The legendary woman who was reborn from the ashes

Chapter 154 How to Trade the First Daily Limit at the Bottom

As the stock price adjusts, after entering the bottom area, due to severe oversold, it will also appear with a daily limit, announcing that the bottom has been established.

However, the trend on the day after the daily limit varies greatly, which mainly depends on the specific circumstances of individual stocks and the intentions of the main funds.

For individual stocks that are falling unilaterally, due to the large number of trapped shares, once the daily limit is reached, the trend of opening high and closing low or even opening low and closing low will often appear the next day.

For individual stocks that the main force intends to build a position in, the bottom limit is usually the process of their strong collection of chips, so the next day they will often directly jump up and open high or go sideways before rising.

Regardless of whether it is an oversold rebound or a stock that is strongly pulled up by the main force, the probability that the stock that has hit the daily limit with a reduced volume will continue to rise sharply the next day is usually much greater.

This is because the limit-up with reduced volume indicates that the chips are well locked, the main funds have strong control over the market, and the market has a high degree of recognition for the stock, and there is enthusiastic follow-up trading.

In order to increase the success rate of hitting the daily limit, investors can pay close attention to the key indicator of trading volume. As long as the daily trading volume does not increase by more than twice the 5-day average, then you can consider chasing the daily limit.

During the operation, we should pay attention to the quality and sustainability of the daily limit. The first daily limit at the bottom is often of symbolic significance, which may indicate that the stock price is about to start a wave of rising prices.

We need to carefully observe the shape and volume changes of the daily limit to determine whether it is sustainable. If the daily limit is accompanied by a significant increase in volume and the stock price can stabilize after the daily limit, then such a daily limit has a higher credibility.

Secondly, we need to analyze the fundamentals and technical aspects of individual stocks. The fundamentals include the company's performance, industry position, market prospects and other factors, which determine the long-term trend of individual stocks. The technical aspects include the trend of stock prices, moving average system, technical indicators, etc. These factors can help us judge the short-term trend of individual stocks.

Also pay attention to risk control. Although hitting the daily limit may bring higher returns, it is also accompanied by higher risks. When chasing the daily limit, you must set a stop loss point. Once the stock price falls below the stop loss point, you must stop the loss decisively to avoid further losses. At the same time, you must also maintain a calm mindset and not be affected by market fluctuations and blindly chase ups and downs.

In actual operation, other technical indicators and strategies can also be combined to improve the success rate of hitting the limit. Pay attention to the intraday chart trend of the daily limit, and observe the fluctuation of the stock price before and after the daily limit to judge the intention of the main force and market sentiment.

The first daily limit at the bottom - chasing with shrinking volume is an effective investment strategy, but it also requires analysis and judgment based on a variety of factors. You can also select individual stocks based on the trend of the market and the rotation of sectors to increase the success rate of investment.

In addition to the strategies and methods mentioned above, there are some details that deserve our attention. For example, we need to pay attention to the time when the daily limit appears.

Generally speaking, if the daily limit appears during the rise of the market or the rotation of sectors, its sustainability may be stronger, because at this time market funds may pay more attention to these stocks, thereby driving their stock prices to continue to rise.

If a stock can continue to maintain its strength after reaching the daily limit, such as a continuous daily limit or a sharp rise, then this means that the main capital has a strong control over the stock and the market has a high degree of recognition of the stock. Such stocks often have a large room for growth and deserve our special attention.

Investors should also note that not all stocks that have reached their daily limit with reduced volume will continue to rise sharply. Some stocks may experience a correction or volatile trend due to reasons such as the main funds selling out or changes in market sentiment.

Investors must be cautious when chasing the daily limit and not blindly chase high prices. If a stock shows an obvious pullback or oscillating trend after the daily limit, then we should consider stopping losses or reducing positions in time to avoid further losses.

Investment is a long-term process. We must constantly learn and summarize experience and lessons to improve our investment level and ability. While pursuing returns, we must also pay attention to risk control, maintain a calm mind and rational thinking, move forward steadily in the stock market, and achieve long-term wealth appreciation.

When investors consider chasing the daily limit, they should also pay attention to the overall market environment. If the market as a whole is in a bull market atmosphere, then the daily limit of individual stocks may be more easily recognized and supported by the market, thereby driving the stock price to rise further.

