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Leading Stock-Bottom Fishing strategy

The strategy of buying at low positions is the fastest and most profitable, but it is also easy to lose
money. It can be said that risks and opportunities coexist

First of all we will see what is leading Stock:

To use the leading-edge method, you must first understand what a leading is. Different people may
have different understandings of leading. My personal understanding is as follows

1: Popularity

The leading stock must first be a popular stock. Its performance must be ranked among the top 50 in
the popularity list of each trading software, and it must be at the forefront within the range of sharp
rises every day.

2:High Standards

Leading stocks should rise positive or above for at least 3 consecutive days. My personal
understanding is that it usually rises by more than 10% on the same day!

3:Devil Stock: (Exceptional Performers)

"Devil Stocks" are a special kind of leading stocks. They are known for their strong and
continuous positive performance, marked by a steady rise in stock prices. This consistent
upward movement sets them apart in the stock market.

4: Gather Support

Leading stocks set the tone for the entire industry. When these leaders make a significant move, it's
like a rallying cry for other stocks in the same sector. If the leader experiences a sudden surge, it often
prompts a chain reaction, with other stocks following suit and rising in tandem. In simpler terms,
these leaders lead, and others willingly follow, creating a collective upward trend.
5:Recognizable

It means you tell others what stocks they know and how they have been trending recently

Second: let's break it down

Imagine the leading ticket as the favorite of investors. It's like the popular kid in school. But even
popular kids need a break sometimes. This break helps build up more energy and interest. Think of it
like recharging a battery for the next day.

The first position of the leader, makes sense because it has a strong and lasting effect. But sometimes,
it's not always clear why things happen the way they do. It can seem a bit like following a tradition.

These strategies are quite profitable, especially when there's a lot of interest in the market. It's like
when more people use a path, it becomes a well-worn road. Just remember, all the fancy tools used
in this strategy are based on the same principles
Third: Alright, let's break this down into simple terms

When it comes to using the "Leading Stock bottom fishing " method, it's important to
know when to make a purchase. There are two good times to do it:

At the end of the first negative day: This means you buy when the stock's value has
gone down for the first time in a while.

The day after the first loss: If you miss the first opportunity, you can still buy the
stock the day after it has gone down.

Remember, it's all about choosing the right moment to make your move

How to buy on the first cloudy day

Buying on the first cloudy day means getting a certain type of stock when it's not
doing very well in the stock market. Imagine the stock market being like the weather,
and on this day, it's a bit cloudy, meaning the stock isn't performing at its best. When
you buy on a day like this, you're hoping that the stock will bounce back and improve
in the future. It's like buying a discounted item in a store, hoping its value will go up
late

(1) Buying Low on the Left:

On that day, the stock price went up and down quickly, with many people buying and selling. But, it
didn't drop below a certain point. Instead, it started moving in a different direction, down, and during
this time, it settled down in the market. This actually means that the downward momentum, or the
force pushing it lower, had worn out.

(1) Low absorption on the right side

"Low absorption on the right side" means that when the stock price is higher than its average price
over a period of time, it's a good sign. This indicates that there is strong support for the stock at this
level, and it's a good time to buy because the chances of making a profit are high.

Note

Here's an important tip: When buying on the same day as the first cloudy day, it's best to avoid stocks
that are suddenly dropping a lot. These kinds of drops often lead to more losses. However, if a stock
has been doing really well and hasn't had a big drop yet, it's less likely to suddenly plummet. In fact, it
might start going up again the next day. So, it's a good idea to be cautious and not jump into buying
on the same day a stock takes a big fall.

Buying After the First Loss:


Buy at a Lower Price: On the day after the first loss, try to buy the stock at a lower price. It's like
getting a discount.

Act Fast After a Big Drop: If the stock falls a lot on the first day after the loss, jump in as soon as the
market opens. Make sure there are enough people buying and selling, and that the stock is popular.

