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    Rising Stock Buying Tactics.

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    busness.ipsit
    Stock buying tactics

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    Rising Stock Buying Tactics.

    Uploaded by

    busness.ipsit
    2 views2 pages
    Stock buying tactics

    Original Title

    Rising stock buying tactics. (5)

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    Stock buying tactics

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    2 views2 pages

    Rising Stock Buying Tactics.

    Uploaded by

    busness.ipsit
    Stock buying tactics

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Selection of Stocks:

    Every day, there are over a hundred stocks on the early bidding board, and sometimes even a
    dozen. Therefore, the first step in stock selection becomes particularly crucial.

    The selection criteria for choosing stocks in the evening:

    Fundamentals:

    1. Choose stocks with a small float, ideally around or below 6 billion.


    2. Select stocks with prices ideally below 20 yuan. Many potential stocks have experienced
    significant surges starting from single-digit prices.
    3. Focus on current hot topics, such as recent flourishing sectors like energy storage and
    automobiles.
    4. Prefer stocks that have experienced a daily trading limit within the last 20 days, indicating
    significant movements by major investors.
    5. Exclude stocks that are locked in the first trading phase ('one-line board').

    6. Prioritize stocks with high recognition. Recognition can be somewhat vague, but regular
    market observation can help develop this instinctual sense. While this factor isn't exceptionally
    crucial, it contributes to a good understanding of market sentiment.

    Technical Aspects:

    1. Look for breakout opportunities in trading range, where the first trading phase has broken
    out of the range. In such cases, the likelihood of the second phase upgrading increases. (Note:
    Do not engage in the second phase below the annual line; prioritize breakout opportunities in
    highly concentrated trading ranges.)

    Early Morning Bidding Conditions:

    1. Observe the time of the previous day's trading limit. If it occurred before 10 AM, the next
    day should ideally open more than 4% higher for satisfactory results. If the stock hit its limit in
    the morning, an increase of over 3% is expected the next day; if it happened in the afternoon, a
    -2% to 2% change is a normal expectation. If it was a one-line board, an opening increase of
    over 5% is anticipated (usually avoided).

    2. Check for sudden buying activity. An indication of such activity is if the volume at 9:15 AM is
    at least 50% higher than at 9:14 AM. If the volume at 9:14 AM is 1000 lots, the increased
    activity at 9:15 AM should be 1500 lots (1000 + 1000 * 50%). A higher percentage indicates
    stronger buying activity, preferably exceeding 100%

    3. Compare the previous day's high trading volume with the morning's trading volume. If the
    morning's volume at 9:15 AM is at least 50% higher than the highest volume from the previous
    day (preferably higher or equal to the previous day's volume), it's called 'high-volume second
    phase.' These stocks tend to have a higher potential of becoming leading stocks.

    When you follow this stock selection process, only a few stocks will remain. Sometimes, only
    one stock might fit the criteria. What should you do to enter on that day?

    Several entry models for the second phase:

    Half-line board, sweeping board, arranging board, and low buy-in. This also includes entry when
    the second phase is sealed off.

    Low buy-in:

    When the stock price dips significantly, it's an opportunity for a low buy-in. If the stock aligns
    with the previously mentioned conditions and the price drops at the opening, it's advisable to
    enter with two positions (low risk). Then, during the sealing phase, add two more positions
    (certainty). This approach combines low risk with high certainty.

    Sealing phase:

    After selecting suitable stocks through the above steps, wait until they're unsealed. Once
    unsealed, during the sealing phase, add two positions. This strategy works on the principle that
    the major players withdraw their sell orders, and after the release of selling pressure, they
    continue to buy, thus ensuring higher certainty. This unsealing phase is best preferred during
    early trading, and stocks unsealed in the afternoon are generally avoided.

    Other considerations:

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