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? Through practice, it has been found that if one can grasp the following points, they can to a considerable extent achieve the goal of chasing after price increases and making money without being trapped.
Firstly, 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 catching up at this time not only brings significant benefits, but also reduces the time cost. 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.
Secondly, keep up with 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.
Thirdly, follow 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. Observing 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.
Fourthly, chase stocks that quickly hit the limit up. For small and medium-sized investors, chasing the limit up of individual stocks is a very courageous thing. Many retail investors dare not chase after stocks that quickly rise to the limit up, and as a result, they open high again the next day, or even rise directly to the limit up. At this point, I would exclaim, if only I had caught up in time yesterday. In fact, 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 in 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 in the future. For stocks that have been well organized on the platform, once they surge in volume and reach the limit up, they can immediately catch up.
Number five, stocks with higher volume chasing ratios. Volume ratio refers to the ratio of daily trading volume to the trading volume of the previous 5 days. If the volume ratio is larger, it indicates that the trading volume on that day is more significant, which also proves that the stock's rise has been sought after by investors. So, the chasing volume is more stable than the top stocks. Some stocks experience a surge in trading volume at the end of the day, which is more or less influenced by speculation, as many main players intentionally push up rapidly in the end of the day to attract retail investors to follow suit, resulting in a short opening and a low closing the next day. So, the attention ratio is an issue that must be paid attention to when chasing high.
