The reason for picking up goods on the board is not for the sake of making a board, but essentially to obtain advantageous chips (i.e. leading stocks with three main market themes). Grasping the main line and leading positions is a principle that must be followed not only in short-term but also in medium to long-term operations. Because in the short term, there are short-term leaders, and in the medium to long term, there are also mid to long term leaders. Seizing the leader can be twice the result with half the effort, while failing to do so can result in twice the result with half the effort. In one sentence, it can be summarized as follows: every majestic peak must have a main peak, and the Nine Chapters of Dragon Gun are just a guide.
In theory, as long as the "main peak" is selected correctly, there is no need to make a decision, and blindly buying the main line leader is enough. But in practice, it cannot be achieved because the market is ever-changing, complex, and difficult to predict. It is not easy to choose the right main line and leading company every time. Especially considering factors such as rhythm, timing, and sudden changes during trading, the seemingly "foolish" practice of placing orders on the board is actually the best solution among all short-term strategies.
The advantages of board making operation mainly include the following four points:
1) Following the market to avoid subjectivity, the biggest source of losses for individual investors lies in subjectively predicting that a certain stock will hit the limit up and chasing after it to buy, but instead of hitting the limit up, it rises and falls, and then opens low the next day to lock up.
2) The trading operation can to some extent change T1 to T0, which can achieve a reduction in dimensionality for other investors who chase after the rise or buy low.
3) The limit up price is the key turning point from quantitative change to qualitative change, and here we buy 'utility maximization'. The limit up price is like the boiling point of water, the ignition point of a substance, or the takeoff point of an airplane taxiing. Imagine going to school and buying a child with a score of 95 for 95 yuan, or buying a child with a score of 100 for 100 yuan, which deal is more cost-effective? It must be the latter, because a child who scores 95 has only 95 points of ability and is therefore only worth 95 yuan, while a child who scores 100 must have an ability greater than or equal to 100 (because the test paper only has 100 points).
4) Trading on the board can automatically eliminate the high trap of pseudo strong stocks, while maximizing the placement of chips on the left side.
From the long-term and overall perspective of trading results, board trading is the optimal strategy (short-term) under the A-share system. Those traders who have a resistance and aversion to board trading are not cautious or timid, but rather lack overall, profound, and long-term thinking.
Lack of integrity: Not understanding the concept of opportunity cost.
Lack of depth: Failure to understand the essence of trading and institutional loopholes in A-shares (T1 and limit up/down board)
Lack of long-term perspective: placing excessive emphasis on the profit and loss of the day of purchase and being insensitive to the final outcome of the transaction. Psychologically speaking, it means that one cannot tolerate today's temptations for the sake of tomorrow's beauty (delaying enjoyment in order to achieve a better final result). This principle is similar to the famous candy experiment (candy experiment: give each of 10 children one candy, tell them that whoever doesn't eat the candy today will be given two more candies tomorrow. Most children couldn't resist the temptation of candy and gradually ate their own candy, while a small number of children kept the candy until tomorrow. Long term tracking and observation have found that those children who can keep the candy until the next day achieve much higher success than those who didn't keep it.)
In summary, in order to ensure the objectivity of trading to the maximum extent, fully utilize the shortcomings of the A-share system to reduce the dimensionality of other traders (using the limit up board system to change T1 to T0), maximize the utility of fund utilization, and optimize the overall trading career performance, obtaining goods on the trading board is the best choice and the only way.
Classification of limit up boards and summary of hitting methods
The purpose of hitting a board is to obtain the premium of the day after the board (and so on for consecutive boards), so the key to the success or failure of hitting a board is how to determine "what kind of limit up board has the highest premium". To understand this issue, the first step is to classify the limit up boards and observe and summarize which types of limit up boards have the highest premium the next day. Based on years of practical experience in board trading, it has been found that the following types of limit up boards are the most popular operations for board traders:
1) Good news tickets and wrong killing of new stocks, opening and closing of the board
Due to favorable conditions or restructuring, the value of a certain ticket has greatly increased and opened a single board continuous trading session. During the process, it was affected by the overall market environment (market adjustment) and opened early. After the environmental factors eased or eliminated, it was closed at the limit up and continued to rise the next day. For example, the Berry gene.
