0 Bai Mao Xue Tang
____ Investment, a game of going with the flow.
Investment is all about going with the flow.
But what exactly is the flow?
Hotspots are essentially the flow in the stock market.
Going with the flow means always following the hotspots in the market.
Even the best stocks, during their rapid rise, are definitely the market's hotspots.
And the essence of a hotspot is the speculation of capital, which is to follow the direction of capital to make the market trend.
Therefore, understanding the capital in the market, that is, volume and turnover rate, is the key to capturing the hotspots.0 2 Bai Mao Xue Tang
____ Hotspot, the battle of breaking through the encirclement under siege from all sides.
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Hotspots are chosen by the market.
Hotspots are not predicted at all, but are created by market speculation.
If funds could predict hotspots in advance, then hotspots would no longer be hotspots.
The so-called hotspot is something that is not hot enough, and then suddenly becomes hot.
Looking at the phenomenon of hotspots, there are many companies with daily limit rises in the sector, and funds are constantly entering and exiting this sector.
The more market participants there are, the more explosive the hotspot becomes.
Therefore, the essence of a hotspot is a sudden outbreak, followed by a large amount of funds participating.
Hotspots have unpredictability and are not planned, and can only be discovered after the hotspot erupts.In other words, the choices provided by the market must be respected.
Hot spots are built up by capital.
The essence of hot spots is actually capital, and everything else is just a superficial phenomenon.
Only the investment of real money can create a real hot spot.
It can be said that the amount of capital directly determines the sustainability of the hot spot.
Only when capital continues to enter, will the hot spot sector continue to be speculated, and the hot spot can be called a hot spot.
Once the capital is interrupted, the hot spot will encounter a cold, and then slowly go lower and lower.
Hot spots are sectors that still have a lot of capital willing to buy low when there is an adjustment.
Until the capital that leaves is greater than the capital that enters, and is unwilling to return to the market for speculation, the entire hot spot market ends.
Hot spots are burst from the top down.The so-called top-down approach refers to starting from the policy level, moving to the financial level, and then to the market's degree of cooperation.
Although major hot spots may seem to emerge suddenly, they are actually gradually evolved.
Just like speculative stocks, they are ultimately created through hype, and the results are only known afterwards.
A hot spot is a point, but behind it is actually a large policy and a significant financial layout.
Popular stocks also start by selecting industry sectors, and ultimately focus on the individual stocks that benefit.
In fact, the principles of all these are interconnected, and the overall logic is the same.
Hot spots are in line with favorable geographical conditions and human harmony.
Why only geographical conditions and human harmony are mentioned, is because the timing is determined by the cycle.
Geographical conditions are guided by policies, and human harmony is the atmosphere of financial speculation.
In searching for hot spots, it is difficult for us to accurately control the cycle, and many hot spots are sudden.But we can understand whether the policy supports it or not, and whether the funds cooperate or not.
When policies and funds are in sync, hot spots tend to go further and last longer.
If the policy does not take a stand, funds will hesitate, and there will be more situations where the market is just being speculated.
Major hot spots must conform to the advantages of the location and the people, and then wait for the opportunity given by the right timing.
0 3 Bai Mao Xue Tang
____ Grasping hot spots, the song of ice and fire.
Having understood the essence of hot spots, let's talk about how to grasp hot spots.
There are three steps to grasping hot spots.
1. Look for the hot spot sectors.The first step in engaging with hot topics is undoubtedly to find the hot topics.
How to find hot topics, is it by flipping through the limit-up boards, or by flipping through the capital list, or how to find them?
The standard way to find hot topics is through the increase in the sector's price and volume, and then to correspond to the proportion of the number of limit-up stocks.
There are three key points here.
First, there must be a certain increase.
If there is no increase in the hot topic, there must be a problem, and it is not called a hot topic.
It doesn't have to be a sudden surge, but the entire hot topic sector should at least have a 2-3% increase.
Otherwise, it can't be considered as a start.
Second, the trading volume must be significantly increased.
