The legendary woman who was reborn from the ashes
Chapter 111 Analysis of the opening of the daily limit
In the fierce game of the stock market, the daily limit, as a significant sign of soaring stock prices, often attracts the attention of countless investors.
However, the daily limit does not always mean a continuous rise. There are many complex factors behind it that may lead to the lifting of the limit. Let's take a deep look at the reasons for the lifting of the daily limit and analyze them vividly with specific cases.
First, heavy selling pressure is an important reason for the opening of the daily limit.
When the main force fails to fully collect chips and there are many retail investors in the market, especially in large-cap stocks, once the stock price rises sharply or hits the daily limit, it will face huge selling pressure.
This selling pressure will be more significant, especially when the stock price is close to the previous high or the trading concentration area. For example, after a large-cap stock has experienced a period of growth, when the stock price hits the daily limit, the daily limit will be opened quickly due to the strong willingness of retail investors to sell.
Second, the main force selling is also a common reason for the opening of the daily limit. After the stock price has risen sharply in a short period of time, the main force often uses the daily limit as a good opportunity to sell.
They create the illusion of a large order through clever order placement and order cancellation operations to attract followers, and then suddenly cancel orders and sell in large quantities, trapping investors who are chasing the rise and catching many investors off guard.
Third, the exhaustion of good news is also an important factor leading to the lifting of the daily limit. In the stock market, good news can often drive up stock prices, but once the good news is fully digested by the market, stock prices lose the momentum to rise further.
At this time, even if the stock price hits the daily limit, it is often difficult to maintain the closed state. Such stocks usually open with a daily limit, but the limit appears during the trading session, and the trading volume is often greatly enlarged.
Fourth, market disapproval is also one of the reasons for the lifting of the daily limit. When a large fund forcibly pushes a stock to the daily limit, if other funds are not optimistic about the sector or theme and are not willing to follow suit, then this force of pushing up will find it difficult to maintain the closed state of the daily limit.
In this case, the funds that originally pushed up the price will often choose to cancel their orders and leave the market, resulting in the daily limit being opened.
Fifth, the performance of non-leading stocks after the sector starts is also a key factor affecting whether the daily limit can be closed. In the overall rising market of the sector, leading stocks tend to perform strongly and be the first to reach the daily limit.
However, many short-term investors are unwilling to line up to chase the leading stocks, and instead choose to follow the trend of stocks with smaller gains. Although these follower stocks may also reach the daily limit, due to the lack of sufficient follower support, their daily limit orders are often small, making it difficult to resist the selling pressure and open the board.
Sixth, factors such as a sudden dive in the market, poor technical patterns and major players' wash-out may also lead to the opening of the daily limit.
When the market plunges, market sentiment is easily affected, investors lack confidence, and the daily limit is difficult to maintain.
Individual stocks with poor technical forms often find it difficult to continue to rise even if they hit the daily limit. In addition, the main force may deliberately open the daily limit to test the market's reaction in order to clean up floating chips or adjust the chip structure.
In summary, there are many reasons for the opening of the daily limit, involving market psychology, main force behavior, technical forms, etc. For investors, if they want to succeed in daily limit trading, they must have a deep understanding of these reasons and learn to analyze and judge.
It is also crucial to continuously accumulate experience and summarize lessons, and gradually form a set of money-making models that suit you.
After a period of rising, once the leading stocks show signs of adjustment, those speculative stocks that follow the trend will often quickly fall into a vortex of panic decline like a flock of sheep without a leader. In this atmosphere, market investors often find it difficult to remain calm, which accelerates market volatility.
When the market plummets, it is like a sudden storm that throws the originally stable market order into chaos.
"When the nest is overturned, how can the eggs remain intact?" Even the most powerful main force has to choose to temporarily retreat. Those seemingly unbreakable daily limit boards will also lose support due to the plunge of the market. Investors choose to withdraw one after another, and the daily limit boards are naturally difficult to maintain.
For the main funds, the decline is not all bad. At the bottom or middle-low area of the stock price, the main force often takes advantage of the panic in the market and adopts the strategy of pulling the daily limit to absorb the goods.
They will first use strong buying to push the stock price up to the daily limit, and then use large orders to break it, creating a panic atmosphere and forcing timid investors to rush to sell. At this time, the main funds will take the opportunity to absorb these chips and prepare for the subsequent rising market.
In the process of absorbing the goods, the main funds will also place a small buy order at the "buy one" position, giving people a feeling that the daily limit is about to be opened. They create market volatility by repeatedly opening the daily limit to attract more investors' attention and induce them to hand over their chips.
For investors, it is necessary to be extra cautious when hitting the board. They should choose those leading stocks that are at the bottom or in the middle and low areas, with a long-term arrangement of the moving average system, a moderate circulation, and belong to the current hot themes as targets.
We must also pay close attention to the trends of the broader market and the movements of major funds, and follow the trend, so that we can remain invincible amid the volatile stock market.
After selecting the target stock, investors also need to develop a suitable strategy for buying stocks, including determining the timing, price, and position of the purchase.
In the operation, investors can formulate personalized strategies based on their risk tolerance and investment goals. Investors with higher risk tolerance can choose to intervene decisively when the stock price breaks through important resistance levels; while investors with lower risk tolerance can choose to buy on dips when the stock price falls back to support levels.
At the same time, investors must continue to learn and accumulate experience to improve their investment level. Market changes are eternal, and investors must constantly adapt to market changes and master new investment skills and methods. Through continuous learning and practice, they can gradually improve their investment capabilities and achieve better results in hitting the board.
Hitting the board is a high-risk and high-return investment method that requires investors to have deep market insight and rich practical experience.
Although hitting the board may bring huge returns, the risks cannot be ignored. For ordinary investors, if they do not have sufficient investment experience and market insight, it is best not to try the hitting board operation easily.
A sound investment strategy and long-term holding are the keys to success.
Any stock may encounter unexpected situations due to various factors. Investors are advised to do sufficient research and preparation before participating in the board-hitting, and understand the overall trends and hot spots of the market.
At the same time, you should also conduct in-depth research on the target stocks, including their fundamentals, technical aspects, market sentiment, etc. Make sure your investment behavior is rational and responsible.
You'll Also Like
-
Houfu Key Class
Chapter 548 44 minute ago -
The Record of Righteousness
Chapter 227 2 hours ago -
God rewards hard work: Farming and cultivating immortality
Chapter 552 3 hours ago -
I work as a security guard at Marvel.
Chapter 173 4 hours ago -
Wizard: I have an inventory
Chapter 65 4 hours ago -
The Unspeakable Diary
Chapter 583 4 hours ago -
Since the Spring and Autumn Period and the Warring States Period, he has been regarded as a god.
Chapter 232 4 hours ago -
Iron Cross Fire
Chapter 535 4 hours ago -
Global Flooding: I built a city
Chapter 726 5 hours ago -
Enter the world of female immortality novels
Chapter 205 5 hours ago