In China's A-share market, there are limits on the ups and downs, which are all 10%, that is, the so-called daily limit and daily limit. The increase of 10% is aimed at the stock price of the previous trading day, that is, if the stock price reaches 10% today, it will not increase again, but it will not affect the transaction, but once it reaches the daily limit, the purchase will be closed.
Because the stock price is high at this time, few people sell it, and everyone is unwilling to sell it. There are also daily limit and daily limit applicable to all domestic A shares. In addition, the stocks listed for the first time on the same day did not have daily limit, and the warrants in the stock market did not have daily limit and daily limit.
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The main bookmakers usually take a strong upward trend in the process of pulling up, pulling up the daily limit, so as to attract the attention of investors and follow the trend of speculation, so as to achieve the purpose of gathering firewood and raising the flame.
But generally speaking, for most investors, it is best not to capture this type of daily limit. In fact, there is no need to capture this type of daily limit. The purpose of catching the daily limit is to improve the investment income and pursue high income, rather than chasing risks and looking for traps.
The sharp rise after the opening will often form a larger profit space, providing short-term investors with opportunities for operation. At this time, there are often short-term customers cashing out, which leads to the stock price falling.
Baidu encyclopedia-daily limit