New stocks are issued at a discount, so there will be a certain number of single board stocks after listing. If the market continues to decline for several days during the single board process, the new stocks will be affected and open early. Among them, the stocks opened on the day of the final turning point of the market adjustment have the highest probability of redemption and premium after opening. For example, Junda Corporation.
The two examples are both boards that have participated in this logic before, with significant profits and a deep impression.
2) The premium of leading players in regional hotspots
The so-called plate hot spot refers to the linkage between the trends of certain individual stocks, with a slight order of starting and falling time, so we can call it a hot spot. On the contrary, some individual stocks have strong independence in their own trends, and there are no stocks that keep up with the rise and fall, so we can call them "unicorns".
When the overall strength of a hot spot increases, there will be a stock that goes on the board first, which is commonly known as the leader. After the leader goes on the board, the price stops rising, while other stocks continue to rise. Based on the "price comparison effect", the leader will have a premium the next day (continuing to rise for a period of time). Imagine if there is no limit up board under the T1 system, even if we buy the leader at 10%, continue to rise to 16% and then fall back to close at 8%, and only sell the next day, we won't make any money. So under the limit up system, the trading operation can be changed from T1 to T0. The next day, when the leader rises, we can sell off the profits, and then it has nothing to do with us if it falls back to less. Selling the next day after trading is the norm for trading operations, and there are relatively few consecutive trading the next day. There are many examples of hot leading premium boards, and the most recent one involved was the strong linkage of the banking sector on January 17th, which led to the listing of Zhangjiagang Bank. The next day, after the consecutive listing, the board opened and earned a profit of 9 points before being eliminated.
3) Arbitrage opportunities for single seed stocks&participation methods for unicorn monster stocks
Some stocks are stimulated by positive news and begin to rise, without any other stocks linking with it. These stocks are called "single seed stocks". The premium uncertainty of the next day's limit up for single seed stocks is high, and the opening rate is also high, which is not a good choice for trading operations. Although single seed stocks can sometimes become big bull stocks, it is more important to see that single seed stocks have more weak and explosive boards. It is difficult for us to accurately judge their strength and expected height of upward space in a short period of time during the trading session (it is difficult to make estimates and trade-offs). Such individual stock trading operations can only be carried out when the overall environment is good, there are many stocks with limit up, and the market opening rate is low; Another technique is not to participate in the first board. If the board is opened after being placed on the board, you can pay attention to whether it will be sealed back. Choose to board the board during the second board with higher safety. In the long run, the benefits of this type of board making operation are not good, so it is not the first choice.
Summary and Induction of Methods and Techniques for Board Making Operations
1) Methods for participating in board making opportunities discovered during trading
This is mainly aimed at the second type of operation mentioned earlier, which involves sorting all market sectors according to their growth rate (growth rate chart), so that abnormal sectors can be observed in a timely manner during the trading session. When a certain sector theme is observed to have strong linkage during the trading session, quickly find the leading stocks among them and add them to the self selection observation. At the same time, pay attention to the technical form of the sector, and make judgments on the strength and sustainability of the sector's upward attack based on the strength of the linkage. If the intensity is strong and the expectation of sustainability is strong enough, fill out the order immediately. Once the leader is listed, place an order to buy instantly. If there is no transaction temporarily, you can continue to queue. Opportunities with sufficient certainty and huge imagination space can rise to 8-9 points to start buying up, in order to prevent funds from rushing to raise funds and missing out on buying opportunities (the techniques of scanning, arranging, and hitting boards will be explained in a separate text in the future). Whether a leading board can be hit depends not only on analyzing the strength and sustainability expectations of the sector, but more importantly, on whether the overall market environment is warm or cold (whether the overall risk is greater than the opportunity or the overall opportunity is greater than the risk), and it is best to only hit the board in a warm environment.
