Sharing a Stock-Picking Strategy of an Investment Expert

In stock investment, the approach to selecting stocks is crucial, and experts typically have their own unique investment styles. On Sunday, I came across a stock-picking strategy from an investment expert and found it quite insightful. I’d like to share it here, hoping it will be helpful to everyone.

1. Stock Selection
This investor’s method involves first identifying stocks that have recently shown saturated and increased buying volume, with a recent price rise of no more than 15%. From this, we can see that the focus is on trading volume—increased buying volume signals rising bullish momentum. Eliminating stocks with gains exceeding 15% avoids chasing highs and instead targets stocks that haven’t yet surged.

For such stocks, if they meet the following criteria from a swing-trading perspective:

• The trend position’s green wave band is below the 20-line or the upward wave band is below 50.

• The swing MACD maintains a golden cross (bullish crossover).
  These stocks can be considered for medium-term positions.

2. Short-Term Trading
How to operate in short-term trading? First, select stocks daily with increased buying volume and:

• Either a trend position at a low level (below the 20-line).

• Or a trend position rising from the bottom, between 20 and 60, with the swing MACD in a golden cross.
  Additionally, the "dare-to-die" funds (aggressive capital flows) must show positive (red) signals in recent days.
  
  

For such stocks, even if you get caught in a temporary dip on the same day, there’s a high probability of a rebound the next day or later, as the upward channel remains intact. When trading these stocks, use a rising-speed indicator in the morning to sort by upward momentum, focusing on those turning positive and exhibiting a short-term MACD golden cross on the same day.

Next, choose stocks with a moderate trend position and supported by increased buying volume—this indicates a strong upward trend. However, a critical rule is to set a stop-loss if the stock falls below the base level where the buying volume surged.

Finally, search directly in the rising-speed rankings. Of course, you should also maintain a stock pool to save daily alert records for easier adjustments and optimization. Investors with their own unique stock-picking strategies may choose not to follow this method.

The above is the stock-picking strategy of an expert I observed on Sunday. In practice, investors should still develop their own approaches to maximize gains in the stock market. If you’d like to learn about the "Guillotine K-line" pattern, feel free to click for more details. Wishing everyone happy investing!