0 1 Bai Mao Xue Tang
____ The story of the strong stock, the strong always remain strong.
More than a decade of stock market combat experience has taught me that buying stocks is about choosing strong stocks, that is, leading individual stocks.
Especially when the market is rising, the increase of strong stocks often exceeds the index by several times.
The index may have a very small rise, not exceeding 10%, while the strong stock has already doubled, with an increase of more than 100%, or even 200-300%.
If you catch the big hot leading stock, it is also very normal to have an increase of 300-500%.
You should not expect the strong stock to eat from beginning to end, as long as you can seize the opportunity to get on the car, and achieve a profit starting from 50% in 5-10 trading days, it is a high probability.
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Today, I will talk about strong stocks from three aspects.
They are the search for strong stocks, the buying and selling points of strong stocks, and the risk control of strong stocks.
The first one determines whether you make money or not, the second one determines how much money you make, and the third one determines how much risk loss you have when you make money.Only by effectively combining these three elements can a comprehensive trading strategy model be established.
0 2 Bai Mao Xue Tang
____ Discovering and choosing the fertile soil.
When it comes to finding strong stocks, many people will mention the term "hitting the board."
If we speak crudely about hitting the board, or looking for it on the limit-up board, it's not wrong.
But with so many stocks hitting the limit-up every day, which one is more strong, and which one can continue to be strong?
You can't just say that the stocks that have risen by 3 limit-ups, 5 limit-ups are strong stocks.
Those that have doubled, tripled, or quintupled are obviously strong stocks, and everyone knows that, which has no value.
Because the purpose of our judgment of strong stocks is to find the opportunity to get on board, rather than just finding a result of a strong stock.To successfully identify and capture the moment when a strong stock first shows its teeth, one must act immediately.
The search for strong stocks is also a top-down approach.
The so-called top-down approach involves using certain phenomena to filter through layers quickly, in order to find strong stocks that are more likely to become super dark horses.
Strong stocks are also divided into several types.
The first type is the super major hot spot.
A super major hot spot actually refers to the direction of market mainline speculation.
There are many strong stocks in a major hot spot, or the entire sector consists of strong stocks.
Among them, smaller-cap stocks will have 1-2 that are speculated to become leaders, with particularly large increases.
Super major hot spots are often a combination of policy guidance and capital speculation, and are also the biggest breeding ground for strong stocks.
The entire sector will be far stronger than the entire market, and the opportunities for individual stocks within the sector will also be far more than other stocks in the entire market.Understand the movements of the plates, and judge the major hotspots through policy and performance expectations, as well as the imagination space.
Then, when a major hotspot starts, choose the stock with the largest increase, which is a top-down approach.
The sustainability of major hotspots is very strong, generally looking at 3 trading days. If the entire plate continues to increase in volume and rise, it is basically correct.
The second kind is the super big demon stock.
The demon stock has a certain difference from the hotspot.
The demon stock is a super strong stock that comes out of the drum and flower, like a wild horse that has broken free.
The speculation of the demon stock actually does not need any logic, it is a superposition of funds.
In the first few limit rises, everyone is looking for the reasons for the rise, and there is no reason later, it is a pure speculation.
The grasp of the demon stock is much more difficult than the strong stock of the hotspot.
Because the demon stock is speculated out, not judged out, the demon stock itself may not conform to the policy expectations, it is just the behavior of the funds.The characteristics of a "demon stock" are constant price limit-ups; once it stops hitting the limit-up, the market is at risk. If it fails to hit the limit-up for 2-3 days, it's completely over.
Another feature of a demon stock is that it is more likely to be nurtured in a volatile market. Because the market lacks direction, and capital wants to make money, it's easy to set up a scheme and hype a demon stock.
Since a demon stock is like a game of hot potato, the risk in the later stages also increases. Don't be the one holding the last stick, still clutching it tightly in your hand.
The third type is the "super major shareholder."
Super major shareholders, who nurture strong stocks, will continue for a long cycle. The so-called super major shareholder does not necessarily refer to how much capital the shareholder has, but rather to a very high control rate of the stock.
The difficulty in grasping this type of stock is not actually high, but there are two points to note.
First, you need to have patience. You will find that stocks with high control are mostly rising slowly, and are not easy to be continuously pulled up.When it comes to the stage of volume expansion and price lifting, it is often the time when the market manipulator is planning to leave the market, attracting public attention to prepare for the "slaughtering of the pig."
Secondly, there must be risk prevention measures.
Super large market manipulators are very cautious when the market is rising, and they are very efficient when they are selling out.
Because it must trap retail investors, not allowing them to leave the market, in order to smoothly withdraw itself.
So, never buy in the middle and late stages, the risk is actually getting bigger and bigger.
Although the stock manipulated by the market manipulator has at least doubled, or even two or three times, but after a rise of more than 50%, investors participating in it should also be cautious.
The backlash of the stock manipulated by the market manipulator is very large, and it is not easy to dance with the market manipulator.
0 3 Bai Mao Xue Tang
____ Sowing and harvesting, the cycle of the seasons.The buying and selling points of strong stocks, especially the selling points, are the key to how much money can be made from strong stocks.
The buying points of strong stocks are not actually complicated, there are just two ways.
