Talking about recognition again

As time goes on, I have gained a deeper understanding of the market, so I want to update my perception of short-term market recognition and also share it with everyone!

It is divided into two parts!

One is planned, and the other is unplanned!

Planned refers to stocks you are already tracking and observing in your watchlist.

Unplanned refers to situations like today’s panel exceeding expectations, where the strongest sectors follow promptly during trading!

Basically, these two parts are always involved!

Our operation generally focuses on identifying stocks with unexpected performance!

In my view, yesterday’s panel had only one recognizable stock, which is Jufei Optoelectronics!

Once the opening direction is set with a single line, it’s mostly confusing. At this point, you can only quickly select stocks within a small range and execute the buy-in within 5 minutes!

So, what is recognition at this moment?

High trading volume at bidding, gap up, new highs, gaps, stock traits, main upward patterns!

At this time, it’s mostly based on intuition, memory, market feel, and experience!

We should keep a small notebook to record stocks that are active during sector explosions!

Also, note down some chart patterns with high success rates in upward trends!

To be blunt, it’s still shooting in the dark! But I don’t oppose it; I just don’t do it myself. It’s too subjective, and the error rate is much higher! From my experience, the probability of hitting the core stocks with this method is low! It’s more about arbitrage operations the next day!

Actually, in today’s quantitative rotation market, even if you don’t want to shoot blindly, you still end up shooting blindly!

However, I prefer planned shooting!

For example, today’s power grid sector:

Shun Na Co., Ltd. opened with a single line.

Then, Hanlan Co., Ltd., Zhongchao Holdings, China Xidian, Tongguang Cable, Baobian Electric!

I believe some of these stocks are very familiar to everyone. The feeling of familiarity makes people feel more at ease! Of course, the environment is very chaotic now, and they might underperform the next day!

But I think, compared to strangers, familiar stocks are more trustworthy!

Now, let me share my understanding of recognition!

What is recognition? It’s something you can spot at a glance! Something you can recall instantly, and even say with your eyes closed!

It can also be called familiarity! Attention, topic, popularity!

I will explain my views from these aspects!

First, stock traits!

Old stocks that are well-known, not many stocks are memorable. Let me mention some so everyone understands how important and significant these stocks are in our minds!

Hua Sheng Tian Cheng, Aerospace Development, Lio Co., Ltd., Zende Medical, Public Transportation, Zhongyida, Shunhao Co., Ltd., Chengfei Integration, Shandong Molong, Tuowei Information, Great Wall Military Industry, Hongbaoli!

Most of you probably know these, but do you remember them when a new wave of market comes? For example, Shandong Molong recently! When competing, having memory or not makes a huge difference!

Second, new familiar stocks!

I’ll call them new leading stocks or group stocks.

They are the survivors of competition, such as Yunnan Energy Holdings, which you might not have known at first, but after a day or two, you become more familiar with it!

Initially, everyone is just looking for friends, seeking allies!

Some stay with us temporarily, others for a lifetime!

And the most familiar friend is the one who never betrays us!

Third, familiar methods and chart patterns!

For example, turning weakness into strength! Repeatedly doing so builds muscle memory!

For example, breakout, “beauty shoulder” pattern.

Fourth, status!

Talking about status, some might not understand. What is status? It’s being unique, No.1!

Only the top, with nothing in between!

The recognition we talk about is always the first in each sector!

Can it be called a leader? I can’t say for sure, but at least it should be the top in its sector!

Only the top can dominate and compete for unlimited liquidity!

Having status is the key to gaining unlimited liquidity,

And with unlimited liquidity, you can buy low, chase high, or buy on dips!

In actual trading, many, including myself, tend to distort operations!

For a period, there is only one best and safest stock!

Other stocks are just dead weight!

Making profits and avoiding losses, breaking even is already impressive!

What I’ve written today, I’ve also written before!

I want to emphasize a point:

Define your own trading style!

And position your stocks accordingly!

Is it planned or unplanned?

Is it a leader, a weak-to-strong stock, a core with capacity, a group stock, or a follow-on?

Is it familiar or unfamiliar?

Is it non-mainstream, outside the pattern, emotional?

Is it recognition? Do people know it? Is it on the popularity list?

If I categorize, it’s quite simple:

1. The most resonant sectors within the day

   • Leader (core amplitude)

   • Middle army (capacity core)

   • Positioning (strength core)

   • Following (miscellaneous)

2. Group stocks

   • After sector battles and eliminations, select the strong survivors

   • ABCDE

   (I prefer to compare strength here and look for unexpected opportunities the next day)

3. Amplitude rankings

   • After the above two steps, most of the strong stocks are listed. But inevitably, some are missed!

   • Use 5, 10, 30-day rankings to find those hidden, quietly rising trend stocks or thematic stocks as supplements!

In the end, we find that the stocks that perform well are driven by internal liquidity, not necessarily by sector effects!

Sector explosions are great, but they are like flowers in a greenhouse—vulnerable to the elements. Once hit by storms, their survival is uncertain!

Therefore, I usually don’t rush to pick stocks during sector explosions. Stocks that look similar in charts, prices, and concepts can have vastly different outcomes!

This is actually a matter of value judgment!

We often go astray. To address this, I now enforce myself to either make unique choices or stay among the crowd!