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MindMap Gallery Short-term strategies for stock leaders
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Short-term strategies for stock leaders
The leading short-term tactics of stocks, board-making skills, sector rules, how to review the market, methodology, Subject matter, section, information collection and analysis, Risk control, etc.
Edited at 2024-02-07 16:34:12
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Short-term strategies for stock leaders
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- Outline
Leading short-term tactics
methodology
Growth method
Study 30-50 classic bull stock cases
Pick out stocks that have increased by more than 50% within two weeks in the past five years and select 50 stocks from them
More than 50% of the stocks in the past five weeks have exceeded 100, and more than 100 billion short-term funds have been gambled in it every year. Even in a bear market, there are still a large number of stocks with huge short-term gains.
What were the biggest events related to the company before and after these bull stocks broke out?
95% of bull stocks are stimulated by news related to the company or the industry in which the company is located at the beginning of their launch, and the characteristics and types of this information are also regular.
What is the biggest change in the industry and sector in which this company operates?
99% of short-term bull stocks have no major changes in their fundamentals before the bullish trend, but there is an expectation that it will change.
What was the overall market environment like before and after the outbreak of these short-term bull stocks?
Do they have any iconic graphics in their technical form?
What are the size of their circulation plates and the characteristics of their industries?
More than 80% of short-term bull stocks have a market capitalization of less than 13 billion, and small market capitalization is always favored.
3-5 people who are experts in research and practice
Stock trading to support the family
A flash of light, 10,000 times in 3 years (10w to 1y)
Livermore experience
Mentality affects trading
Only after you overcome the influence of emotions on your decision-making can you achieve great results
Overall market environment and trends
The prerequisite for stock selection and buying is that the better the market environment, the higher the chance of success.
Building positions in batches
Only enter the market when the key point is broken
When choosing stocks, choose the leader.
No one can change the trend, they can only obey it
Deliberate training
Set goals for continuous improvement
Stay focused during training
timely feedback
Train outside your comfort zone
Dynamic stock selection ability, static stock selection ability, position control ability, mentality control ability, planning ability, review ability, market reading ability
theme
What is subject matter?
Events and facts that can lead to expected changes in resources, wealth, and power
Classification of themes
Performance expectations theme
New technologies, new inventions, new business models, restructuring assets into mergers and acquisitions, backdoor transactions, high performance growth or loss-turning, changes in major shareholders or management, product price increases, new events
price expectation theme
Shareholders' holding increase, fixed increase, sub-new shares, high transfer rights, banker follow-up, celebrity concept (such as Wang Yawei, Xu Xiang, Buffett)
policy themes
Such as the Western Development Strategy, the Beijing-Tianjin-Hebei Coordinated Development Strategy, the establishment of the Shanghai Free Trade Zone, the Belt and Road Initiative, Xiongan New Area, monetary policy (interest rate hikes, reserve requirement ratio cuts), industry policies (artificial intelligence, new energy, chips and semiconductors, elderly care ), system changes (registration system, Shanghai-Hong Kong Stock Connect, IPO New Deal)
Common hype themes
Technology
Unmanned driving, AR, precision medicine, gene sequencing, 5G, graphene, quantum communications, artificial intelligence, Industry 4.0, biopharmaceuticals
High transfer
time window
The annual report or interim report is announced, and some companies will also release it in advance.
Selection skills
It is best to choose the first company to announce high bonuses and transfers, as this will give you a time advantage. For example: Caixin Development was the first to announce its annual report on December 8, 2015, and was the first to announce the ex-rights date in the 2016 interim report.
Choose a stock with a high transfer ratio, active stock history, and a small market size
With multiple themes and scarcity
Secondary IPO
There is no lock-up plate, so it is relatively easy to pull up.
There is no pressure from major shareholders to reduce their holdings, and the chips are clean
The circulation is small, and only a small amount of funds is needed to activate the entire sector.
There is no main force when the board opens, and the turnover rate is extremely high.
plate
What is the leading sector?
leading stocks
He was the first to hit the daily limit, and after the daily limit, he could also drive stocks in the same sector to rise sharply or even hit the daily limit, and eventually became the stock with the largest increase.
Leading enterprise
The enterprise with the largest development scale, the most influence and the leading role in the development of the industry in the industry
Leading sector
In a period, there is one strongest sector, leading the rise of other sectors, and its rise and fall has a greater impact on the market and other sectors.