2) Opportunity to participate in pre market research preparation and selection methods
Some reserve votes with strong upward momentum and expectations were discovered through pre-market research, such as those with positive resumption, resumption of price increases, major positive announcements before the market, certain strong bullish forms with special characteristics, and one board consecutive trading, etc. After in-depth and detailed research and selection, they were added to the self selected reserve pool for observation, and at the same time, contingency plans were made (thinking clearly about what situations can be played on the board and what situations cannot be played on the board). If they meet expectations or exceed expectations on the next day, they can be played and bought.
3) Opportunity participation methods and precautions discovered during the call auction period
There is a type of stock that was not noticed or thought of during pre-market research, but opened significantly higher than expected during the call auction period. If the stock is weak or weak, then it is strong. If something goes wrong, there must be a demon. For the unexpected strong performance of these stocks during the call auction period, it can be found in the price increase list before 9:30. By adding the option to observe whether they can be listed on the board after the opening, and considering the strength of the overall market environment, the strength and stage of the recent performance of the subject matter, and the advantages and disadvantages of individual stock characteristics (stock nature, technical form, imagination space, etc.), the decision to buy is made after comprehensive weighing. Generally speaking, the order of importance of the above three factors is: overall market environment>intensity of the corresponding hot spot>individual stock characteristics.
In summary, the core key to trading is to accurately identify the stock with the highest consensus and recognition among numerous limit up boards. At the same time, the timing of operations and short positions should be determined based on the strength of the hot topics belonging to both the overall market and individual stocks. To achieve this, it is necessary to first select the hot topics with the highest market consensus and recognition. Then choose to strike when the overall environment is suitable. When the overall environment is unfavorable or the hot spot enters a recession period, even if the stock trend is strong, it should be abandoned.
Precautions for board making
How to reduce the explosion rate? How to avoid the pseudo strong board?
Board trading operation is one of the many modes, although it is the best one in terms of results (most of the current hot money giants in A-shares are big players who have made big profits through board trading), and it is also the one with the largest number of successful players. However, board trading does not necessarily mean that one must make a profit, and there are still many people who suffer serious losses from board trading. Therefore, in addition to figuring out which boards to hit and how to hit them, we should also understand the reasons for the hitting operations that usually cause losses, so as to be vigilant and avoid them in trading at all times.
After years of observation, the following points need to be avoided when making boards:
1. Do not play the leading role but follow the trend. Following the trend board, or Long 2 and 3, has a lower premium and a higher explosion rate on the next day.
2. The timing of board making is incorrect. Strike when the overall market environment weakens or the market is in a weak range, strike when the sector theme reaches a strong or weak point, and hit the rebound board when the sector or individual stock enters the right-hand range.
3. Single seedling board (high frying rate and low premium)
4. Pseudo strong board (when looking at individual stocks alone, one may feel very strong, while the hotspots to which they belong are generally weak or in a downward trend)
5. Thinking too subjectively and speculating on being able to climb the board and buying in advance before the limit up (essentially hitting the board is following, sweeping the board and buying in advance is gambling. If the board cannot be climbed after sweeping, there is a high probability that it will open lower the next day; in addition, the leading stock may not necessarily be the leader, sometimes following the rising ticket will come later and rush to climb the board to seize the leading position)
6. Encountering negative news on the next day of board trading
7. Once you make a wrong purchase or fail to perform as expected after buying, and fail to sell in a timely manner, resulting in the expansion of losses and missing out on good opportunities, your mentality will also become imbalanced. Having illusions and not stopping losses in a timely manner after making a wrong purchase is the worst habit. Not only will you lose more when you make the wrong purchase, but you will also miss out on other opportunities. The root cause lies in the emotional control of your thinking, and the failure to recognize the opportunity cost and the long-term integrity of your operation
8. Lack of patience and inability to resist temptation, rushing to take action when a second rate opportunity arises, and when a truly top-notch opportunity arises, there are no bullets left to attack. Not only do we waste top-notch opportunities, but we may also lose money on second rate opportunities.
9. Lack of mainline thinking, unable to grasp the key points when looking at the market, hitting some sub mainstream, tributary, inexplicably chaotic limit up boards. It should be noted that only the mainstream board can be used for the safest and fastest profit making operation.
The above nine categories are the main reasons for losses in board trading, and board traders must pay attention to being vigilant and avoiding them at all times.