Swift Entry on a Slow Day: If the market starts off slow or a bit lower, but then the stock suddenly
starts going up quickly, that's a good time to jump in. This strategy is about buying when the stock is
getting stronger during the day.

Remember, this method is all about finding the right moments to buy stocks after a setback. It's like
taking advantage of a sale at a store!

The selling point:

Since buying low in the market's leaders can be risky, you need to be careful when you decide to sell
your stocks. There are some rules you can follow for deciding when it's a good time to sell:

Bottom Fishing Method 1: If it’s not strong, then use the selling point method

(1) It means there wasn't a sudden and significant drop in the stock's price on the first day. The stock
closed the day without a big jump upwards. So, on the second day, it's not a good idea to rush in with
high expectations.

(2) If the stock had a big surge in price on one day, it's not advisable to expect it to keep rising the
very next day. After a significant increase, it's better to step back for a while and see what happens on
the second day before making a decision.

Method 2: Technical Support Model Sales Method

5-day moving average selling method: Another way to decide when to sell is by using a method called
the "5-day moving average." This means that you keep holding onto the stock, but if the market
closes below the 5-day moving average, it's time to let go. This method is especially good for
safeguarding your investment in the later stages of a trend. However, it's important to remember that
while this method can lead to bigger profits, it also comes with a higher level of risk. So, it's crucial to
be cautious.

Benefit and disadvantage

Advantage:

Avoiding Herd Mentality: It's good not to blindly follow what everyone else is doing. Instead of just
going along with the crowd, it's better to take a step back and think for yourself. This way, you can
make more informed decisions.
Staying Persistent: After facing a challenge or setback, it's important to keep going. Don't give up
easily. By staying committed, you can continue to grow stronger.

Disadvantage:

Short-Term Gains: Sometimes, focusing on short-term trends in the market can lead to gains.
However, this approach may not always lead to the best long-term results. It's important to balance
short-term gains with long-term stability.
In simpler terms, it's good to think for yourself and not just do what everyone else is doing. Keep
going even when things get tough. On the flip side, while short-term gains can be tempting, it's
important to think about what's best for the long run
The leading principle of buying low and investing in inexpensive stocks

Picking the Right Stocks: Choose stocks that are part of the popular and growing sectors of the
market. These are the areas that many people are interested in, where a lot of attention and
investment is going.

Timing is Everything: This strategy works best when the stock market is in its initial upswing, like the
first wave of a ride at an amusement park. If it's the second or later wave, it's harder to make big
gains unless the topic or theme is exceptionally exciting and attractive to investors.

negative example

On the first day, the stock started poorly and had a short time of struggle. It went down significantly
during the day, but towards the end of the day, it suddenly shot up. The positive momentum
continued the next day, and by the end of that day, it closed on a positive note, showing a long
upward trend during the day

2: The day after the first negative factor, there is a significant increase in value. This means that after a
not-so-good day, the stock sees a big improvement.
Failure case: Sometimes, after a stock surges one day, it takes a nosedive the next day. On the first
negative day, it doesn't reach the high it achieved during the previous day's surge, and it ends up
being a day dominated by gains rather than losses.

Successful cases with extended buy points refer to situations where investors make successful
purchases in the stock market after careful analysis and timing. This means they choose the right
moment to buy a stock, and their investment turns out to be profitable over an extended period of
time. It showcases their ability to make well-informed decisions that lead to financial gains.
.

This Leading Stock bottom Fishing method is a strategy where both risks and opportunities
are present. It relies on a keen understanding of market characteristics, searching for leading
stocks, and taking swift action when the right opportunity arises. It's like being calm and
patient when needed and moving quickly when the time is right, much like a rabbit.

However, it's important to remember that these rules are not set in stone. The investment
market is ever-changing, and no single set of rules can guarantee success every time. It's
crucial to adapt and make informed decisions based on the current, real-time market
conditions.

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