Wind Tiger Cloud Dragon - Interview with Stock Market Masters

Author: Hu Hongxia
Publisher:
Publish Date: 2006-03-01
Features:
Host: Sometimes we find that individual stocks open at a limit-up or reach a limit-up within minutes of opening and are firmly locked in that position by strong buy orders until the close. Is this type of limit-up suitable for investment? Hou Xiaoxuan: I believe this is a genuine limit-up, indicating that the main force capital is extremely determined, willing to buy no matter the amount. This approach serves two purposes: preventing others from jumping in and sending a strong signal to the market. Li Zhichao: If this occurs when the stock price has just risen from a low level or at a turning point in a slow bull market, it often signifies the start of a rapid rally, and the stock may still limit-up the next day, with a substantial overall price increase. In such cases, we can decisively follow up on the next day for short-term trading. If we already hold such stocks, we can continue holding them until the stock eventually shows a high-volume long bear candlestick before selling. Meng Mingqiang: This type of limit-up may also occur on a high-value plateau where the stock price has already been heavily inflated. When the price slowly declines and reaches a key moving average, such as the 60-day line, the main force capital may suddenly push it up, creating the illusion of a new rally. In such cases, we must be cautious. If the high-value plateau does not show significant volume, and the main force is not actively selling, we can consider small-scale entry. However, if the platform is clearly experiencing distribution, it is better to avoid chasing. It is better to give up an opportunity than to take a risk. Cao Wei: The key to investing in limit-up stocks lies in chasing the rise, but chasing requires timing. First, observe the trend—only chase limit-ups when the trend is upward, and avoid chasing limit-ups when the overall market trend is downward. Second, consider the position—do not chase stocks that have already risen significantly to a high level; instead, it is better to choose limit-up stocks that have just started to move upward for entry. Third, observe the time of the limit-up—most stocks that limit-up within the first 40 minutes of the trading day have sufficient value for chasing investment. If a stock struggles to reach a limit-up position in the closing hours, it is generally best not to chase it easily. Sun Xinyi: I believe that when observing whether a stock's limit-up is a recent one, it is generally more suitable to invest in the first recent limit-up. If a stock has multiple limit-ups in the recent period, even if they are not consecutive, investors should not easily chase the rise.