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How to choose 10 times the big cow, this is very important! Special Issue 1 of Finance Science

author:School of Finance

Summary: 7 commonalities!

10 baggers can be said to be investors' dream lovers, which can be met but not sought.

However, from the perspective of each stage, ten baggers are often the epitome of the development of the times, with certain regular characteristics.

Some people pulled out the 10 baggers in the past 10 years and found that most of them were in medicine and consumption, such as Moutai, Tongce Medical, etc., and in terms of extending the cycle, it was more than 10 times.

However, we are not talking about 10 times the long cycle, but more about 10 times the high growth explosion in 1-2 years.

For example, Oriental Communications in 2019 and Jiu'an Medical in 2022, so what are the characteristics of this kind of 10 baggers?

10 baggers feature

Market capitalization: The total market capitalization is very small, most of them are not higher than 5 billion before the launch, and the stock price of companies with small market capitalization is highly elastic and rises rapidly;

Price: low price, the general stock price does not exceed 10 yuan, with a good mass base, most shareholders do not like to buy more than 100 yuan of stocks. Of course, the lower the better, the kind of one or two pieces are easy to face the risk of delisting.

Industry: Generally emerging industries, innovative industries have short-term rapid growth conditions, and often have some disruptive significance.

For example, the promotion of 5G construction in 2019, the outbreak of overseas epidemics in 2021, and the sharp increase in overseas orders in Jiu'an.

High elasticity: Small companies in large industries tend to have more room for growth, or a lot of room for market development in the foreseeable future.

Do market value: The company's management shows a strong desire for market value management, and cares very much about the stock price, as the saying goes, "good wine must also be able to drink", for example, when the medicine was speculated, the secretary of the board of directors of Jiu'an was very good at things.

Performance: The so-called performance is a real performance income with the corresponding hype concept, which is more real than the pure concept of speculation, as for whether the follow-up performance breaks out, that is the driving force for the future stock price to continue to strengthen, but it is not the root cause of the short-term explosion.

Node: 10 baggers are hard to find, and most of the 10 baggers appear after the big fall, such as the unilateral decline in 2018 and the epidemic in 2020, which have smashed out of the relative gold pit.

How to catch

The important thing is said three times, or once again to emphasize that 10 times bull stocks are hard to find, and there may not be a 10 times bull stock in a year or two, but it does not prevent it from rising 5 times, 8 times, and so on.

In fact, I want to say that the dream should be 10 times, but when it comes to real operation, you can't see 10 times and not let go.

In addition, the characteristics of the above 10 baggers are from the perspective of effect, so our operation is to harvest the effect from the cause, to put it bluntly, the 10 baggers are not discovered by you, but selected by the market, and are the result of the resonance of various factors.

When we see it, the price is generally not too low, or it is generally up several times.

At this time, some people will be afraid of heights, and some people will be happy, if you can overcome the fear and greed of your character, in fact, 10 baggers are still relatively easy to do.

How to choose 10 times the big cow, this is very important! Special Issue 1 of Finance Science

For example, we found that when Oriental Communications, Jiu'an Medical, etc., the stock prices basically rose along the 5-day moving average, and when the real stock price peaked, it fell below the 60-day moving average and did not repair quickly.

In other words, the most fierce section of 10 times stocks is the acceleration along the 5-day moving average, do not break or go, and consider leaving the market if it is broken the next day without repair, so that you may not be able to sell the highest point, but you will also avoid some risks.

How to choose 10 times the big cow, this is very important! Special Issue 1 of Finance Science

In fact, not only 10 times stocks, but most of the doubling bull stocks of A-shares over the years have also followed this trend of 10 times big bull stocks.

The really strong ones are accelerated along the 5-day moving average, and then there will be divergent shocks and retracements, but most of them will not break the 60-day moving average, if they are broken, they need to be withdrawn immediately the next day, otherwise this strength will be doubtful, or it may be over, such as Cambridge Technology, Infineon, etc.

How to choose 10 times the big cow, this is very important! Special Issue 1 of Finance Science
How to choose 10 times the big cow, this is very important! Special Issue 1 of Finance Science

Of course, technology is only a part of the impact of the market, or the most direct surface phenomenon, if you really want to go bullish, you must need the market to cooperate, on the one hand, it is the imagination of individual stocks or plates, and on the other hand, the regulator allows or encourages the direction.

In contrast, the attitude of supervision is more important, which is why it is easier to get out of the bull after every big fall, because the market needs to be appeased, and normal supervision will be relatively loose.

Judging from the driving force of the economy and the current policy encouragement, the future bulls may still be biased towards the direction of science and technology.

Having said that, share it here today, happy holidays!

How to choose 10 times the big cow, this is very important! Special Issue 1 of Finance Science