pertwk Chapter 5 Certainty of Buying at the Daily Limit Up
Chapter 5 Certainty of Buying at the Daily Limit Up
After Li Chao returned to the classroom after getting his haircut, the teachers didn't seem to have any particular opinion, but he did attract the attention of some of the students.
He spent the entire afternoon making an English newspaper, which the school had specially subscribed to for their elite class, from the second year of high school to the third year, basically two sets per week.
They have at least seven or eight similar documents, not counting the ones they bought separately.
In short, as long as you want to do problems, there will always be more problems to do.
Li Chao also looked at some math problems. He was completely confused when he looked at them, but when he found the answers, he suddenly understood.
But when it was actually his turn to do it, he couldn't think of any formula to use or from which angle to solve the problem.
Apart from some very simple, easily recognizable trigonometric functions.
However, I still get confused about things like sine and cosine sometimes.
It's not that I don't know how, but that I've lost detailed understanding and that sense of familiarity that comes with effortless ease.
Anyway, the day passed by in a daze, and Li Chao didn't look for Qin Nuanyang again.
At 9:30 p.m., after finishing his evening self-study session, Li Chao immediately returned to his rented room, sat on the bed, and reviewed the day's market conditions on his phone.
He felt okay about trading while attending classes.
For short-term trading, the key is post-market analysis, which he can do after school.
Secondly, there's the opening auction the following day. The most important part of the opening auction is from 9:20 to 9:25. Focusing on these five minutes is enough.
For Li Chao, one-third of the trading time occurs during this period.
Then, five minutes before the market opens, between 9:30 and 9:35.
Half of his trades will occur at this point in time.
He rarely buys tickets after 9:35.
If he hasn't found a suitable ticket beforehand, he won't buy it and will remain in cash.
Coincidentally, 9:30 to 9:40 is break time.
Actually... his model is both difficult and simple; broadly speaking, it's called the "high-opening strategy."
To explain in detail would be a bit difficult, as there are too many branches and the market is constantly changing, requiring adjustments at any time.
There is no guaranteed way to make money. No model can guarantee a 100% success rate. Any model in the market can be artificially created and could be a scam.
"The market isn't doing so well..."
Yesterday's highest limit up was three consecutive limit ups, but today it failed to advance to four consecutive limit ups, indicating that short-term sentiment was severely suppressed.
Li Chao never trades stocks that hit their first limit up, because the success rate of advancing from the first limit up is too low. He prefers stocks that hit their fourth limit up or higher.
For others, the higher the price rises, the less they dare to invest; for Li Chao, the higher the price rises, the greater the certainty.
After reviewing the data, he was most optimistic about North China Pharmaceutical. Although it only had three consecutive limit-up days, it actually had five limit-up days in six days. It broke its limit-up streak when it tried to go from two to three limit-up days in the first wave.
He hadn't participated in this stock; the consecutive limit-up days were suppressed, and he couldn't remember it clearly.
Anyway, we'll see what tomorrow brings. If the opening auction goes as expected, then in his opinion, it's a viable option.
Before he knew it, Li Chao had already selected more than a dozen targets, which were generally mediocre.
After adding the items to his watchlist, Li Chao began to recall some of the short-term super market trends this year.
It would take more than twice the space to exist in his memory.
Short-term speculation usually requires an anchor.
For example, explosive performance, being in a hot trending sector, a change in the actual controller, or company restructuring.
The main market trend in the second half of the year will be in technology and various blue-chip stocks, while the overall short-term performance will be relatively poor.
For the short-term market to improve, it needs a breakout leader, also known as a leading stock.
If the vast majority of stocks in the market fail to advance from the third to the fourth consecutive limit up, or even fail to advance from the fourth to the fifth consecutive limit up, then it means that the market's potential is suppressed to the third or fourth consecutive limit up.
Without a clear target market, no funds will be willing to invest in high-priced projects, and chasing high prices is basically a sure way to lose.
Only when a game-breaking dragon emerges can short-term sentiment improve.
Li Chao knew who the game-breaking dragon was this year, but it would take at least half a month for the opponent to take action.
He couldn't remember the exact time, so he could only add it to his watchlist and pin it to the top to see when it would appear on the first board.
If you rely on your own abilities, you definitely won't play the first board, but if you rely on cheat-like vision, the first board is the most cost-effective choice.
