
Learning section📑: These four conditions must be met before selecting individual stocks for trading:
Now, let me talk about the four key points of themes
First, there must be logical support, meaning policy news or events must be significant, new, and strong, with solid logic.
Second, the sector's pattern is crucial—either it has bottomed out (with various bottoming patterns like L-shaped or N-shaped) or it's in an upward driving wave pattern, making it suitable for speculation. If the sector's structural pattern is poor, even with logical support, institutional funds won't participate. They're here to make money, not to bail out trapped positions.
Third, the sector's trading volume must show a significant increase, indicating that institutional funds are also rallying to speculate in this sector.
Fourth, the sector's sentiment must be noticeably stronger than other sectors, with more limit-up boards, consecutive limit-ups, good profit effects, and strong sentiment. The main theme must be robust and sustainable, with the sector index rising steadily along the five-day moving line. If a new theme doesn't show sustained growth for at least three to five days, don't bother researching or watching—it's likely just a one- or two-day rally.
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