Fieldwork: Profit Method for Large Capital

Author: Yiyang / Country: Mainland China
Publisher:
Publish Date: 2006-01-01
Features:
Seeing the rapid rise in stock prices brings us great pleasure. Only by using the correct trading methods can we truly grasp every upward move of the stock. Since the stock hit the limit up yesterday, it opened strongly higher today, further reinforced by the index's simultaneous strong rise, making it highly probable that the stock will continue to hit the limit up. After the stock's surge ends, a short-term decline occurs, which often creates a false impression of a top, causing many investors to feel fearful. But is that really the case? Let's analyze it from the perspective of trading volume. During the decline, there are no signs of increased trading volume; instead, it gradually shrinks. How could the manipulators (large holders) exit smoothly under such conditions? Therefore, the rapid decline is merely a shakeout by the manipulators. Only by washing out short-term profit-takers can the manipulators gain absolute control. After the shakeout ends, the stock is again strongly pushed up. During this phase of the rise, trading volume still does not expand—is the capital involvement weak? Not at all. This volumeless rise reflects the manipulators' high level of control. They have bought a large number of shares, so they can easily push the price up without needing much trading volume. Thus, the surge after the shakeout is a signal of the rise continuing, and investors who have already bought should remain patient. The stock hit the limit up again at 11:00 a.m., achieving two limit-ups in two days. Only correct judgment methods can help investors achieve such high returns. P8