The so-called strong stocks refer to stocks that once their upward momentum is established, they will not easily adjust downwards. Even when the market is in a downturn, they will only replace the decline with a sideways trend. When the overall trend is positive, their upward momentum will be more intense. How to get involved in strong stocks? Regarding how to intervene in strong stocks, below are some tips for intervening in strong stocks.
Before discussing how to intervene in strong stocks, it is important to emphasize a prerequisite, which is that the strong individual stocks to be intervened in must have good fundamentals, a high position in the industry, and clear and predictable performance for company growth. Next, let's talk specifically about the techniques for intervening in strong stocks.
How to get involved in strong stocks?
1. After the morning opening, if you find that the intraday trend is steadily upward, the technical form is also in an upward trend, and the trading volume is rapidly increasing, you should be prepared to intervene at any time. Many individual stocks that hit the limit up board launch a charge shortly after the morning opening, hitting 3-5 points in one go, then making a slight correction before launching a second or third charge until reaching the limit up. This is one of the key points for how to intervene in strong stocks.
2. Stocks that consistently rank at the top of the growth chart on a daily basis, if they were strong the previous trading day and performed remarkably well today, can be considered as candidates for strong stocks and should be prepared for intervention. After showing strong performance on August 16, 2010, leading technology has continued to rise for six consecutive days, and the stock has been soaring like a bull all the way.
3. The previous day saw a significant increase, but the next day it opened significantly lower. After opening lower, it continued to rise, and with the rise in stock price, a batch of large orders were quickly executed. This type of stock is a typical strong stock, and should actively intervene during a correction. This is the key to how to intervene in strong stocks.
4. On the intraday chart, if a stock that has been consistently stable suddenly shows a trend of increasing volume in a straight line, it should be followed up in a timely manner. Because the push up of this type of dryland onion often marks the beginning of a strong stock's surge. On February 21, 2011, Dayang Chuangshi's entire day trend was consolidating around the previous day's closing price, following a straight line. About 40 minutes before the closing, a large single order suddenly rose sharply, with a surge of nearly 7 points. Afterwards, the stock continued to climb and showed a significant upward trend, which is a clear strong stock.
5. Always pay attention to the trading volume ranking, especially for stocks that suddenly increase in volume, especially those that enter the trading volume ranking for the first time. Stocks with high trading volume and on the rise can be followed up in a timely manner; If it is a stock that is experiencing a decline in volume, one should be careful not to touch institutional shipments. It is important to pay special attention to how to intervene in strong stocks.
6. After investing in strong stocks, if there is any adjustment, as long as it is not a major negative news, if the dip exceeds 5 points, one should dare to increase positions; If a brief adjustment is followed by a resurgence, the position can be increased. When the true peak signal is repeatedly emitted, it should be decisively liquidated and eliminated.
It takes enough courage and bravery to invest in a strong stock. When investors invest in a strong stock, as long as they do not release a huge amount, they can hold it for a long time.