Some investors repeatedly fail to catch up with leading stocks because buying them is a good way to quickly make profits in the short term. However, it requires a high level of operator mentality, trading skills, basic skills in market observation, and adaptability. If there is no careful and comprehensive preparation in all aspects, blindly chasing the rise of leading stocks is naturally prone to setbacks.
The preparation work for capturing leading stocks must actually begin when the market is in a weak downward trend, and cannot wait until the market stops falling and reverses before hastily selecting stocks to chase after the leaders. Only by making early preparations, analyzing and selecting varieties that may become leading stocks and sectors in the future market in a weak market, can we quickly and accurately intervene when the market starts again.
So, what preparations are needed to capture leading stocks, generally including the following aspects:
1. Firstly, it is necessary to choose sectors that may become hotspots in the future market. It should be noted that the duration of hot topics in the sector cannot be too short, the themes owned by the sector should have imaginative space, and the leading stocks of the sector should have the ability to stimulate market sentiment and drive the overall market.
2. The capacity of the selected section cannot be too large. If there is a phenomenon of too large a sector, it must be subdivided. For example, the capacity of local stocks in Shenzhen is too large, and it is impossible for them to rise completely in a mid market trend. Therefore, they can be subdivided into several sectors based on industry characteristics in order to make targeted choices for intervention.
3. Selected individual stocks. When selecting stocks, it is important to be precise and not too many. Generally, only 3-6 stocks can be selected per sector, as too many are not conducive to analysis, attention, and quick response.
4. Plate settings. Set the selected sectors and stocks in the custom sectors of the analysis software for future tracking and analysis. The simpler the custom sector name, the better, such as A, B, C... Once the leader is detected during the market view, it can be confirmed with one click using the keyboard wizard to save trading time. Conditional investors can activate the warning function.
5. Track and observe. The sectors and stocks chosen by investors may not all become hot topics, nor may they immediately trigger a bearish trend. Investors need to track and observe for a long time to grasp the best timing for intervention.