The legendary woman who was reborn from the ashes

Chapter 116 Selection of Stocks Prone to Daily Limit

In the fierce competition of daily trading, stocks that hit the daily limit are like stars on the stage, always attracting the attention of investors.

Those keen investors will patiently read the K-line charts of these daily limit stocks every day, like archaeologists carefully searching for traces of history.

As time went by, they gradually discovered some hidden rules, which acted like guiding lights, illuminating their investment path.

Among the stocks that have reached the daily limit, there is a special group, that is, new stocks. New stocks are like unpolished jade. Because they are not burdened by historical locked-in shares, their stock price trends are more flexible. When the main funds have accumulated enough chips, they can easily push the stock price to the daily limit, or even achieve the feat of continuous daily limits.

For investors, secondary new stocks are like a blank sheet of paper, without complicated background and history. Just by paying attention to their fundamentals and capital flows, they can grasp their trends more accurately.

Oversold stocks are also treasures in the eyes of investors. In the ups and downs of the stock market, some stocks have experienced excessive declines in share prices due to poor overall trends, deteriorating fundamentals or major negative factors.

As the old saying goes, "When adversity is over, good times will come." Stocks that have fallen too much often contain strong momentum for a rebound. Once the rebound starts, these stocks often appear with a daily limit, bringing rich returns to investors.

Before and after the mid-year and annual reports, stocks with high dividends and bonuses always attract much attention. As a special way of equity expansion, high dividends and bonuses can not only increase the company's market value, but also bring tangible benefits to investors.

When a company releases news of high bonus and dividend, its stock price is often enthusiastically sought after by the market. After the ex-rights, due to the lower stock price, there is more room for the main funds to pull up, which also makes it easier for high bonus and dividend stocks to reach the daily limit after the ex-rights.

Although the stocks that hit the daily limit may seem elusive, as long as investors observe and study carefully, they will be able to discover the laws and mysteries. These laws and mysteries are the key to investors' success in the stock market.

In the capital market, it is a big challenge for a stock that originally cost 20 yuan to double to 40 yuan. If this increase is not supported by solid performance, then this price is often regarded as overvalued. When a company launches a striking high dividend and bonus plan, such as 10 shares for every 10 shares, the situation changes dramatically.

After such distribution, the stock price instantly halved to 10 yuan when the rights were deducted. Even if the stock price rose by 200% afterwards, it only reached 30 yuan, which seemed to give people a relatively "safe" illusion. However, it is this seemingly "safe" price adjustment that often becomes the catalyst for the stock price surge.

When the news of high bonus and dividend is released, investors rush in to grab the rights like bees smelling honey. Especially when the bonus and dividend plan exceeds market expectations, those keen investors and major funds buy without hesitation, pushing the stock price straight to the daily limit.

After the ex-rights, as long as the main funds have not left the market before then, there will usually be a strong wave of rights-filling market. On the ex-rights day, the main funds often choose to ignite the market's enthusiasm by way of daily limit, causing the stock price to soar wildly in the final stage.

Let's look at those stocks that continue to refresh historical highs. They are like warriors in the stock market, breaking through the shackles of history time and time again, showing the firm confidence of the main players.

When the stock price hits a new high, all the locked-in chips are released one by one, and the selling pressure is also reduced. This makes it easier for the main funds to push up the stock price, and often a good show of limit-up can be staged. In particular, those varieties that hit a new high with a shrinking volume are more likely to be sought after by the market.

Stocks that release significant good news are also the darlings of the market. Whether it is asset restructuring, delisting, huge investment projects, or sudden natural disasters, they can have a direct stimulating effect on stock prices. These news often trigger a warm response from the market, and stock prices often realize the good news by rising by the daily limit or opening sharply higher.

Individual stocks that have been suspended for various reasons often become the focus of the market after they resume trading. If the market index rises sharply during the suspension period, these individual stocks will often see a rebound after the resumption of trading. They are like beasts ready to go, and once the suspension is lifted, they will hit the market with a trend of opening high and going high, or even hitting the daily limit.

Finally, stocks that are facing previous highs should not be ignored. They are like athletes standing at the starting point of a high jump. Once they break through the previous constraints, they are expected to start a new upward trend. These stocks often attract a large amount of follow-up funds and short-term funds, becoming popular stocks in the market.

In the stock market, the occurrence of daily limit is often closely related to a variety of factors. Whether it is the launch of a high dividend and bonus plan, the refresh of a historical high, the release of major good news, or the rebound after the resumption of trading and the challenge of the previous high point, these factors can provide a strong impetus for the surge in stock prices.

For investors, grasping these key points can often help them capture market opportunities and achieve investment success.

When the stock price gradually approaches the previous price high, especially when the price gap narrows to within 10% of the previous high, the possibility of a daily limit breakthrough increases significantly. The root cause of this phenomenon lies in the changes in market psychology and the strategic considerations of the main funds.

As the stock price continues to rise, investors who bought near the high point and were trapped begin to get out of the trap. Some of these investors will choose to sell at this time to lock in profits or avoid further risks;

Others believed that the stock price still had room to rise and chose to continue holding. In this series of transactions, the supply and demand relationship in the market began to change.

When the stock price gradually approaches the previous high point, the main funds often choose to conduct a test operation. This is to test the size of the upper selling pressure and the market's acceptance of higher prices. Through this series of tests, the main force can better grasp the pulse of the market and prepare for subsequent breakthroughs.

Once the test is successful, the main funds will usually break through the previous high point by the way of daily limit. This strong breakthrough not only shows the determination of the main force to do more, but also sends a clear signal to the market: the stock price still has room to rise further. In the case of a positive overall market atmosphere, the probability of such stocks effectively breaking through the previous high point is often higher.

The same logic applies to stocks that are facing all-time highs. These stocks are often facing significant psychological tests and market pressures near their all-time highs.

Once the stock price can effectively break through this historical high point in the form of a daily limit, its significance will be even more far-reaching. This not only shows that the main funds are strongly optimistic about the stock price, but also indicates that the stock price may open a new upward channel.

The chip concentration area is another focus worthy of attention. This area often gathers a large number of buying and selling transactions, so its support or pressure on the stock price is very obvious.

When the stock price effectively breaks through the chip concentration area, this area will often change from a pressure level to a support level; conversely, if the stock price falls below this area, this area will change to a pressure level.

In actual operation, the "chip distribution" function of the stock market analysis software can be used to accurately identify these chip-dense areas, so as to better grasp the stock price trend.

Sometimes, the main funds will conduct a "dig pit" operation near the chip concentration area, that is, deliberately let the stock price fall below this area in order to create panic and wash out unsteady investors.

This kind of decline is often short-lived. After a few days of shrinking volume, the stock price often rises to the limit again. For investors who can identify and intervene in such stocks in time, they can usually get good short-term returns.

We should pay special attention to those stocks that have effectively broken through the concentrated chip area but then retreated with reduced volume. This kind of retreat is often a confirmation and consolidation of the previous breakthrough. Once the stock price stabilizes again and breaks upward, it often means that a new upward trend is about to begin.

Timely capturing the opportunity to intervene in such individual stocks is of great significance to improving investment returns.

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