In the A-share market, it is already a battlefield where market makers and retail investors compete, so why do retail investors suffer losses? The reason lies in three aspects: stock selection, buying points, and selling points. Every stock investor has a dream in their heart, which is to catch more limit up boards when trading stocks. So, how can we successfully and steadily catch the limit up boards? How can one maximize their own profits? To survive in the cutthroat and law of the jungle stock market, one cannot do without a set of winning methods, skills, and self-protection discipline.
Many short-term investors are so excited when they see a good performing stock that they cannot immediately build a position and buy it, which often results in them being trapped in the stock they are chasing after. Of course, there are also some experienced veteran investors who will use the skills they have learned over the years to analyze the technical or fundamental aspects of the stock before adding it, greatly reducing the risk of their stock operations. Based on their experience, in order to successfully chase after the rise without being trapped, one still needs to master certain skills.
The principle of chasing price increases
1. Chasing the rise should be timely and decisive. Many big bull stocks will experience a sharp upward trend after their launch. So, chasing after the rise should be timely and decisive, because chasing at this time not only brings great benefits, but also has lower time costs.
2. Chasing the low stock price. The best stage for chasing gains is when a stock starts at a low level. Although there may be some fluctuations after a wave of price increase, it will not be lower than the price you are chasing. Of course, how to grasp the "low position" is a problem. Generally speaking, when a stock is at a relatively low price, there are more investors willing to buy at this price and the trading volume increases, which is an opportunity. Especially in the later stages of a major bear market, when a stock returns to its original starting point, it should at least be at a low level.
3. Chase stocks that quickly hit the limit up. Almost all major stock market trends start from the daily limit up. So, it is important to pay attention to individual stocks that surge directly to the limit up board shortly after the opening. Of course, not all stocks that are about to hit the limit up can catch up. If a stock suddenly increases its trading volume and reaches the limit up at a high level, do not blindly chase after it, as it is likely to open high and go low afterwards. Conversely, for stocks that have been well organized on the platform, once they increase their trading volume and reach the limit up, they can immediately catch up.
Three magical buying points for chasing price increases:
1. Place a buy order before the last large order during the limit up period. As the saying goes, quantity comes first. When the main force releases a huge amount, they should immediately take action. Those who are quick witted and quick witted in the short term win.
2. After being blocked by a large order and hitting the daily limit up, I queued up to place a buy order. Similarly, the earlier you place an order, the greater your chances of buying. Never give up hope at any time. Based on practical experience, the first limit up of a stock price often results in an intraday opening. 3. Timely place orders to buy when the limit up is reached.
Practical techniques for chasing price increases
1. There are three ways to chase after the rise of a strong sector: usually, there will be three consecutive limit up stocks that become the leader, and usually after the third limit up, there will be a short-term increase of more than 30% in the future, which is a winning move in the limit up strategy. The essence of the "Three Outsiders" technique lies in the fact that the main force has a short time to build positions, rises quickly, and comes and goes like wind and electricity, making it one of the must do strategies for short-term profits. Real time application of this technique: Adjust at a high level for about 5 days. If the stock price does not experience a deep correction, it can be determined that the main force of the stock is not in a hurry to leave and can selectively enter one-third of the position.
2. Opening the gate and releasing water to chase the rise method: After a round of decline, the market will switch to new hotspots and leading stocks and leaders. Usually, the first limit up board of leading stocks will open the gate and release water, which is the best time for short-term experts to chase the rise and buy. Opening and entering conditions: 1) Stocks that open at the daily limit up are not eligible for this strategy. 2) Continuous limit up time is required to be at least 15 minutes. 3) It is best to lock up stocks with a daily limit up in the morning.
3. Bulls and bears are unbeaten, chasing the rise. Individual stocks rely on the bottom pattern (V-shaped, W-shaped, arc-shaped bottom) to rise and impact the large moving average (i.e. annual line). If the limit up is exceeded, they can directly chase the rise and buy on the limit up board. The unbeaten bull and bear is a winning candlestick pattern. The no limit up signal is inaccurate.
Notes on chasing price increases:
1. Before chasing a rise, it is important to set a stop loss level and determine your approximate profit target;
2. Don't operate too frequently when chasing after the rise, because if the frequency is high, once the number of mistakes increases, it will affect the mentality of investors;
3. When chasing after a rise, remember to lock in profits in a timely manner, do not have a mentality of luck, and be rational rather than emotional