1、 When choosing hot stocks, one should consider their own characteristics

There are various types of hotspots: short-term hotspots with a duration of only a few days, which are suitable for short-term experts to participate in. Investors who are skilled in short-term operations can choose this type of hotspot stock after establishing a sound risk control mechanism and careful preparation.

There are also shorter duration intraday hot topics, which can quickly rise in stock prices due to unexpected news, but quickly fall back after a flash in the pan. This type of hot stock is only suitable for investors who already hold the stock to sell, not for buying.

There are also hotspots with strong stage characteristics that rise with the rise of a wave band market and disappear with the decline of a wave band market. These stage hotspots are more suitable for investors who are good at operating in the mid line band.

2、 To choose "leading" hotspots and avoid "snake tail" hotspots

The so-called "leading" hotspots refer to those hot stocks that stabilize before the market, increase volume before the market, start before the market, have significant gains, and lead the market trend. Choosing such hot stocks often provides more investment opportunities and lucrative profit margins. The "snake tail" hot spot refers to those stocks that increase volume later than the market and start rising later than the market. When they start, it is often the day when the market reaches its peak, so it is not advisable to choose the latter for investment.

3、 Focus on the cohesion of funds in hot topics

Both are hot stocks, but their attractiveness to market funds is different. The movement of stock prices ultimately relies on the driving force of funds, and hotspots with greater financial cohesion have more potential for upward movement.

4、 Focus on the market appeal of hot topics

Taking financial stocks and glass stocks as examples, there are not many stocks in these two sectors, and they are both relatively active. However, their influence on the entire market is completely different. When glass stocks become hotspots, they often have to pull and sing on their own, and cannot form a synergistic effect in the market. Once financial stocks become active, they will have a significant impact on the entire market, and sometimes even drive a market trend. Investors must not underestimate sectors like financial stocks that have strong market appeal when choosing hot stocks.

5、 Pay attention to the sector effects of hot stocks

There is an old saying in China: 'It's hard to sound with one hand alone.' The hotspots of a single stock are often difficult to sustain, but the mutual support and common development between stocks in the same sector will form a hot spot sector with long-term vitality. Especially after the formation of sector effects, some individual stocks will receive positive attention from mainstream funds and become the focus of market attention. Investors holding such stocks can often achieve extremely lucrative returns.

6、 Pay attention to the life stage of the hot topic

Hotspots also have a lifecycle, which can be divided into early childhood, growth, maturity, and aging stages. In terms of absolute stock price, the stock price in the early childhood stage is the lowest. If investors intervene at this time, they will make the most profits after the rise of hotspots. However, the vitality of hotspots is also the most fragile in the early childhood stage. Due to various uncertain factors, even if incremental funds are introduced, it cannot guarantee that the stock will definitely have a good upward trend. The stage that truly has vitality and is most suitable for intervention is the growth period of hotspots. During this stage, the stock price rises the fastest, is least affected by external factors, and is also the most profitable stage. However, many investors have concerns about hot stocks in the growth stage. Because many investors are most concerned about how much a hot stock has risen when choosing it, and if it has risen a lot, they are unwilling to chase after it. This is actually a typical investment misconception. The most important thing when choosing a hot stock is not how much it has risen in the past, but how much it can still rise in the future. To assess the future growth of a stock, it is necessary to analyze whether the stock has undergone a process of accumulating momentum. The more fully accumulated a stock is, the greater its potential for upward growth. When analyzing the stock's momentum, attention should be paid to whether the stock has undergone a long-term bottom building process before its launch, whether there is a chip collection process, whether the indicators have been in a long-term oversold passive state, and whether there are signs of irregular amplification in trading volume.