When investors choose industry-leading stocks, they need to pay attention to the upward trend of stocks with strong industry influence, stock fundamentals, stock trading volume, stock price trends, industry concepts, technical indicators, and market trends for reference.
In general, when choosing industry leading stocks, it is necessary to pay attention to whether the market trend is stable and fluctuating or rising, and the industry concept of the stock belongs to popular industry concepts, which are in the process of developing positively. The fundamentals of stocks are relatively stable, and listed companies have a high market share in their respective industries.
Moreover, the trading volume of stocks has formed an upward trend and is in a state of high volume activity. Short term technical indicators of stocks also need to be in the long range or long buying point. For example, technical indicators such as moving averages, CCI indicators, RSI indicators, KDJ indicators, DMA indicators, etc. are above the median line, and the technical chart is in a strong bullish range or a bullish buying signal.
Usually, leading stocks have a significant impact on industry concepts. So, investors can observe the performance of other stocks in the industry concept to reflect the development of the industry concept.
2、 What are the characteristics of leading stocks?
(1) Leading individual stocks must simultaneously meet the low price golden cross of daily KDJ, weekly KDJ, and monthly KDJ.
(2) Leading stocks usually have low-priced stock learning videos, usually not exceeding 10 yuan, because high priced stocks do not have room for speculation and cannot become leaders. Only low-priced stocks can be sought after by investors.
(3) The circulating market value of leading stocks should be moderate and suitable for large capital operations. Both large cap stocks and small cap stocks cannot serve as leading stocks.
(4) Leading individual stocks usually hit the limit up against the market trend at the end of the market's decline and panic in forward foreign exchange trading, hitting the bottom early or starting ahead of the market, and can withstand a round of downward tests that trap the market.
(5) The bias indicator for leading individual stocks generally needs to start from the limit up board, and stocks that cannot reach the limit up are difficult to become leading stocks.
In summary, we know that leading stocks are not static. In the short term, leading stocks not only have the strongest explosive power, but also have huge gains. As long as we choose the right leading stock, we can basically make money.
