Do stocks, especially short-term I think doing the limit board is the easiest to do, because the certainty of the limit board is relatively high, many famous floating capital they are done by doing the limit board, the limit board is actually to earn the next day's premium, so the day needs to be able to seal, if the first day is not sealed, then the probability of loss on the second day is very large, especially the high board, today I will introduce you to a few reasons for doing the limit board, at the end of the article I combined with pictures and texts to share the gap board, If you find it useful, you can like and collect.
There are several reasons for doing a limit on a stock:
1. The price limit board can start the market, and the price limit board can pull up a wave of the market and promote the market to climb.
2. The price limit board can promote the rapid rise of stock prices and save capital costs.
3. The price limit board can prove the strength of individual stocks and enhance the confidence of investors.
However, stocks that go up and down also carry certain risks. Because after the stock rises to the limit, many investors will pay attention to and buy, resulting in the stock price may fluctuate near the limit board, and even open the limit board. In addition, if the limit is broken by a large number of sell orders, it may cause the stock price to fall rapidly.
