【Dry Goods Post】Leading Stock Trading Series: Leading Stock Relay Practical Strategy

Hello everyone, I am the Digger, happy to meet you. I focus on strong stocks; where there are leading stocks, you’ll find me! If you have any questions, feel free to comment and exchange ideas so we can learn from each other and improve together! [Taogu Ba]

To reward my loyal followers for their trust and support, today I am directly providing a set of the most hardcore, fully actionable, all-link closed-loop “Leading Stock Relay Trading Strategy,” which is more detailed, aggressive, and practical than before. I only focus on leaders, not miscellaneous stocks. Below are conclusions from extensive experience and multiple summaries—every sentence is a classic, simple and straightforward, with no wasted words. I hope this helps you improve!

1. First, define: What exactly is a “leader”? (If it doesn’t meet all criteria, it’s not called a leader)
You only recognize these 4 points; missing any one means it’s not a leader:
1. Highest market height (current top consecutive boards)
2. Core leader of the main theme, with a strong rally, and the sector has a central army and follow-up
3. Can withstand divergences, can re-encase, can weaken then strengthen
4. Most popular: highest trading volume, top in Baobao, highest turnover, and first in the order book
In a nutshell:
Highest height, strongest sector, most popular, best divergence resistance = True Leader

2. The universal rule (violate once, lose your account once)
1. Only trade genuine leaders; no latecomers, no branch stocks, no fake leaders
2. Only trade turnover leaders; no pure one-word leaders
3. During emotional downturns, do not relay high-position leaders
4. Only buy low on divergence/rebound, do not chase high mid-rally
5. Only one stock per day, only one leader trade per day

3. Pre-market: Complete preparation process for leader relay (8:00–9:15)
1. Market sentiment scoring (life and death line)
Focus on 4 indicators:
(1) Highest board in the market: ≥4 boards = leader cycle
(2) Yesterday’s consecutive boards/yesterday’s limit-up: red = tradable
(3) Number of limit-downs: ≤5 = safe
(4) Breakaway rate: <30% = healthy
Conclusion:
(1) Strong cycle: confidently trade leaders
(2) Weak cycle: only buy first-in/low buy on leaders, do not chase highs
(3) Downtrend: stay in cash

2. Confirm main theme (only keep one)
(1) Most limit-ups
(2) Driven by policies/events
(3) Large-cap central army stabilizes the sector
(4) Lasts more than 2 days

3. Lock in the only leader
Sort the consecutive board stocks:
1. Highest board
2. Most popular within the same board
3. Sector leader
Finally, keep only one leader

4. Make today’s plan
Write three sentences in advance:
(1) Entry point: breakout/low buy on divergence
(2) Position size: 10%, 20%, 30%
(3) Stop loss: -3% / -5%

4. 9:15–9:25 bidding: judge leader strength at a glance
Qualified bidding (can relay):
(1) Main board: +2% to +7%
(2) ChiNext/STAR Market: +4% to +10%
(3) Bidding volume ≥ 1.5 times yesterday’s bidding volume
(4) Price moves unilaterally upward, no rushing ahead

Discard immediately if:
(1) Open low
(2) Open high with no volume
(3) Final bid drops sharply
(4) Sector opens collectively low

5. Three standard buy points for leader relay (only these 3 types)

Buy Point 1: Rebound and breakout after divergence (most stable, highest win rate)
Applicable: 2-in-3, 3-in-4, 4-in-5 main rising phase
Conditions:
1. Break up → break away → shallow pullback (≤3%)
2. Volume-supported rebound, yellow line holds
3. Sector not collapsing
4. The only leader in the market
Action: Buy immediately at the rebound breakout

Buy Point 2: Weak to strong breakout (most powerful buy point in main rising wave)
Conditions:
1. Yesterday’s weak board/volume divergence
2. Today’s low/opening flat then quickly turn red
3. Volume rush for shares, sector assists
4. Before 10:00, reach the board
Action: Buy at the moment of the breakout

Buy Point 3: First-in-weak low buy (safest before downtrend)
Conditions:
1. First breakaway, green close but not limit down
2. No huge volume, no collapse
3. Main theme still intact
4. Low buy at the end of the day (after 14:30)

Position: 10% trial, 20% add-on

6. Standards for leader relay at each stage (1→2→3→4→5→妖)

(1) 1-in-2: Confirm the first leader
1. Strongest main line first board
2. Sufficient turnover
3. High-volume bid at open
Action: Rebound breakout buy
Position: 20%

(2) 2-in-3: Establish the leader
1. Sector’s only core
2. Can withstand divergence, can recover from breakaway
Action: Rebound/weak to strong
Position: 20–30%

(3) 3-in-4, 4-in-5: Accelerate main rising wave
1. Only trade the highest board in the market
2. Must have sector support
3. Reject pure volume reduction acceleration
Action: Divergence rebound
Position: 20% (reduce at high levels)

(4) Above 5 boards:妖股 stage
1. Focus on sentiment, not logic
2. Don’t chase high; only low buy on divergence/rebound
Position: 10%

7. Intraday risk control: handling breakaway/weak decline
1. Breakaway but strong support:
(1) Drop <3%
(2) Volume supported, no panic, hold and wait for rebound

2. Breakaway and weaken:
(1) Drop below opening price
(2) Drop >5%, no recovery, stop loss unconditionally

3. All-day poor board:
(1) Repeated breakaways, weak order book, treat as weak stock next day, bid directly out

8. Closing judgment: can you “lie flat” tomorrow?
Strong leader (high premium next day):
(1) Stable order book
(2) Healthy turnover (10–20%)
(3) Sector strong
(4) No sell-off at close

