The daily limit up indicates a strong trend in stock prices, especially for stocks that have continuously hit the limit up, which can yield substantial profits in the short term. However, after a significant increase, they often experience a sharp drop. Therefore, participating in the daily limit up stocks not only brings high returns but also carries high risks.
From the timing of intervention, the earlier a stock's limit up time leaves the market, the better the next day's trend. If a stock reaches the limit up before the closing, the next day's trend is not ideal.
To catch up with the limit up board, it is necessary to buy at the moment when the main force closes the limit up board, in order to obtain the profit of the inertia rise the next day. However, as the main players pay more and more attention to the buying method of the limit up board signal, if the limit up is not blocked on the same day, it may continue to open lower the next day, resulting in huge losses. Therefore, investors need to pay attention to controlling their positions and risks. At the same time, we should actively learn about the strategy of chasing the limit up board to help everyone improve their winning rate.
Key points to note:
1. Observing the strength of the market, especially in extremely strong markets where around 5 stocks hit the daily limit up, it is important to boldly follow the limit up board. A very weak market must not catch up with the daily limit up.
2. When the entire sector is launched, it is important to catch up with the leader who reaches the limit up first, especially in bull markets or extremely strong markets. To catch up, it is important to catch up with the first one to reach the limit up. During a period of market downturn without a limit up, if there is a strong rebound or reversal to catch up with the first limit up, the stock is likely to be the leader in the future, and even if it rebounds, the strength will be much greater than other stocks.
3. If there is a volume that can cooperate, and if you find a volume of three or more digits pushing towards the limit up during the trading session, you can immediately catch up.
4. The trading volume released by the chasing stocks on the same day should not be too large, usually 1-2 times that of the previous day, and can be easily calculated half an hour after the opening of the day.
5. Search the price increase ranking list in a timely manner during the trading session, and review the current prices, previous trends, and circulating size of stocks close to the limit up to determine whether they can be used as intervention targets. When the increase reaches 9% or more, be prepared to buy to prevent the main large orders from hitting the limit up and not being able to buy.
6. We must adhere to this operational style and avoid any sudden changes in thinking, in order to avoid getting caught up in other stocks and losing the opportunity to attack when the market has no limit up.
To achieve victory in a hundred battles using the limit up board strategy, multiple conditions need to be used in combination. When one of the stocks meets all the conditions we need to buy, it's best to boldly buy. This way, we can fully utilize the magic of the limit up signal buying method and make better profits.
Buying principle
（1） It is best to hit the limit up within 20 minutes after the opening, and in the case of a general market index, it can be extended to 30 minutes (must be followed). In a very good situation, there will be more, and at this time, stock selection should follow the following plan:
1. The consecutive limit up gives way to the initial rise;
2. Give way to smaller disks for larger ones;
3. High performing individuals give way to low performing individuals (short-term behavior);
4. The higher priced ones give way to the lower priced ones;
5. Without subject matter or rumors, give way to those with subject matter or rumors;
6. Weak villages give way to evil villages;
（2） If the stock is in the late stage of the first phase of the stock price treasure hunt chart or the early stage of the upward phase, the limit up time can be extended to before 11am, but it is best for the index to close at a bullish line on that day (when buying)
（3） Stocks that open at the limit up price generally need to be pursued. This type of stock has the following trends:
1. Even if an order is placed, it is difficult to buy from the daily limit up to the close, as it occurs during the call auction. The banker has accumulated a large amount of buying orders at the limit up price, so all selling orders have been given to the banker;
2. After the opening, even if it is opened, it quickly rises to the limit up when it falls to 7% -8%. This type of stock may be considered for purchase if it meets the requirements of the first clause. Due to the aggressive tactics of the market makers, it is important to be aware of the potential risks involved;
3. At the opening, this type of stock is immediately opened and continues to decline, and it is firmly avoided.
4. Do not buy stocks that have already hit the limit up again the next day.
5. Stock analysts usually do not buy stocks that hit the daily limit on Monday, as they are listed on weekends.
6. Stocks that have fallen for too long and rebounded are generally not bought.
The timing for selling limit up stocks can be to sell them when the 5-day moving average is flat or turns, or to sell them immediately when the red bar in the MACD indicator is shortened or flat. If the stock price reaches the limit up again around 30 minutes the next day, boldly hold it. If it does not reach the limit up the next day, it can be immediately sold when the stock price platform adjusts for a few days after rising for a period of time, or it can be sold when it rises the next day. If the stock does not rise within three days after catching up, it should be sold out to avoid delaying the opportunity or being deeply trapped.
