What is a leading stock?
Leading stocks are divided into industry leaders and market leaders. Different leading stocks have different screening methods.
Industry leaders, also known as leading white horse enterprises, refer to enterprises with excellent performance and large market value, which are in the forefront of the whole industry in terms of product market share, profitability and market competitiveness.
Industry leaders value fundamentals, such as industry prosperity, intra-industry competition pattern, company business model, company performance, company market share, etc. As long as the fundamentals of the industry and the company have not changed significantly, the stock price will fluctuate around a reasonable valuation, and the trend will continue to hit new highs.
Unlike the skyrocketing trend of industry leaders, the stock price trend of industry leaders is relatively stable. It is precisely because the market position and profitability of leading companies in the industry are difficult to change greatly in the short term, and as long as the fundamentals of the industry and leading companies have not changed significantly, the stock prices of leading companies in the industry will fluctuate around a reasonable valuation, and the trend will continue to hit new highs, which is more suitable for medium and long-term holding.
Because the leading company in an industry is basically fixed, the essence of choosing an industry leader lies in choosing an industry. Choosing an industry requires a certain understanding of macroeconomic policies, national industrial policies and industrial trends.
Market leader: also known as the hot-spot popularity leader, as the name implies, refers to the stocks that stand out from the hot spots in a certain period of time and have the leading role of plate appeal. When it rises, it will rise the fastest, the earliest and the most, and it is very resistant to falling when it is called back.
Market leaders usually have substantive themes, sudden favorable policies, or hidden events of the company to enhance expectations, thus forming a strong logical support for the company's speculation. Generally speaking, the risk of being a leading stock is relatively small, but the income is very large. But it must be emphasized that the leading stocks in the market are not static. Of course, the rapid rise takes a short time, and generally the space will double or even double in a short time. Therefore, as the leading stock in the market, we are basically short-term.
Leading stocks are mostly produced in stocks that have fallen sharply in the early stage or have been sideways for a long time, which means that the floating chips are clean, the chips are concentrated, the main control is high, and the space in the later stage is large to facilitate the pull-up.
Leading stocks are generally low-priced stocks with moderate market value. It is relatively easy to get out of the leading position near 10 yuan, and it is easy for retail investors to follow suit and become the object sought after by the public. Leading stocks usually do not follow the broader market and are often independent. They dare to make a strong pressure plate when the market rises, and they will take the lead in starting the rise and may even drive the market to rise if they don't adjust or fine-tune when the market falls. Before the whole theme broke out, the leading stocks were very low-key, and the fewer fund institutions among tradable shareholders, the better, indicating that there were fewer start-ups and pull-ups of large funds in the later period, and the leading stocks had more space.
The business of the leading stock company has the highest correlation with its theme, that is, as soon as you see the name of the stock, you think of what it does. Business is the easiest to understand and easy to identify the funds in the market, so it is sought after and promoted. In the main rising stage of leading stocks, the continuous daily limit requires patience to hold shares, generally along the steep slope of the 5-day line, without breaking through the 5-day line, turning around or getting off the bus.
Grasping the market leader is suitable for short-term speculation, which requires a broad vision and unique vision, and is extremely sensitive to major information at any time; Of course, this requires very high technical analysis and psychological quality of investors.
Comparatively speaking, the judgment of leading stocks in the industry will be relatively simple and relatively stable. It will be more difficult to grasp the market leader. At present, the hot spots in the market switch quickly, and it is likely to be caught if it is not adjusted in time.