First, buy on the rise at the start.
Buying on the rise is not wrong, strong stocks need to be bought on the rise, especially at the start.
Buying on the rise of strong stocks is very important, otherwise, the cost of getting on board every day will be higher.
Strong stocks do not often have the situation of reversing to pick up people, especially in the first rising stage, almost every day is a new high.
So, if you judge it to be a strong stock and it has just started for a few days, you should chase it when you should, don't hesitate.
Second, absorb at a low point during the adjustment.
Absorbing at a low point refers to the strong stock being at a high position, and there has been a violent shock.
The essence of absorbing at a low point is to be optimistic about the sustainability of the rise of strong stocks, and to enter the market during the period of rest.The strong stocks in the head, the so-called buying on dips may be during the intraday fluctuations.
There is a part that, due to the adjustment of the sector, will have some fluctuations and washing in the middle waist, and then start the second round of the market.
That is, if you are optimistic about the sustainability of strong stocks, you can take advantage of the fluctuations in the middle stage and get on board at a low price.
The buying points of strong stocks are actually just these two, while the selling points are all kinds of different.
Those who know how to buy are apprentices, and those who know how to sell are the masters.
There is no method for the selling points of strong stocks, only a few different principles.
Principle 1: Target profit taking and exit.
The simplest and most foolproof way is to set the target, and take it when there is money to be made.
For strong stocks, the target will definitely not be too low. Generally, the short-term is starting at 10%, and the medium-term is above 20%-30%.
For those who are a bit greedy, 50%-100% is not impossible.The main factors to consider are the entry point and the holding period to determine the target position for taking profits.
Taking profits and exiting is, in theory, a way to sell a step ahead of the main force and earn the bonus of a ride.
Principle 2: Gradually exit and secure profits.
Gradually exiting is another more prudent approach.
No one knows how much a strong stock can rise, and those 10-fold stocks, or even future 30-fold or 50-fold stocks, are also strong stocks.
Looking at the long term, everything is possible.
So, when there is no clear expectation in the mind, choosing to gradually exit may not be a bad method.
Principle 3: Determine the top selling point.
The last one is what the technical stream most wants to do, and also what ordinary investors most want to do.
This is too difficult, which is to determine the top.
(Note: The last sentence seems to be incomplete or may need some context to fully understand the intended meaning.)The top is not determined, but actually it is also walked out.
The confirmation of the top K-line pattern requires a certain amount of time, and it is definitely not something that can be achieved overnight.
The top pattern is also diverse, remember the basic high-volume bearish lines at high positions, and the continuous pregnant lines at high positions.
Focus on the big picture and let go of the small details, don't pay too much attention to the accuracy of the top, it is better to miss the sell-off than to be trapped at a high position.
Investment circle, there is no guarantee of steady income, occasionally there are natural disasters and man-made disasters.
Risk control for strong stocks is also very important.
The risk of buying strong stocks is definitely less than the return on investment, because the stock market is always strong.
But this does not mean that strong stocks have no risk, buying will definitely rise, and it is a sure hit.Strong Stock Risk Control: Remember the following key points.
1. Hold on in a bull market, and follow less in a bear market.
In a bull market, when dealing with strong stocks, the key is to hold on, as the risk comes from too high a trading frequency.
In contrast, in a bear market, the strong stocks often lack sustainability.
Therefore, when you find a strong stock in a bear market, especially in the middle and later stages, reduce the entry, and prefer to miss out.
Chasing gains and cutting losses in a bear market will end in a miserable outcome.
2. If you make a wrong judgment, stop loss in time, and never turn short-term into long-term.
If you make a wrong judgment, thinking it's going to rise but it falls, please stop loss in time.
Don't think you made the right judgment just because some stocks fall and then rise.
Especially when you are trapped, never have the idea of turning short-term into long-term.Even if it turns out that extending the time period can still make money, this does not align with the fundamental model of strong stock trading.
That is to say, you have made a wrong judgment, but you have made some money by luck, and you think your approach is correct.
In this case, it will affect your risk control judgment. If you happen to buy a stock that has been falling all the way, it will cause serious losses.
3. Do not easily believe in "washing the plate", treat it as selling out.
The decline of strong stocks will be attributed to "washing the plate" for the most part.
But the difference between "washing the plate" and selling out is actually not very big, especially in the short-term pattern.
Judging "washing the plate" can easily lead to a subjective bullish view, and the result is a loss caused by a continuous decline.
As the saying goes, risk control is to avoid major losses. You think it's "washing the plate", but in the end, you are washed in.
Once strong stocks complete the selling out and enter the downtrend, it is bottomless.
4. Protect the principal, and moderately diversify positions.Engage in strong stocks, but never bet on just one or two of them; diversify your positions appropriately.
Diversifying positions may lead to average returns, but risk control will become much easier.
70-80% of strong stocks can still achieve the principle of the strong always being strong.
Therefore, choosing 2-3 strong stocks, preferably from different sectors, can effectively diversify risks while not significantly affecting returns.
Protecting your principal is always the first priority in investing.
Investing in strong stocks may seem simple, but in reality, there are many "unwritten rules". As an investor, it requires a certain accumulation of experience to better grasp the opportunities.