Since it is the entry of capital, the most obvious is actually the trading volume to increase, and it is significantly increased.The volume ratio of the plate should start at least 1.5 times, and it may reach 2-3 times.
If it is a major hot spot, the trading volume may even reach 5 times as much.
Whether there is specific capital entering the market is the key to capturing hot spots.
Thirdly, the proportion of stocks hitting the daily limit should be high.
Finally, it is the profit effect of capital to determine whether the hot spot is established.
The purpose of capital speculating in hot spots is ultimately to make money.
The daily limit is a sign of the profit effect, and a large number of stocks hitting the daily limit represents a good profit effect in the plate.
Sometimes, the entire plate has a large size, but the increase is not much.
However, there are many individual stocks in the plate hitting the daily limit, which is actually a mainstream hot spot plate.
2. Judging the sustainability of hot spots.After identifying the hot spots, there is a very important step, which is to judge the sustainability.
Some hot spots are just a one-day trip.
Some hot spots have a certain degree of sustainability.
How to judge the sustainability mainly depends on three points.
First, the degree of fermentation of the hot spot.
The degree of fermentation of the hot spot refers to the possibility of further fermentation of the hot spot in the future period.
For example, if the hot spot is a war, how long will the war last.
For example, if the hot spot is policy stimulation, will the policy be further introduced.
For example, if the hot spot is technological upgrading, will there be further explosive points in the subsequent technology.
If the hot spot can continue to ferment, the overall speculation cycle will be much longer.Secondly, the degree of capital's herd mentality.
How much capital follows the trend, and whether the volume can be maintained at a high level.
Generally speaking, it is observed over three days; if the volume can be sustained, then it is a major hot spot.
Ephemeral hot spots usually resolve within three days, ending with a reduction in volume.
Capital inflow, capital outflow, and the remaining capital exits with the recognition of a mistake, all within three days.
Persistent hot spots can last from as short as seven days to as long as several months, and they belong to the main hot spot sectors.
Thirdly, the level of policy support.
Generally, hot spots without policy support are often not sustainable.
However, once policy support is given, the persistence is definitely very strong.
Policies are not formulated for short-term hot spots; they are beneficial in the medium to long term, and only then will there be policy support.Translate the following passage into English:
Without policy support for hot spots, the possibility of counter-growth is very low.
Without policy support for hot spots, once the price goes up, capital will retreat in fear of heights.
3. How to participate in hot spots.
Finally, it's time to participate in hot spots in a real and solid way.
Participation is not just about buying, but choosing what kind of strategy to enter with.
The core is, which stocks to buy in the hot spot sector?
The hot spots that have been determined have often passed the start-up stage, and the price has already been somewhat high.
The leader may have already had several limit-ups, and it's not daring to buy.
Non-leaders have risen less, seemingly safe, but relatively weak.
At this time, the main ideas still have two.Article Translation:
First rule, buy into the leaders when the market is low.
Participating in the leading stocks is sure to yield the best returns.
The leading stocks of major hot spots often have a range of 3-5 times.
If the increase is not significant, below 50%, it is actually still in the initial stage.
After the increase exceeds one time, it is necessary to plan during the period of fluctuation and adjustment, after all, the risk of chasing high is very large.
Second rule, look for individual stocks with high certainty of performance growth.
The higher the certainty of performance growth, the longer the association with hot spots will last, and the willingness of long-term capital to enter will be strong.
If it is a medium to long-term hot spot, which lasts for several months, there will be a performance release in the middle.
The performance leaders in this part will naturally have more opportunities.
Grasp the hot spots is the fastest way to accumulate investment capital, but it is necessary to be very sensitive to the hot spots.The hot spots also need to be prepared for a stop-loss to avoid stepping on the wrong hot spots or buying one-time hot spots.
Capturing hot spots requires "practice", it's not as simple as imagined, otherwise everyone would make money by catching hot spots.
First, watch more, learn more, understand the logic of catching hot spots, and then grasp the good investment opportunities through actual combat to achieve profits.