Do you want to buy stocks with new highs? Buying means pursuing high risks; If you don't buy, you may miss out on bull stocks. What is your choice?
1F. Innovative high standards
1. In terms of time, it must be a stock that has recently broken through the previous high point, that is to say, a stock that has just broken through the stage high point or historical high point has relatively high safety.
2. In terms of nature, the breakthrough high point must be an important high point in the early stage;
3. In terms of price increase, when it reaches a new high, it should rise at least 50% from the low point.
2F. Reasons for Investing in High Tech Stocks
1. A new high indicates that the main funds are optimistic, which is necessary to create a new high;
2. Stocks that have reached new highs, especially historical highs, have all the trapped chips released, so those who want to sell have also sold, and the selling pressure is relatively light.
3. Generally, stocks that reach new highs are accompanied by significant positive news, and they will continue to rise after breaking through historical highs. Therefore, the best time to buy when breaking through historical highs can also avoid long-term consolidation periods.
4. Stocks that reach new highs before the market or sectors are often the leaders of the sector and may be the ones that rise the best in the future.
5. Retail investors like to chase after high prices, which may attract a large number of buying orders, thus increasing the probability of a later rise.
Purchase can be made on the day of the breakthrough in volume, or at the time of confirmation of the drawdown after the breakthrough. But not all stocks with high innovation are worth investing in. It is still necessary to examine multiple aspects and analyze each stock one by one.
3F. Precautions
Before the stock starts to rise, the position of the sideways movement must be relatively low, and cannot be a sideways movement after significant speculation, otherwise it may cause a wave of selling and then lead to a decline.
The strength of the candlestick in the first wave of a stock's main uptrend must be strong, which means that the physical strength of the bullish candlestick must be large, preferably a limit up or a long bullish candlestick of 5% or more, to demonstrate the strength of the main force and the determination to go long.
It is best not to excessively increase volume at the top of the wave, but to drop when there is a normal volume, which indicates that the main force is still out and the future is promising. The wave callback must be shallow, with a range of no more than one-third of one wave. Horizontal adjustment is the best, and according to the numerical ratio, the rebound height should be within 20% of the high point. The shorter the callback time, the better.