Chasing the rise is a method of following the trend, usually referring to investors taking advantage of the situation, rushing in at the rise, in order to sell at a higher price and make a profit. This approach can easily generate profits when the overall trend is reversed and the market is bullish; But once the highest price is reached at the end of the market and cannot be sold, there will be a situation of heavy losses, so the risk is also relatively high.
The essence of short-term expert's strong stock strategy
1、 Concept: Only focus on chasing the rise of super strong stocks and waiting for rabbits (position management is essential, otherwise you will take the elevator). The concept is to specialize in popular stocks, leading stocks, and leading stocks. Operation is waiting, discovering, following, and selecting stocks. Stock selection is important and a decisive prerequisite, but it is not the whole story; Waiting requires absolute patience; Discovery requires experience to confirm; Following is the least important buying action, requiring courage and the determination to take action.
2、 Ultra short: Any operation method, even a small pullback in a downtrend channel, as long as it does not participate in any level adjustment and buys for immediate profit, is short-term, in other words, does not participate in any nature consolidation! Short term trading is a technique of seeking stocks that represent a certain market significance in terms of technical form and capital intervention, and then combining it with proficient position management to make short-term and rapid profits. When many retail friends are studying how high a certain technology may cause stocks to rise on a candlestick chart without paying attention to the market implications, I know they are all wasting their time.
3、 Leader: My experience is that the prerequisite for doing a good job in the short term is to choose stocks and not make mistakes in judging the trend of the time slot! The attacking power of stock selection must be sufficient, either go to heaven or go to hell. When there are several stocks with consecutive limit up cycles in a market, no matter how optimistic one is about one of them, only the one with the most limit up cycles will have the strongest impact. However, whoever reaches the limit up first is the leader, and whoever has more blocked orders is the leader in the market? That's too superficial. Periodic leaders or popular stocks are often randomly generated. At the moment when the market is downgraded, several strong individual stocks will appear at the same time. Whether a stock can become a leading or popular stock depends on whether it has a theme that is easily recognized by the market, which is much more important than fundamentals. The faucet is not about the size of the plate, but about the timing of activation. As long as it continues to rise before the overall market and can drive related stocks to rise, it is a leader.
The main characteristics of strong stocks are:
1. High turnover rate: The daily turnover rate of strong stocks is generally not less than 5%, and on some trading days it can reach more than 10%, and may even reach 20% to 30%.
2. Has a sector effect: Strong stocks may be the leading stocks in a market trend or representative stocks in hot sectors. The rise and fall of strong stocks will affect the rise and fall of stocks in the same sector.
There are three opportunities that must be seized when buying any strong stock.
Firstly, when digging a hole to wash out the market, buying is necessary. This digging process must be characterized by panic washing out, otherwise the main force will not be able to wash out short-term floating funds in the market. Therefore, in terms of market sentiment, whoever can overcome panic and boldly buy will be able to capture the bottom of the main force.
Secondly, buy around the cost line of the main force's warehouse construction. Generally speaking, the main force will not easily expose their cost line. However, short-term observers should pay attention to the fact that when the main force hits the market and shakes its position, the panic drop will instantly suppress the stock price. When the chips cross the peak valley dense area in the early stage, the buying performance during the trading session. Generally, when the main force starts a stock, there will be a rapid downward trend towards the medium-term moving average in the market. This sharp decline is a good time for short-term chips to buy in advance. This position is roughly 3-5% below the moving average level. Generally speaking, there will be three waves of rapid rebound on the daily intraday chart. At this time, it is necessary to buy decisively, and the second buying point before the end of the trading session will quickly rise 30 minutes before the closing, which will become the second buying point before the breakthrough.
Thirdly, break through the long-term cervical pressure level. This time is usually more than three months, and those less than three months are prone to falling back into the previous box. Generally, technical analysts consider this position as a pressure level and habitually recommend investors to sell high. However, in the process of repeatedly rising, the main force collects high selling chips from short-term investors. If we observe the trading volume, we will clearly find that every time the stock price rises to the neck line level, the trading volume decreases repeatedly. Moreover, when the last breakthrough occurs, it does not require much volume to quickly break away from the neck line level, indicating that the chips continue to be highly concentrated in the main force. If the lower low points are connected point by point, it will be clear that the low points are rising one by one. This indicates that the problem is that the main force cannot resist the urge to raise prices to collect chips, and at this time, the market fluctuates back and forth. It provides more convenience for the main force to collect chips.
Operation methods for strong stocks
1. Hold onto the leading stocks and don't move: Leading stocks usually rise in volume or close the limit up first when the market is sluggish. Bold investors can hold onto the leading stocks in a timely manner and wait for the market to end or for the leading stocks to clearly form a head before selling.
2. Engage in strong stocks with high turnover rates: Many people are afraid to pursue leading stocks, or wait until they have thought it through and want to pursue them but cannot. At this point, it is necessary to promptly search for strong stocks with high turnover rates in the same sector.
3. Intervention in the technical correction process of strong stocks: Strong stocks, due to high market attention and possible manipulation by main players, generally rise rapidly, with short correction time and shallow amplitude.
4. When there is negative news about a strong stock: During a round of rise, there may be fundamental negative news about the strong stock, and the stock will experience a short-term decline. Due to the fact that the hot spot in the sector has not yet subsided and the main funds are still among them, there is a high probability that the main force will rise again after the stock stabilizes briefly.
How to operate short-term strong stocks
Conditions for selecting individual stocks:
(1) The first limit up in recent times. The first limit up represents the emergence of a critical point for short-term upward movement, while the second and third limit ups do not have this nature, and their risks are gradually increasing.
(2) Volume up. When the daily volume ratio is above 1.5, the volume level is 2 to 3 times the daily volume of 5 days. But excessive trading volume is also not good. If the daily trading volume is 5 to 10 times the daily average volume and the turnover rate exceeds 10%, the limit up that occurs often cannot be sustained.
(3) Before the limit up day, there is a momentum building movement or momentum building pattern, and the 15 minute and 60 minute candlesticks have formed momentum waiting to be broken.
(4) There is a gap at the opening, and it is best if the gap is not closed, as this indicates that the main force is prepared.
Buying strategy:
(1) During the period from 9:25 to 9:30 after the call auction, identify three target stocks. Condition: Open at least one point higher; Magnify the quantity ratio to 1.5 times or more; The 15 minute and 60 minute candlesticks have formed a momentum breakthrough pattern; There hasn't been a limit up in the past period, which is a recent hot spot sector.
(2) During the half-hour period from 9:30 to 10:00, if there is a significant increase in trading volume, a half position can be opened; Buy the other half when the limit up is about to occur, and stop buying if there is no limit up. In principle, it is not to buy until the limit is reached.
Post limit up strategy:
If the stock price continues to rise the next day with a strong upward trend, it can be held in the short term. If the market opens high and weakens the next day, immediately take profits or close positions and exit the market; If trapped the next day, stop loss and exit.
Selling strategy:
If a short-term profit of more than 20% or a stock experiences a heavy volume and negative closing, especially when the trading volume sharply shrinks after reaching a high volume, then it is considered to be eliminated in the short term.
When using the limit up buying method, it is necessary to be very careful, both bold and meticulous, and agile and decisive, especially considering the strength of the market. Generally speaking, operations are more likely to succeed in strong markets, while the probability of false breakthroughs is higher in weak markets. In addition, the selection of individual stocks is particularly important. Generally, strong leading stocks have a higher success rate in operations, while the success rate of follower stocks may be discounted. Moreover, it is not advisable to buy heavily in positions, as this is a highly speculative activity with high returns and risks.
