Chapter 68: Three consecutive daily limit increases
Dafu Technology has seen a sharp rise for two consecutive trading days in April. While its stock price continued to set new highs, it not only brought it considerable popularity, but also allowed a number of shareholders to make a lot of profits .
Liu Lixin is one of them. He bet all his 100,000 yuan on 6,300 shares of Dafu Technology at 15.8 yuan in the morning of March 17, and has not made any further moves since then.
Unexpectedly, today (the 2nd), in just a dozen trading days, the market value of my holdings has reached 137,000 yuan, with a profit margin of up to 37%.
Seeing the numbers in his account growing day by day, Liu Lixin felt very excited. As a result, he worked harder recently and didn't dislike his supervisor as much as before.
This is probably because people feel refreshed when good things happen to them. Now, after get off work every day, taking a look at his stock account and checking out Gu Junhao's posts on Taoguba has become Liu Lixin's daily routine.
"Brother T hasn't sold yet, so there's no need to worry." Whenever Liu Lixin saw that Gu Junhao had not cleared his positions, that was when he was happiest. In his opinion, as long as Brother T had not cleared his positions, it meant that there was still room for growth.
As for doing intraday T, although Liu Lixin also envied it, firstly, he didn't have the time, and secondly, he wasn't good enough for it, unless he happened to catch the next day's T like he did last time when he went to Su Technology.
"I wonder what Brother T's expectations are for this stock. The money for the bride price shouldn't be a big problem, right?" If the expectations are the same as for Wangsu Technology, that would be great. From the time Brother T initially built a position to the time he liquidated his position in Wangsu Technology, the stock price must have increased by 2.5 times, right?
This is the one I followed the most promptly. If it was doubled, I would have to worry about the money for the bride price. If it was doubled, I would have some left over, which would be wonderful.
…
Thursday, April 3, is the legendary statutory decline day. At the opening of today's market, the Shanghai Composite Index opened high at 2063.50 points, and the ChiNext Index continued yesterday's sharp drop and opened low at 1326.81 points.
"Is this going to kill the market today? The ChiNext opened in exactly the same way as yesterday."
The opening of the Shanghai Composite Index was similar to that of the ChiNext Index yesterday, which made people have to doubt. However, the ChiNext Index, although opened low, did not break yesterday's low, so it opened quite well.
Dafu Technology opened relatively low today, at 21.30 yuan, 2.11% lower. The overall trend seems to be still following the five-day line.
After trading started, the Shanghai Composite Index moved in the same way as the ChiNext Index yesterday, opening high and closing low, and there was no sign of market support in the weighty sectors. In contrast, the ChiNext Index stopped falling after a slight drop at the opening.
"It didn't break yesterday's low, so it should have fallen but didn't. So there should have been a small rebound."
It seems that the trend of the ChiNext has stabilized in the short term and can continue to trade above 1,300 points for a few more days. Gu Junhao no longer cared about the index.
Turning our attention back to Dafu Technology, after experiencing five minutes of underwater fluctuations at the beginning of the opening, the stock price of Dafu Technology quickly turned positive and returned to above 22 yuan.
"The opening price is the lowest price. It immediately rose after the shock and did not pull back to the five-day line at all. It is going to rise today." Seeing Dafu Technology being so strong, Gu Junhao couldn't help but get excited.
The five-day line of the stock price is the average closing price of the stock price in the past five days. This price is not constant and will fluctuate with the stock price.
The five-day moving average has a certain supporting and suppressing effect on the stock price. The five-day moving average can be used as a reference for the short-term trend of the stock price. If the stock price is above the five-day moving average, it means that the bulls have defeated the bears, and the stock is likely to be optimistic in the future.
However, when the stock price effectively falls below the five-day line, it means that the bears have defeated the bulls and the stock price will be at risk of a correction. This is why the so-called strong market makers in the stock market will not fall below the five-day line.
As for how long it will take to pull back after falling below the five-day line and whether the trend will stop there, it depends on the corresponding environment and individual stocks and cannot be generalized.
Technology can only be used as a reference. With the A-share trading system and the increasingly diversified methods of major funds, technology is also constantly changing. Different methods are used in different time periods, and retail investors need to slowly adapt and change.
Since Dafu Technology chose to push up its stock price, it is inevitable that its five-day line will move up. At ten o'clock, Dafu Technology's stock price had risen to 22.83 yuan, and the increase had expanded to 5%.
"Looking at this trend, the volume won't reach the daily limit again today, right?" Half an hour after the opening, Dafu Technology's volume had exceeded the 100 million yuan mark. Under this situation of continued increase in volume, a daily limit is not impossible.
At 10:02, Dafu Technology's trading volume exploded again, with four buy orders of 2,000 lots. The stock price rushed straight to 23.75 yuan, an increase of 9.19%, less than 20 cents away from today's limit price.
Subsequently, on the market, Dafu Technology fluctuated around this high price position, with a fluctuation range of 2 points.
"This is a test of the market, fluctuating at a high level to see how much selling pressure there is. It looks like there won't be any problem with the daily limit today." Seeing that the selling pressure is not great and the follow-up orders are also good, Gu Junhao is still optimistic about Dafu Technology's daily limit today.
At 10:40, after half an hour of test pressure, a large order of 10,000 shares appeared on Dafu Technology's market for the first time. The stock price directly rose from 23.72 yuan to 23.93 yuan, with a daily increase of 10.02%.
"Beautiful, a large order of ten thousand shares directly closed the board." It seems that even if the hot money is taking over, today's approach does not seem to be that of an institution, but closing the board is always a good thing.
Dafu Technology's daily limit immediately attracted off-market funds. Orders for 3,000 and 5,000 shares on the daily limit were continuously added, and soon the amount of funds for the daily limit had reached 1 billion yuan.
Looking at the overall market, perhaps thanks to the high opening and low closing of the Shanghai Composite Index today, funds chose to enter the ChiNext Index, which has suffered a severe decline recently, to buy at the bottom. Today, the ChiNext Index continued to rebound after hitting a low of 1318.82 points. When Dafu Technology hit the daily limit, the ChiNext Index was at 1338.12 points, up more than 0.7%, and the intraday amplitude also reached 1.2%.
On the market, Tonghuashun rose by more than 5%, Dongfang Wealth rose by more than 2%, and Wangsu Technology, which fell sharply yesterday, also saw a small rebound today, rising by more than 3%.
However, the stock price of Wangsu Technology has fallen to around 100 yuan, a drop of 40% from its high point, and the trend is depressed.
"It's a downward trend. Any rebound is a chance to escape. It's 100 yuan now, and I haven't lost much. If it falls further, I don't know when I can get my money back." Looking at the trend of Wangsu Technology, Gu Junhao couldn't help but sigh.
It is indeed a bad idea to chase high prices, especially for stocks like this that have already increased tenfold. Once you miss it, it is best not to intervene again.
Rather than making money, what you should pay more attention to when buying stocks is risk prevention. If you buy a stock at 10 yuan and it rises to 20 yuan, it doubles. But if it falls from 20 yuan to 10 yuan, the people who bought it in the early stage will at most not make any money, while you will experience a 50% cut.
If you want to make back your investment after the stock price is cut in half, the stock price needs to double again, which is extremely difficult.
