Some valuable insights on relay aspects

Recently, I found that many fans don’t even have basic relay knowledge. Their operations are quite blind, and there’s no standard for whether certain stocks can be relayed. This results in a low success rate. Relay is a technical skill and carries significant risks. While successful relay can make quick profits, failure can also lead to rapid losses. In fact, if you’re unlucky, your funds could be halved in just one month. So, relay is very difficult; not everyone can do it casually. Without real skills, attempting relay is basically asking for trouble. Today, I want to share some valuable insights about relay with my fans. [Taogu Ba]

Almost all relay players select their targets based on their own review or real-time monitoring during the trading day, pre-selecting stocks for the next day. The next day, they adjust their choices based on the opening auction situation. For most people, choosing which stocks to relay is a challenge. Here, I’ll explain how to make those choices.

Main principle:
Only buy the strongest stocks within the same sector. When the leading stock is available, decisively abandon following others. When the front-runner can be bought, decisively give up the laggards.

As relay traders, we focus on stocks that have already hit the daily limit or are on consecutive limit-ups. Generally, by the third day, some sector stocks are eliminated; the third day carries high risk. Winners and losers are decided by the market, and stocks that are eliminated are often very tragic.

Case Study:

Chengxing Co., Ltd., Liuguo Chemical, Hanlan Co., Ltd. are some stocks I pre-selected before the market opened today. Hanlan had negative news yesterday, so I excluded it today. Normally, Hanlan should have accelerated. After excluding Hanlan, I focused on Chengxing and Liuguo Chemical. Chengxing is the leader, and Liuguo Chemical is following Chengxing. When the opening auction begins, Chengxing had an order block of 180,000 shares, while yesterday it had over 800,000 shares. This indicates Chengxing didn’t strengthen today and actually weakened significantly. Based on the order block size after the opening auction, I judged that Chengxing had a chance to buy today. At this point, I would decisively abandon Liuguo Chemical and buy Chengxing.

However, if Chengxing’s order block had increased at the opening—say, from 80,000 shares yesterday to 1 million today—it would mean Chengxing has no opportunity today. In that case, I would consider buying Liuguo Chemical instead.

When the leading stock presents a buying opportunity, if you hold lagging stocks or follow-up stocks, it’s a good time to sell. After selling your follow-up stocks, switch your focus to the leading stock. This is also a very important point.

Have you learned enough?