On the contrary, if the market is in a bear market or a volatile market, the daily limit of individual stocks may only be a short-term rebound, and it is difficult to form a sustained upward trend. Therefore, before chasing the daily limit, we need to have a clear judgment on the overall trend and sentiment of the market.

Investors also need to pay attention to the size of the circulating market of individual stocks. Generally speaking, stocks with smaller circulating markets are more likely to attract attention and speculation from funds, and their probability of hitting the daily limit may be higher.

However, it should also be noted that stocks with too small a circulating market may have greater volatility. Once the main funds withdraw, the stock price may fall sharply. When choosing stocks to chase the daily limit, investors should comprehensively consider multiple factors such as the size of the circulating market, fundamentals, and market sentiment.

We should also pay attention to the intraday chart trend on the day of the daily limit. By observing the intraday chart, we can more intuitively understand the fluctuation of the stock price before and after the daily limit, as well as the trend of the main funds.

If an individual stock shows a significant upward trend before the daily limit and can maintain a high turnover rate after the daily limit, then this may mean that the main funds are actively accumulating shares and the stock price is expected to continue to rise in the future.

Investors should also be aware that chasing the daily limit is not an absolutely reliable investment strategy. In actual operation, decisions should be made based on the actual market conditions and one's own risk tolerance.

If you find that the overall market environment does not support the operation of chasing the daily limit, or the fundamentals of individual stocks are not ideal, you should decisively give up the idea of ​​chasing the daily limit and look for other more stable investment opportunities.

The first daily limit at the bottom - chasing only when the volume shrinks is an effective investment strategy, but it also requires comprehensive analysis and judgment based on multiple factors.

When further exploring the investment strategy of bottom-shrinking limit-up, we should pay attention to some specific market signals and transaction details. We should pay close attention to the turnover rate after the limit-up. The turnover rate can reflect the market's attention to the stock and the activeness of funds.

If the turnover rate continues to remain high after the daily limit, it may mean that more funds are actively involved in the stock, thereby driving the stock price to continue to rise.

Secondly, we should pay attention to the changes in trading volume after the daily limit. Trading volume is an important indicator of market activity and capital flow. If the trading volume can continue to increase after the daily limit, it may mean that more funds are pouring into the stock, providing momentum for the stock price to rise.

If the trading volume shrinks significantly after the daily limit, it may mean that the market's willingness to follow suit is insufficient and the stock price's upward momentum may weaken.

Stocks that have reached their daily limit with shrinking volume at the bottom generally have obvious technical characteristics, such as breaking through important pressure levels, forming a strong upward channel, etc. At the same time, the moving average system also shows a bullish arrangement, indicating a long-term upward trend in stock prices.

Changes in these technical patterns and moving average systems can provide us with important reference bases and help us better grasp investment opportunities in individual stocks.

When the overall market trend is upward, stocks with shrinking volume and daily limit are more likely to attract market attention and popularity, thus driving up stock prices. At the same time, we should also pay attention to the rotation of sectors and choose those that are in hot sectors or have potential for growth for investment.

In actual operation, it is necessary to formulate a suitable investment strategy based on personal risk tolerance and investment goals. For investors with higher risk tolerance, they can appropriately increase the proportion of chasing daily limit, pay attention to stocks that break through the bottom with large volume, or choose investment products with stable returns.

The first daily limit at the bottom - chasing only when the volume is reduced is an effective investment strategy, which requires comprehensive analysis and judgment based on multiple factors. In actual operation, we need to pay close attention to market signals and transaction details.

It is inevitable to encounter various challenges and difficulties during the investment process. In the face of market fluctuations and uncertainties, we must maintain a calm mind and rational thinking. Do not be affected by short-term market fluctuations, and do not blindly pursue short-term gains. Instead, we should focus on long-term investment value and development potential, and adhere to the concept and method of value investment.

The market environment and sector rotation will continue to change. We need to pay attention to the dynamic changes of the market in a timely manner and adjust our investment strategies and position structures. When new investment opportunities are discovered, we must act decisively; when faced with risks, we must also stop losses or reduce positions in a timely manner.

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