Most stock investors have this experience: once a new hot topic or sector emerges, if they dare not chase after it, they will lose the opportunity to make profits. But if you don't catch up well, you will suffer from deep entrapment. How can we achieve chasing after the rise without being trapped? I have found through practice that if we can grasp the following points, we can to a considerable extent achieve chasing after the rise and making money without being trapped.
(1) Chasing price increases requires timely and decisive action.
Many big bull stocks will experience a sharp upward trend after their launch, so chasing the rise should be timely and decisive. Because catching up at this time not only brings significant benefits, but also reduces the time cost. For example, shortly after its opening on December 3, 2009, FiberHome Communications broke through the platform position it had held for five months, and it was a high-volume breakthrough, which meant that the rise of this stock had begun. If you catch up promptly and decisively, not only can you enjoy the daily limit up profit, but you will also have at least 25% profit in the following few trading days.
(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. In the 2007 bull market, non-ferrous metal stocks rose wildly, but in the bear market of 2008, almost all of these non-ferrous stocks were hit back to their original form and fell to the starting point at that time. So at this point, it should be the low point of the stock price, even if there are occasional new lows, it won't fall much. So, chasing these colored stocks at a low price can basically outperform the market in 2009.
(3) Chasing the stage of decline and consolidation.
When a stock has already launched its market trend and has been rising continuously for several days, it should not be pursued again, but should wait until the stock rises and falls for a period of time before chasing. Throughout the trend of bull stocks, there will be waves of pulse like rises, so chasing after a fall can reduce risk. Normally, a bull stock will not have a market trend for a few days. It will continue to rise, often after a wave of gains, it will fall back for a period of time and then continue to rise. If it is a big bull stock, it may even experience several times the increase. After grasping the characteristics of the operation of bull stocks, we can catch up with the decline and consolidation stage of bull stocks.
Chasing the rise and killing the fall focuses on understanding the trend, that is, the trend of funds. That is to say, it reflects the momentum of funds in the operation process on the market. The stronger the momentum, the relatively lower the risk of chasing the rise, and vice versa, the higher the risk. Therefore, many investors who have conducted research on chasing gains and killing losses have summarized many relevant experiences in their specific operations. In fact, it's about the momentum of research funding. It's already quite rare to reach this point, but as a market operator, it's just one aspect.
Chasing the decline and killing the rise focuses on grasping the timing, whether it is the timing of the overall market or the timing of individual stocks. Choosing this timing indeed requires greater effort to achieve, so compared to chasing the rise and killing the fall, chasing the decline and killing the rise is much more difficult. This' chasing down and killing up 'cannot be used every day, so few investors are likely to study and understand it. But chasing the decline and killing the rise is what must be studied after reaching a certain level of short-term operation, in order to adapt to the complete market.
Develop different strategies and operational methods based on market changes. Chasing the rise and killing the fall is the main choice in a bull market, while chasing the fall and killing the rise is the main choice in a bear market. Therefore, before making any operations, it is necessary to have a clear concept of the market state. In addition to judging the market situation, another commonly used method of judgment is to boldly chase up and down when the market's funds are above 8 billion yuan; When the funds in the market are below 8 billion, chasing the decline and killing the rise is the main choice. Having learned the two basic short-term trading methods mentioned above, we can apply short-term trading in any market situation.