Sector strength
In the short term, if 3 stocks in the same sector have reached their daily limit, I define this sector as having a sector effect. If 6 stocks have reached their daily limit, the sector effect has reached medium intensity.
How to judge the strength of a sector?
There are many stocks with daily limit
There is no grabbing the lead
The internal results of the sector are closely related (other similar stocks rise quickly)
High opening rate the next day
Three major rules of the A-share market
The strong always stay strong
Select the strongest stocks in the strongest performing sectors
Only do strong stocks, monster stocks
Only stocks with obvious upward trends
Everything must be reversed
Don’t be overly pessimistic or overly optimistic
Risks and opportunities are interchangeable
energy transfer
Determine the leading sector
Know where the risks are faster
Strength always starts from the dragon's head, and weakness always starts from the dragon's tail.
Review
Benefits of review
Digging for bull stocks, 80% of bull stocks are discovered through review
Familiar with most active stocks in the market
New profit models are constantly discovered. The short-term profit model of the market is either formed naturally, formed by games, or created by some funds. These profit models cannot be learned from any books. We can only learn from the market through review.
Discover phased risks through review and comparison
Try not to make the same mistakes as much as possible, discover the weaknesses in your emotional patterns, and hone your character. Allow yourself to truly integrate knowledge and action.
How to review
Dimensions of the market
A review of the market atmosphere
The performance of individual stocks on the next day
Sector dimension, whether there is a sector effect formed
Extremely weak state
There is no sector effect, that is, there are no more than 3 stock price limits in the same sector. At this time, market participation is relatively low
Stronger state
There is a strong sector effect, and more than 6 stocks have daily limit. In this case, you can participate with caution.
Strong state
Multiple sectors have a sector limit effect
Individual stock dimensions
The recent performance of leading strong stocks is a benchmark for the market.
Subject matter, information, fundamentals, circulating market size, historical trends and stock nature, we will focus on the daily limit stocks and the top 20 stocks for decline.
Dragon and Tiger List
Focus on those top first-class hot money seats (within 10), follow them for a long time, and become familiar with their style
Improve yourself from the perspective of stock selection and the market atmosphere during trading
Compare the stocks you buy with first-class hot money every day to confirm your operations
risk control
Position management
Probability of winning (profit-loss ratio, odds)
Greater than 90%, attack with full position
80%-90%, position 75%
70%-80%, the position is less than 50%
60%-70%, position less than 25%
Less than 60%, short position waiting
How to determine the chance of winning?
For example: there are sector effects in 2 sectors, there are connected stocks, the profit-making effect of the daily limit is as high as 80%, and the market rise and fall ratio is higher than 9:1. At this time, it can be confirmed that the winning chance is greater than 90%.
Livermore's method of building positions in batches
Never increase your position until you make money on your first position
Specific short-term position management
Target
Prevent liquidation and bankruptcy
Prevent the drawdown from being too large. The drawdown should never exceed 10% of the principal.
Stable realization of compound interest
The position of leading stocks does not exceed 40%, and the positions are entered in two batches every other day. The position limit for other single stocks is 20%
If the market is strong and there is a strong sector effect, you can operate with a full position
The market is weak and there is a strong sector effect, so half position operation
In other cases, the position shall not exceed 20%
Checklist
Is the stock I want to buy a leading stock? Does it meet the definition of a leading stock?
Are there more than four stocks in the sector that have reached their daily limit?
Have stocks since Long 2 performed too weakly and suffered money losses?
Is the position too large or too small?
Did I plan to only buy at the second daily limit?
If I can't buy the leader, am I prepared to give up the transaction that day?
If the daily limit cannot be sealed on the day of purchase, am I prepared to exit the market the next day?
Am I mentally prepared to lose money on this investment? Even if I lose money, can I accept it calmly without any fear or fear of losing money?
How to handle losses correctly?
No one can be right every time, and no one can guarantee 100% accuracy even in judging a single market trend.
Loss is part of trading and an integral part of it
The market does not change according to our own wishes, but our operations will lead to disasters because we are afraid of losing and do not want to lose.
Information collection and analysis
collect information
Disk information
Individual stocks with daily limit, dragon and tiger list information, sector rise and fall information, money-making effect, trading volume, etc.
company information
Prospectus, annual report, major restructuring matters, high-end transfer information, securities firm research reports
Industry Information
Price increases, industry development plans, major events that are beneficial or detrimental to industry development
Macroeconomic policies and major institutional information
Monetary policy (interest rate cuts, interest rate increases), institutional changes, major economic development plans, important meeting resolutions (two sessions, Central Economic Work Conference)
major events
Major international and domestic emergencies
Analyze information
From the latitude of the subject matter
Can it trigger expectations of hype for a theme?
