Dragon Weekly: Which board is better to hit the daily limit up?

The most popular thing to see in short-term trading is the limit up, which is also a characteristic of a stock's short-term strength. But we need to recognize that short-term speculation has a higher component, so we also need to consider the ratio between risk and return. The lower the position of intervention for hotspots and leaders, the better. As for intervening after a few limit ups, it needs to be analyzed based on the current situation.

And regardless of the market's performance, there are stocks that hit the limit up almost every day. Shouldn't we pay attention to these stocks?Dragon Weekly believes that this is not necessary. We should do a good job of reviewing stocks after the market closes, classifying and sorting out stocks that have hit the daily limit up. The significance of reviewing stocks is to discover leading companies and hot topics.


To catch up with the limit up, it is necessary to first understand the cycle


Long Weekly believes that not all stocks that hit the limit up can be caught up with. Some are leading stocks that hit the limit up, while others follow the trend and hit the limit up. Moreover, hotspots are subject to rotation and switching, so we must confirm that the stock with a limit up is still in the initiation or confirmation stage, and only then is it worth taking the risk of chasing the rise. And we only focus on leading and front row stocks, as chasing price increases carries high risks. We need to focus on the strongest stocks to maximize our profit opportunities.


Both indices, hotspots, and leaders have their own cyclical characteristics. So when choosing the timing of intervention, we should choose when the stock has just started, that is, when the stock price is still relatively low. If you wait until the stock price has risen for a period of time before thinking about intervening, sometimes it has been five or six consecutive limit up periods before you want to intervene. At this point, the risk outweighs the opportunity.


Buy leading positions on the second board


After understanding the cycle, Long Weekly would like to talk to everyone about which ones are more suitable to buy after the limit up. Normally, this opportunity would appear the day after the first board. Why is it such a time point? Dragon Weekly believes that a hot topic cycle is about one week, so in terms of cost-effectiveness2This position has certainty and can also confirm its status.


Of course, the situation mentioned by Dragon Weekly refers to stocks that have started at a low level. If they have reached the limit up at a high level, it is not recommended to buy them. Combined with the cycle and hot topics, the leading second board is undoubtedly the most cost-effective position. But this still requires us to have a thorough understanding of the subject matter. The market has undergone significant changes compared to before. Although short-term themes are still the main focus, the fundamentals of individual stocks have also been taken into consideration, unlike in the past where only related concepts could be used to speculate.


Trading method with limit up


Finally, Dragon Weekly would like to talk about specific trading methods. Actually, for most investors, the risk of hitting the stock market is too high. I suggest that everyone familiarize themselves with the operation of buying low first.