Practical skills for stock selection and trading in hot topic sectors

Basic principle: Is there a critical point for short-term stock price increase based on technical and news reasons? If you buy at the critical point of stock price increase at this time, the probability of short-term rise is extremely high, usually with an increase of more than 10%, and sometimes even up to 50% or more? Timing selection: When the market is in the midst of a breakthrough or a mid-level uptrend, if the trading volume continues to increase and individual stocks are very active, then this is a good time to chase after the rise. Generally speaking, the occurrence of limit up in individual stocks is closely related to the overall market. When the market is strong, individual stocks often continue to rise after reaching the limit up; But when the overall market is weak, the daily limit up of individual stocks often lacks sustainability, making it easy to be trapped at high levels in pursuit of gains?

Conditions for selecting individual stocks: (1) The first limit up in recent times represents the emergence of a short-term upward tipping point, while the second and third limit ups do not have this nature and their risks are gradually increasing; (2) Volume increase, 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 daily limit up, 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 through; (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 rise. If there is no limit up, stop buying. In principle, do not buy until the limit up is reached. Post limit up strategy: If the stock price continues to rise the next day with a strong upward trend, can it 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 the short-term profit is more than 20% or the stock experiences a heavy volume and negative closing, especially when the trading volume sharply shrinks after reaching a high volume, then consider short-term exit. 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.