Weak leader (must sell next day):
(1) Poor board, huge volume
(2) Sparse order book at close
(3) Follow-up stocks dropping in volume

9. Next day sell SOP (most critical for leader selling):
1. Gap up beyond expectations:
(1) Surge at open
(2) First volume spike, sell on stagnation
(3) 7–10% surge without limit-up → sell immediately

2. Open flat/slightly high:
(1) No attack between 9:30–9:40
(2) Turn red or weaken → sell immediately

3. Gap down (key selling point):
(1) First rebound weak, must clear before 9:32, no hope for rebound

4. Only condition to hold:
(1) Strong open
(2) Sector strong
(3) Rapid rise
(4) Still the highest board
Otherwise, sell all and exit

10. Positioning rules (no full position on leaders):
1. Main rising strong cycle: 20–30% per stock
(1) Volatile cycle: 10–20%
2. High/downswing period: 0–10%
Total position always ≤50%

11. Simplified daily timeline (follow daily routine):
(1) 8:00 Check sentiment, set main line
(2) 8:40 Lock in the only leader
(3) 9:15 Confirm strength at bidding
(4) 9:30–10:00 Wait for rebound/weak to strong buy
(5) Handle breakaways during the day per rules
(6) 14:30 Judge next day’s premium
(7) Before 9:40 next day, sell out

12. Ultimate mantra (memorize):
Only do leaders, not miscellaneous stocks,
Only do turnover, not volume reduction,
Only buy rebound and breakout, not mid-rally chasing,
Buy on divergence, sell on rebound,
Reduce at high, stay in cash during downtrend.

13. Leader relay mnemonic + 10-second judgment method, super simplified, memorize and use directly.
(1) 12 sentences to memorize (must memorize):
1. Only do leaders, not miscellaneous stocks, only main line, not obscure stocks
2. Only rebound and breakout, not mid-rally chasing, only turnover, not volume reduction
3. When sentiment is bad, stay in cash; if height isn’t enough, don’t relay
4. If bidding is weak, delete; if open weak, cut immediately
5. Divergence buy, sell together; weak to strong is a big profit point
6. Breakaway not panic, watch support; if below open, exit
7. Poor boards next day don’t matter; low open rebound immediately exit
8. High open, surge and stagnate, sell; no limit-up, withdraw
9. At high levels, only do market leaders; avoid follow-up and latecomers
10. Never full position; if wrong, decisively exit
11. Before 10:00 decide win or lose; after 10:00, no new buys
12. Profit from sentiment premium; don’t gamble on妖股 at the top

(2) 10-second judgment: Can I do a leader today?
(Check before open, decide immediately whether to open position):
1. Height: Are there more than 3 boards?
2. Consecutive board index: red or not?
3. How many limit-downs?
4. Main line: Is there a solid main line?
5. Leader: Is it the only highest board?

If 3 fail → stay out
If 2 fail → try small position
If all pass → normal trading

(3) 10-second judgment: Is this stock a true leader?
1. First in consecutive boards
2. Can lead the sector
3. Can recover from breakaway
4. Most popular
5. Central army supports

If missing 2 points → fake leader/following → don’t buy

(4) 10-second judgment: Is the buy point correct?
Only recognize 3 types:
1. Rebound and breakout after divergence
2. Weak to strong breakout
3. First-in-weak low buy

If not these 3 → don’t buy
If chasing mid-rally → don’t buy

(5) 10-second judgment: Will it break away or not?
1. Breakaway, drop <3%, support stable → wait for rebound
2. Breakaway, drop below open → exit
3. Drop >5% → exit immediately
4. All-day poor board → next day bid out

(6) 10-second judgment: How to sell tomorrow? (most critical)
1. Gap up:
(1) Surge at open → sell
(2) First volume spike, stagnate → sell
(3) 7–10% surge without limit-up → sell

2. Open flat/slightly high:
(1) No attack 9:30–9:40 → sell

3. Gap down (key sell point):
(1) Weak first rebound, before 9:32 → clear out, no rebound hope

Only if:
(1) Open strong
(2) Sector strong
(3) Rapid rise
(4) Still the highest board
Otherwise, sell all and exit

(7) Minimal execution (one sentence):
Good sentiment, solid main line, true leader, strong bidding, buy rebound, cut breakaway, sell on next-day surge.

Digger’s trading principles:
1. Position: follow the 3-3-3 rule, only one part each time
2. Mode: core stocks in the hot sector, mid-rally low buy, one-in-two or leader breakout
3. Discipline: only buy and sell, no averaging or T+ adjustments
4. Focus on core themes and stocks
5. Only act within the pattern; do not trade outside
6. During main rise, focus on leaders; if leader breaks, watch for one-in-two, extreme market, core low buy
7. Don’t look at first board, don’t trade mid, don’t buy in downtrend

14. Classic case review:
Previous targets: Huadian Liaoning, Hangdian Shares, Hanlan Shares, Yueneng Holdings, Shunna Shares, Jinniu Chemical, Sanfangxiang,
Pingtan Development, Shenjian Shares, Guangdian Electric, China Gold,
Some are leaders, some are fakes trying to become leaders; all mainly operate around the main theme.

Tomorrow’s goal: check comments and the next main post for updates.
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