The daily limit up indicates a strong trend in stock prices, especially for stocks that have continuously hit the limit up, which can yield substantial profits in the short term. However, after a significant increase, they often experience a sharp drop. Therefore, participating in the daily limit up stocks not only brings high returns but also carries high risks. Through the analysis of stocks that have hit the limit up in the past two years, it can be found that stocks that hit the limit up tend to rise the next day. According to some statistics, the average increase on the highest point of stocks that hit the limit up the next day is 5.92%. Therefore, if short-term intervention is made in stocks that hit the limit up, the average return on the next day is also much higher than that of the secondary market. How to choose stocks that hit the daily limit up? When participating in limit up stocks, short-term trading should be the main focus, and low-priced and small cap stocks should be chosen as the main option. Once these stocks reach the limit up, they can often form a sustained upward trend, and the best circulating stock is between 30-80 million shares. It is difficult to continue to rise after the limit up of medium and large cap stocks.

From the timing of intervention, the earlier a stock's limit up time leaves the market, the better the next day's trend. If a stock reaches the limit up before the closing, the next day's trend is not ideal. Moreover, most individual stocks always have an opportunity to open the limit up board during the trading session after reaching the limit up, and the best intervention time should be the moment when the limit up board is closed again.

When buying stocks with a daily limit up, it is important to pay attention to the following points: 1. Observe the strength of the market. In extremely strong markets, especially when around 5 stocks hit the limit up every day, it is important to boldly follow the limit up board. A very weak market must not catch up with the daily limit up. 2. The form before the limit up is better, such as a new stock that has been listed for a few days with a slight consolidation, or suddenly jumped short and opened up at the limit up on a certain day; Or the stock selection price has been consolidating at the bottom for a long time without a significant increase in the bottom stocks; Or strong stocks that end their consolidation at the end of the consolidation period and hit the limit up. 3. If there is a volume that can cooperate, and if you find a volume of three or more digits pushing towards the limit up during the trading session, you can immediately catch up. 4. Search the price increase ranking list in a timely manner during the trading session, and review the current price, previous trend, and circulating size of stocks close to the limit up to determine whether they can be used as intervention targets. When the increase exceeds 9%, be prepared to buy to prevent large orders from hitting the limit up and not being able to buy. 5. The trading volume released by the chasing stocks on the same day should not be too large, usually 1-2 times that of the previous day, and can be easily calculated half an hour after the opening of the day. 6. Having appeal, the entire sector is launched, and we need to catch up with the leaders who hit the daily limit up first, especially in bull markets or extremely strong markets.

During a period of market downturn without a limit up, if there is a strong rebound or reversal to catch up with the first limit up, the stock is likely to be the leader in the future, and even if it rebounds, the strength will be much greater than other stocks. The timing for selling limit up stocks can be to sell them when the 5-day moving average is flat or turns, or to sell them immediately when the red bar in the MACD indicator is shortened or flat. If the stock price reaches the limit up again around 30 minutes the next day, boldly hold it. If it does not reach the limit up the next day, it can be immediately sold when the stock price platform adjusts for a few days after rising for a period of time, or it can be sold when it rises the next day. If the stock does not rise within three days after catching up, it should be sold out to avoid delaying the opportunity or being deeply trapped.

Attention: Participating in the daily limit up generally has a good effect in the early stage of market launch, but mistakes are prone to occur in the later stage.