose one full position for subscription to increase the chances of winning. Choose a reasonable ordering time. It is best to choose an intermediate time period for subscription, such as placing orders between 10:00-11:00 in the morning and 1:30-2:30 in the afternoon. There is still waiting time in line during this period.
Seize the opportunity and sell at a good price: The sharp rise and fall on the first day of listing was the main reason why new stocks were criticized by the market before. In the new regulations, both the Shanghai and Shenzhen stock exchanges require that the effective bidding range for the opening call auction of new stocks on the first day of listing is 20% above and below the issue price, otherwise it will be considered an invalid declaration. According to the regulations of the Shanghai Stock Exchange, the effective declared price during the continuous bidding stage shall not exceed 144% of the issue price and shall not be lower than 64% of the issue price.
In order to stabilize the first day prices of new stocks, the Shanghai Stock Exchange also stipulates that if the intraday transaction price rises or falls by more than 10% (inclusive) compared to the opening price for the first time, it will be suspended for 30 minutes, and if it rises or falls by more than 20% (inclusive), it will be suspended until 14:55 on the same day.
Therefore, for some stocks with good quality, the possibility of institutions grabbing enough chips on the same day is reduced, and the trend of several trading days after listing may become an opportunity to observe whether there is a large-scale intervention by institutions. Therefore, for small and medium-sized investors who have won the lottery, they should change their habit of selling on the first day of listing after winning the lottery. For new stocks with good quality and trend, they can observe for a few more days to find opportunities to sell.