Weekend Q&A Post

Recently, many friends have frequently asked questions, so I’m creating a summary Q&A post.[淘股吧]

①. Daily Stock Selection Criteria

Follow the top-down, multi-filter core logic of short-term trading. The goal of this logic is: to participate in the direction with the least resistance and greatest chance of profit at the right time.

Below is a breakdown of the complete framework behind this “stock selection aesthetic.”

Core Framework: Cycle > Sector > Individual Stock

All choices are based on one highest principle: go with the trend. This “trend” is the market sentiment cycle.

Step One: Identify the Market Sentiment Cycle (decide “whether to act” and “how to act”)

This is the premise of all decisions. Stock selection strategies vary greatly under different cycles.

Initiation Phase: Look for new themes that resonate with the index, participating in leading stocks or first board stocks in a 1-in-2 scenario.

Main Rising Phase: Focus on the strongest main line in the market, participating in leading stocks or stocks that are catching up within the main line.

Divergence Phase: Switch to low positions within the main line sector (doing first boards or 1-in-2), or pay attention to newly emerging transition themes.

Ebbing Phase: Stay in cash or have a very small position for trial and error, absolutely avoid mid to high position stocks.

Step Two: Filter the Strongest Main Line Sectors (decide “where to act”)

The main line sector is where funds and profit effects gather. A qualified main line must meet the following criteria simultaneously:

1. Complete structure: It has a complete structure of “top leading stocks—middle-position stocks—low-position following stocks,” indicating high funding recognition and a healthy ecosystem.

2. Capacity and popularity: The sector has a certain market capitalization capacity to accommodate large funds; it has sustained interest in financial media and forums.

3. Logical support: Driven by hard logic such as policies, industry events, or performance expectations, rather than pure rumor trading.

4. Continuity: It remains active for several consecutive days, not just a one-day event.

For example, the power sector fits this: it has Huadian Liao Energy (top leading stock), middle-position stocks, daily first board assistance, and long-term logical support of “energy transition,” hence it is continuously focused on.

Step Three: Select Individual Stocks within the Main Line (decide “which one to act on”)

This is the most detailed step, which will score individual stocks from multiple dimensions:

1. Position priority:

Leading Stocks: The overall market leader or sector leader. Participating in it requires skill and courage.

Catching-up Stocks: The first strong limit-up low-position stock (usually 1-in-2 or 2-in-3) when the leading stock fails or diverges, preferably with “new attributes.”

Intra-day Pioneers: The first stocks to lead the sentiment when the sector shifts from divergence to consensus.

2. Chip and Pattern:

Active stock nature: Historically has records of consecutive boards or limit-up on the next day with premiums.

Clean chip structure: No dense trapped plates in the early stage, recent turnover is sufficient.

Pattern breakout: In the process of platform breakout or at a key position.

3. Market and Timing (the key final push):

Limit-up Timing: Generally, the earlier a stock hits limit-up, the higher its position (except for leading stocks).

Limit order quality: The limit order is firm, with little selling pressure.

Driving force: After it hits limit-up, it can quickly drive similar stocks or the entire sector to rise.

Taking our discussed “1-in-2 in the power sector” as an example, the filtering logic is as follows:

Assuming the market is in the main rising divergence phase, with the overall leader fluctuating at a high level.

1. Define the sector: Power remains the main line, although there are gaps in the structure, first boards continue, so continue to dig for gold here.

2. Filter individual stocks: From all power first boards of the day, look for those likely to advance the next day.

3. Check the position: Prefer stocks with early limit-up timing and smooth intraday charts as “hard boards.”

4. Check the logic: Prioritize stocks with overlapping concepts like “power + energy storage” or “power + ultra-high voltage,” which have more imaginative space than pure power generation companies.

5. Check the chips: Exclude one-word boards, prefer stocks with sufficient turnover, to minimize selling pressure the next day.

6. Check the timing: If the next day during the session, the leading stock dips but this stock reverses to limit-up, that’s a strong signal of “separation confirmation,” which will increase its priority.

The most important principle: The Art of Letting Go

Truly professional stock selection lies in knowing “what not to select.” I will strictly exclude the following situations:

Non-main line miscellaneous stocks: No matter how good the pattern, if it’s not in the main line, I won’t participate.

Awkward middle-position stocks: In the ebbing or strong divergence phase, 3-board and 4-board stocks are “death zones.”

Accelerating boards with shrinking volume: Especially those that go up on a one-word board, once they open up, there will be huge selling pressure, posing high risks.

Stocks that follow late: Stocks that only barely follow and hit the board half an hour after the leading stock hits limit-up, have limited premiums the next day.

In summary, my “aesthetic” is like a strict assembly line, using a four-layer filter of “cycle—sector—individual stock—market” to filter out only those targets that resonate with the strongest forces in the market. This ensures that my chosen targets are at the core of market attention, possessing higher speculative value.

So, from now on, everyone should follow this logic to filter stocks, and stop asking me why certain stocks are not selected, but rather spend time thinking about why I selected those stocks.

