When the bearish sentiment in the market is exhausted and various technical forms are basically good, for short-term investors, the spring of the market is not far away. When the market comes, without chasing the rise, it is impossible to buy strong stocks and improve the efficiency of fund utilization, which is widely recognized as the leading stock. Leading stocks generally have strong explosive power, strong sustainability, and the fastest money making ability. Mastering them well can earn money every day. From years of stock trading experience, stocks that meet the following four conditions can be included in the key focus of investors: first, they must be stocks with high gains, especially those with gains on the top list. The high increase sends us a strong signal that the stock is strong and is pushing up the stock price. Its intention is nothing more than to continuously raise the stock price after entering the upward phase in order to achieve the goal of trading; Or continuously collecting chips during the process of raising to achieve the goal of building a position.
Secondly, it must be a stock that has risen sharply at the opening. Because various main players will formulate their daily operation plans before the opening, the market situation at the opening often reflects the views of the market makers on the trend of the day. The main reason for the significant increase in the opening price is that the market makers are very optimistic about the future and are preparing to launch a new round of individual stock market trends. However, the opening price has risen sharply, which can prevent retail investors from having the opportunity to receive chips at low levels.
Thirdly, it must be a stock with a high volume ratio. Volume ratio is the ratio of daily trading volume to the trading volume of the previous five days. The larger the volume ratio, the more obvious the increase in volume on that day, and the rise of the stock is supported by trading volume, rather than the main force relying on speculative tactics such as sudden closing to drive up the market.
Fourthly, the stock price must be in the low price range. When the stock price is in the low price circle, the stocks with the highest increase and volume ratio can indicate that the main force's true intention is to raise the stock price, rather than to attract more investors. If there are stocks with high price increases and high volume ratios in the high price circle, there may be traps and the risk of participation is relatively high. There are many methods to determine the low price circle, and those with a stock price drop of more than 60% compared to the previous high point can be called low price circles.