From the perspective of market
Does the market currently recognize this kind of information, and is it relevant to mainstream sectors?
From the perspective of individual stocks and industries
Whether individual stocks are active (as long as there is news to stimulate them, they can rise to the limit), and the industry is the same.
Evaluate from the perspective of market expectations
If something good happens, treat it with caution. Before the good news comes out, are there any big bull stocks in the market? For example, if you have pulled 4 consecutive pulls, is it already at a high position? If so, the benefits are realized. On the contrary, strength at a low level is worthy of attention.
Deliberate training
Techniques: To be bullish, don’t be strong but go against the weak, stop! It's negative, don't be weak but be strong, attack!
Information appears, self-question and answer training method to find the logical chain
Which countries, industries, and companies will this information affect? Is it an opportunity or a risk?
What will the rest of the market think?
Has the price been reflected?
Select the 10 most important pieces of information every day, and then deduce and predict this information based on the above question model.
After closing, summarize based on market reaction
Leading tactics
Admission operation process
Step 1: Wait for the plate effect to occur
Step 2: Based on the principle of analyzing hot topics, finding out the corresponding sections of mainstream topics
Step 3: Determine how long the hot sector has been in operation and whether the best entry opportunity has been missed.
Step 4: Lock in the leader and be the first to hit the daily limit
Step 5: Make a plan and confirm it intraday
Appearance skills
Good things come true
Following the trend is weak and the market is weak
Short-term increase exceeds convention
There are new sections or themes that have become the new mainstream
Exchange suppression (policy suppression is very useful in a bear market)
Performance is weaker than expected, should it be strong or not?
You can enter the market based on the 5-day moving average
Risk prevention
chasing high
Continuous disruption of sector effects
Failure to exit the market in time resulted in excessive profit taking
Pay attention to small themes and old themes
Quickly master the leading strategy?
Study classic cases
Review the data of the past three years
Pyramid mode and inverted pyramid mode
inverted pyramid pattern
three phases
The first stage: A stock has risen sharply, but the sector in which the stock is located has not followed the trend as a whole.
The second stage: The stock rises by a large margin. The media reports on the subject and hot sectors. Short-term speculators begin to chase the rise. Hot sectors emerge and gradually heat up.
The third stage: Every investor knows about this hot spot and begins to actively chase the rise. Individual stocks in the sector rise to the sky.
Operationally
When choosing stocks, try to buy soul stocks or stocks with the strongest linkage with them.
If you are chasing the daily limit, the time of intervention must be to avoid the dangerous time when individual stocks in the sector start to fully launch and the large-scale daily limit is reached.
Once the most unpopular stocks in the sector also start to rise across the board, a cycle is completed within the sector and the tide begins to ebb. Therefore, if you want to buy non-leading stocks at low prices, it is best to choose before the sector breaks out collectively.
Pyramid pattern
cause
When major news is announced, almost everyone in the market receives the news at the same time, has a high degree of recognition and has relatively consistent expectations.
Manifestations
From the beginning, the entire sector collectively reached its daily limit (more than 3 stocks)
Judgment leader
Judgment based on daily limit time, order volume, and popularity
Time to leave the market
The rising trend of leading stocks slows down, and another stock appears that has a higher increase and closing speed than the leading stock (changing the leading stock)
stock game
cause
There is no news or it is stock information. After the market falls, the sectors rotate, causing a certain sector to strengthen and the leader to close the market.
What happened
It mostly occurs in the second wave or long-term sectors of mainstream sectors.
Announce tactics
What information needs to be disclosed is stipulated in the "Measures for the Administration of Information Disclosure of Listed Companies"
Prospectus, prospectus, listing announcement
Periodic reports, such as: annual report, interim report, quarterly report
Interim reports: For major events that may have a greater impact on the trading prices of listed companies' securities and their derivatives, listed companies should immediately disclose the cause, current status and possible impact of the events.
Announcements that are prone to bull stocks
Those with small stocks, active stocks, and those who have acted as leaders or stage monster stocks before.
Performance forecast
Major mergers and acquisitions
High scarcity gift transfer plan: send more, send early, fill in the right, etc.
