Which is better, the first board battle method or the dragon head battle method?

Answer 1

There were advantages and disadvantages to the first board and the dragon head tactics. It was not easy to determine which was better. The following was an analysis from different angles:

** 1. Potential income **
1. ** Dragon Head Combat Technique **
- The leading stocks had a strong leading role in the sector. Once caught, they could obtain high returns in the rising trend. Because it was the most influential and leading stock in the sector, according to the logic of the strong, it could bring a high premium to the stock price during the trend. For example, the leading stocks that took the lead in the initial stage of the sector and had a continuous limit may continue to rise, and the profit space is huge.
- However, there was a certain degree of difficulty in identifying the leading stock, especially before it had fully established its leading position. If they misjudged, they could face greater risks. For example, when market sentiment changed or new competing stocks appeared, the so-called "dragon head" could quickly lose its advantage.
2. ** First Battle Technique **
- The first board tactic was to intervene at the first limit of the stock. If they successfully captured the first stock with the potential to become the leader, they could enter at a lower cost and enjoy a larger increase in profits in the future. Moreover, from a probability point of view, many stocks in the market appeared on the first board every day, so the range of choices was relatively wide.
- However, there were many stocks on the first board, and most of them might only be short-term movements, making it difficult for them to develop into truly strong stocks. The success rate of the first and second board closing was low, and there was a high misjudgment rate. It was possible that the stock could not continue to rise after buying, and even the stock would open sharply lower the next day after the limit.

** 2. In terms of risk control **
1. ** Dragon Head Combat Technique **
- The leading stocks fluctuated greatly. Due to the high attention they received from the market and the frequent entry and exit of funds, the stock price fluctuated violently. Although the gains from the uptrend were considerable, once the trend reversed, the rate of decline could be very fast. Therefore, strict stop-loss and stop-profit rules were needed, and positions had to be flexibly adjusted according to market sentiment and trends.
- The leading stocks were often in the hot spots and focus of the market. They were easily affected by factors such as supervisory policies and market rumors, increasing the risk of uncertainty.
2. ** First Battle Technique **
- As the stock price of the first board was relatively low, the cost of buying was relatively low. In terms of risk control, if it was found that the trend of the first stock bought did not meet expectations, it could stop the loss in a relatively timely manner, and the loss would be relatively limited.
- However, the first board strategy was easily affected by short-term emotional fluctuations in the market. For example, when the market sentiment was high, many first-board stocks might just follow the trend and lack internal motivation to rise. When the market sentiment fell, these stocks might fall first.

** 3. Difficulty of operation **
1. ** Dragon Head Combat Technique **
- Accurately identifying the leading stocks required a deep understanding and judgment of the market's plate rotation, individual stock fundamentals, market sentiment and other factors. It was difficult to distinguish between different types of leading stocks such as the overall leader, cycle leader, and plate leader, and to grasp the buying opportunity, such as the initial intervention and the buying opportunity after the correction.
- When the market hot spot changed rapidly or the market environment was complicated, it was very demanding for investors to discover new leading stocks and switch operations in time.
2. ** First Battle Technique **
- It seemed that the first board strategy only needed to pay attention to the daily limit of the stock, but in fact, it was not easy to select the stocks with potential from the many stocks with daily limit. One needed to consider the reasons for the daily limit (such as sudden good news, the behavior of the main capital, etc.), the fundamentals of the stock (market value, price, industry, etc.), and the technical form.
- Moreover, the first board battle method required investors to have strong execution power and decisively stop losses when they found that they did not meet expectations. Many investors might find it difficult to overcome psychological barriers in the operation to stop losses in time. While watching the Olympics, you can also read the wonderful novels related to the Olympics!