Many people like to speculate on leading stocks when they are trading, because leading stocks usually have a background of large capital intervention and rely on substantial themes or performance improvement. How to identify leading stocks?

The leading stock index is a stock that has an impact and appeal on other stocks in the same industry sector during a certain period of speculation in the stock market. Its rise and fall often serve as a guide and demonstration for the rise and fall of other stocks in the same industry sector. When it comes to the causes of leading stocks, in order for a stock to become a leader, it must meet five basic conditions:

1. Leading stocks must start from the daily limit up. Stocks that cannot reach the limit up cannot become leaders. In fact, the limit up board is the most accurate attack signal for both long and short sides, the cradle of all dark horses, and the birthplace of leading companies;

2. Leading stocks are always low-priced, generally not exceeding 10 yuan. Only low-priced stocks can be sought after by investors and become popular lovers - leaders.

3. The circulating market value of leading stocks should be moderate and suitable for large capital operations. Large market value stocks and small cap stocks below 30 million cannot serve as leaders;

4. Leading individual stocks must simultaneously meet the low price golden cross of daily KDJ, weekly KDJ, and monthly KDJ.

5. Leading individual stocks usually hit the limit up against the market downturn at the end of the market panic, hitting the bottom early or starting before the market, and enduring a round of decline tests.

After knowing the conditions that leading stocks need to meet, it is also necessary to know their identification characteristics when searching for leading stocks. The identification of leading stocks requires rich practical experience. Based on the experience summarized by predecessors, two characteristics are identified to identify leading individual stocks:

1. Changing from a hot topic to a leading stock. Usually, after a sharp decline, the market will switch to new hotspots.

2. Identify leading stocks based on their high volume nature. There are two types of stock volume expansion: aggressive volume expansion and replenishment volume expansion. If a stock experiences continuous volume expansion for more than three days, it is called aggressive volume expansion. If a stock only has single day volume expansion, it is called replenishment volume expansion. Leading stocks must have aggressive volume expansion characteristics.

Another thing that everyone needs to understand is that the leading stocks in the market are not static, and their position can often only be maintained for a period of time. The basis for becoming a leading stock is that any information related to a certain stock will be immediately reflected in the stock price. Finally, we would like to remind investors that stock trading carries risks. While entering the market with caution, please also maintain a good investment mentality.