② Unity of Knowledge and Action

Many friends are afraid of this and that. The pre-market strategy has been given, and it’s plain spoken, but they don’t dare to enter this or that. When they miss out during the session, they come asking if this stock can enter or that stock can enter. They like to change strategies impulsively during the session. If a certain sector weakens, should they still go for that stock? What if the stock bought according to the strategy explodes? What if they were slow to buy the stock in the strategy and missed it? Can they go for another that does not fit?

I’ve said before, I only act on the pre-market strategies I set. If it meets the criteria, I will execute firmly; if not, I’ll stay in cash. The unity of knowledge and action, as well as action and cognition, is the key to making money.

For instance, last Friday’s Huadian Liao Energy. If you went in together, by this Thursday, you could have sold for about 4 boards of profit. Those who entered tasted the sweetness of buying leading stocks, so if a new cycle leader appears later, they would dare to jump in again. Those who were hesitant missed not only those 4 boards of profit; when the next historical replay occurs, they will still hesitate. This is how the gap widens through repeated operations. Others might have made tenfold returns in a year while you are still treading water, or even halved your investment by year-end.

Since I started posting, individual stocks, except for the March 19th incident where Ruisi Kanda exploded and did not lock, but the next day it still rebounded to limit-up for profit, have all locked limit-ups. Even the March 13th failed limit-up of Jinniu Chemical still provided limit-up premiums the next day. So many times, the most important thing is the ability to act. While others are feasting, you’re still worrying if this method might choke you, if you need to buy a bottle of water to wash it down.

③ Volume

Many friends ask how to calculate the price increase and volume for individual stocks. I have answered that it’s based on personal experience, making estimates according to various situations. This estimate is not 100% correct, but it can set a relatively safe condition for oneself, and this can only be accurately estimated through experience accumulation.

I understand that many friends hope to derive conclusions from a specific formula, but if making money in stocks were that simple, there should be stock gods everywhere. However, in reality, the market always has a minority of people making money.

Experience accumulation does not happen overnight; a journey of a thousand miles begins with a single step. If you don’t start acting, you’ll always be just talking about it on paper. First, improve your stock selection aesthetic, then worry about minor details, which can yield better results. Just like buying stocks, if you really buy a good stock, your biggest concern will be how to sell at a high point; even if you miss selling at the peak, you are still making a profit. But if you buy a bad stock, you’re thinking not about gains but about how to preserve capital or reduce losses.

And remember, “you are who you associate with.” Now, a person who shares good stocks every day is standing in front of you. If you don’t cherish this, and instead keep fiddling with your messy stocks.

Regarding individual stocks’ volume and shrinkage, I’ve written about this in previous technical posts; you can check it out:
④ Communication

I came to the forum at the invitation of Brother Bing, who said there are many experts here. I was initially thinking of writing a few model articles to see if I could meet more like-minded experts and engage in more exchanges. After all, only by continuously communicating with experts can we stand firm in this market for a long time.

However, with increasing attention, I unwittingly turned writing articles into a habit after writing for about a month, far exceeding my initial expected time. Of course, the support from fans has been great, with almost every post being a top post on the hot list.

Since everyone still recognizes the content I share, I will write more. If one day you feel that the content I share has become useless or tasteless, and you no longer recognize it, I won’t insist; I’ll stop writing and deactivate my account, and we can part ways amicably, treating it as a beautiful memory in our long stock trading journey.

I came to Tao County to communicate with more people. If you are a beginner, you can gain experiences from me that other bloggers may not easily share. If you are an expert, our mutual exchange can make us both stronger. Giving is mutual; your support (likes, tips, encouragement) can boost the visibility of my posts, allowing me to connect with more people and grow stronger, thus providing you with more knowledge. I hope in the days to come, we can all learn more from each other!
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Thanks to @@Liu Chongyang High-end Medical Equipment for becoming the top tipper with 5000 points.**
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Golden fans have all followed back, and I hope to communicate more and learn from each other. I will prioritize answering trading-related questions: @Crayon Shin-chan @Yashan Jade**
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Thanks to the 20 friends yesterday: @Liu Chongyang High-end Medical Equipment @Liu Tianqi 888 @Tuixue Morsheng @Jinxih Hehe @Daily 8000 Steps @Liang Guoqing @Second-hand Daoist @YSY Getting Rich @Tian Ti 29 @Nightingale @Baijie Bai Jie @Yang Yicheng @Bingshan Sequel @Tongtong Little Cutie @Eternal Motion Machine 0668 @One Gallon Friends Circle @Yashan Jade @Sun Anian @Crayon Shin-chan @Don’t Want to Close Account for your support. And to these 7 friends: @Sun Anian @Second Long Worker @Yashan Jade @Liu Chongyang High-end Medical Equipment @Crayon Shin-chan @Don’t Want to Close Account @Bingshan Sequel for your encouragement.**

Disclaimer: The individual stocks and opinions mentioned do not constitute investment advice, and this is merely a personal review record. Operate at your own risk. (The stock market is risky; invest cautiously.)