Around 11 o'clock, the noise around the rented house subsided considerably, and many students had already gone to sleep. Only then did he take his plastic basin and towel and go into the bathroom.
After taking a shower, I lay in bed, and as if triggering a switch in my body, I fell asleep in less than a minute.
The idea that young people are so good at falling asleep as soon as their heads hit the pillow has gradually evolved into a joke or banter online.
In reality, who wouldn't envy someone who can fall asleep instantly?
Li Chao had never felt so relaxed before.
I woke up feeling completely refreshed.
After washing up, I went to the classroom.
High school life is monotonous, and for senior high school students, it is almost unchanging.
Read aloud in the morning, eat breakfast, go to class, eat lunch, take a nap, go to class, eat dinner, attend evening self-study, and go to sleep.
Upon waking, first press Ctrl+A, then Ctrl+V.
Senior year of high school is like a history of adult videos.
Li Chao took his morning reading seriously. He wanted to memorize more things, and he even did a Chinese language test yesterday.
That thing, even a dog wouldn't do it.
The school ordered all sorts of mock exam materials, but not a single one for the Chinese language subject.
After morning reading, I ate in the cafeteria, and then it was time for the first and second classes.
Near the end of the second class, Li Chao secretly took out his phone from under his desk and glanced at it.
It's already 9:20. The stocks I was closely watching last night didn't open well today, except for North China Pharmaceutical, which opened with a limit-up.
After five consecutive days of limit-up trading, the market opened directly at the limit-up price today, indicating that the market is accelerating.
If the stock opens at the limit up price, Li Chao definitely won't buy it, because he doesn't know how many more limit ups it could go.
There's only one possibility for buying at the limit-up price: it's a stock with very high expectations, and only if it hits the limit-up price for several consecutive days. Only then would someone place an overnight order to queue up and try to get in.
Clearly, North China Pharmaceutical does not fit this model.
About three minutes later, Li Chao noticed that North China Pharmaceutical's stock price had opened up and it had stopped hitting the daily limit.
This situation depends on the circumstances. If the price drops too much, for example, from the daily limit up to only one or two points up, then there's not much point in participating.
He wouldn't participate in the opening auction for such a stock. The short-term market is bad, and it's a critical juncture where the price is moving from three to four consecutive levels. He can only wait for the opening auction to end. Otherwise, even a second before the opening auction ends, the price could be driven down by a large amount of capital, leaving no room for regret.
At 9:25, the opening auction ended, and Huabei Pharmaceutical opened nine points higher.
Okay!
For Li Chao, this trend was in line with expectations; normally it would open high and immediately hit the daily limit.
He waited and waited...
The bell may ring for the end of get out of class with a delay of a few seconds, and the time he can buy it may only be one or two seconds.
I pre-ordered the price limit up and placed it under my desk, tapping the screen every ten seconds or so to prevent the phone from turning off.
Finally, the time jumped to 9:30, and Huabei Pharmaceutical's stock price instantly hit the daily limit.
He had already entered the price for the limit-up in the buy column, and bought in the instant the price hit the limit!
Then, about four seconds later, it was successful.
Li Chao only buys when the stock hits its daily limit, mainly because of the certainty of the price movement.
He rarely buys on dips because the uncertainty is too great.
After that, he stopped looking at his phone.
Even after class, he didn't look at the book; instead, he took out some practice problems and started working on them.
The A-share market operates on a T+1 trading model. Stocks bought today cannot be traded on the same day. Even if a stock hits its daily limit down, you can only watch helplessly. There's no point in wasting time or energy.
However, Qin Nuanyang was not as calm as him.
When she got home last night, she watched several stock trading videos to learn when the market opened and closed, and even searched for insider information to ensure she made a profit.
Surprisingly, the online opinions were remarkably consistent, all calling it a scam.
She was genuinely afraid that Li Chao would lose money.
At 9:30, she took out her phone, logged into her account, and took a look.
With just one glance, a stock that was previously empty now appears in the watchlist.
This means that Li Chao has already bought in.
When she opened the transaction section, she was surprised to see the total assets.
Yesterday there were over 13,450, now there are only over 12,800 left.
The daily profit and loss reference showed a negative number.
Today's profit/loss: -652
In just two minutes, I lost over six hundred?
Didn't this guy say he had inside information? Didn't he say it was a sure thing that he could make money?
Also, why do you only buy when the price hits the daily limit?
This guy is incredibly stupid!