New products, new strategies, and new initiatives that have a significant impact on the company
Company announcements related to current hot topics
Change management or major shareholders
Dilemma reversal, hats off
Announce the entry of tactics
Entering the market at daily limit is relatively risky (at least two of the following conditions must be met)
The market atmosphere is good, and there are more rising stocks than falling stocks (the market is in an upward channel)
More than 70% of the stocks that hit the daily limit in the market the day before were in the red market
There was a sector attack phenomenon yesterday and today, that is, more than three stocks in a sector have reached their daily limit.
There are more than 2 stocks with continuous daily limit
Enter the market at the highest price on the heavy volume day, which is safer
Method: After the announcement, there is heavy volume (the heavy volume should be twice the average volume of the last 5 days), and there is no daily limit on the day. Then the price breaks through the highest price on the heavy volume day, and you enter the market.
When the announcement came out, because the overall market environment was not good, or because the differences were too large, the volume was increased but there was no daily limit. After a period of time, the closing price reached the highest price on the heavy volume day. This is when our key point has been broken through, and it’s time to enter the market.
Precautions
Stock selection must be based on announcements. If there is an announcement that the price limit is going to rise, buy it without analyzing it before. The risk is relatively high. Must analyze
After a good announcement comes out, a word board will appear. Don’t stop reading just because you can’t buy it. Pay attention to opportunities caused by wrong kills or unexpected surprises.
Practical skills
Three principles of market reading
Understand the overall situation
Spatially: Not only focus on your own stocks, but also focus on the overall atmosphere and sectors of the market, such as the leading sector, the leading sector, the number of rising and falling stocks, etc.
In terms of time: Not only should we look at the changes in the current market, but we should also compare it with the market data of the past three days. More importantly, we should deduce the evolution path of the market in the next day.
Watch the linkage
Stocks will interact with each other. The rise and fall of one stock will affect the rise and fall of another stock or stocks. Similarly, there will be linkage or seesaw between sectors and sectors, and between themes and themes.
Focus on the key points
Mainstream sectors and sustainability
Leading stocks in each sector, large-cap stocks that support the market, and even-selling monster stocks
Changes in the money-making effect and the money-losing effect
Three major preparations for reading the market
Develop a trading plan
Should include positions, alternative stocks, entry conditions, exit conditions, etc.
Sand table deduction to discover opportunities and prevent risks
Prevent loopholes and risks in trading plans to maintain peace of mind and better execute trading plans
Adjustment, settings and other preparations for reading the market interface
Put the stocks that hit the daily limit the day before into the optional section
Put today's active sections into custom sections
On the day, you need to focus on the stocks you may buy and put them into the stock pool.
Put the leading stocks of each period into a custom section
Six tips for reading the market
See collective bidding
1. Look at yesterday’s mainstream sectors, 2. today’s opening, 3. whether it is possible to continue to be strong, 4. whether the opening exceeds expectations, 5. whether there is a leader that can be attacked
Look at the higher openings of individual stocks that hit their daily limit yesterday
How much better or worse is the data compared to yesterday? This is one of the conditions that determines whether I should take action in the early trading.
Be bullish on stocks at the top of the market
What is the reason for analysis? Is there any ticket I can make?
Look at whether stocks that have fallen more than 5% have decreased or increased compared to the previous day.
The main thing is whether the money-losing effect has been reduced.
Training methods to quickly improve your ability to read the tape
Is the market atmosphere suitable for trading?
What is the overall profit-making effect of yesterday's daily limit stocks?
How is the sustainability of yesterday's strongest sector today?
Have the execution conditions in the trading plan been met?
Are there any new plate effects?
Do I have thoughts of fear, greed, fantasy, paranoia, etc. in my heart?
Is the current daily limit of stocks higher or lower than yesterday?
Are the trends of leading stocks and benchmark stocks in line with expectations?
How is the performance of individual stocks on the board?
How to confirm intraday
Market/sector atmosphere
The money-making effect of playing boards
rise/fall ratio
Number of connected stocks
Sector Strength Sustainability
How many related stocks will be driven upward?
Are there any stocks that opened sharply lower among the stocks that hit the daily limit on the previous day? If so, you should be cautious.
Are there any sectoral effects on new themes?
Cannot be stronger than the original sector
If it is not stronger than the original sector, you can hit the market and chase the rise.
Pay attention to the Five-Year Plan, the Two Sessions, and the Central Economic Conference. Policies promoted by the top leader are prioritized first, followed by the State Council, and then ministries. Only focus on big policies and focus on top management