Core first-board arbitrage method!

I’ve seen a lot of stock friends ask about trading setups via private messages. Today I’ll briefly share my personal core first-board (首板) arbitrage pattern—profit points and loss points!

First: Conventional arbitrage! Only participate in the core first limit-up!

1. On the timing of the limit-up: generally, I only do stocks that hit the limit-up before 10:00 AM. The earlier the limit-up, the better. The latest is 11:30. The earlier the limit-up, the stronger the capital, the higher its status, and the higher its ability to drive attention and identification!

2. On float market value: generally I look at those under 20 billion, and under 10 billion is even better. If the market is good, I can loosen it up to 50 billion. With a smaller market cap, guiding capital into optimizing the move to the limit-up is easier for very short-term trading, and you have more confidence.

3. The stock’s behavior is extremely active. By “active” I mean: limit-up, pullback, limit-up, pullback, over and over again—proving that the capital recognizes it, and that capital also has memory!

4. Very high identifiability. In the entire hype sector, it’s the one that lights the first spark—pushes to a limit-up, quickly pulling other names into following. When the market falls, the others fall first. This kind of high-identifiability, when it rises, is often the strongest core leader: it climbs the hardest and falls the slowest!

5. In the short term, there’s continuous positive catalyst fermentation: in sectors where traders keep cycling back and forth—stocks get catalyzed by news, the stock rises; the capital comes because of the news, because of policy, and so on.

Second: Risk control management: Conventional arbitrage is mainly split-trade (position splitting). Based on personal habits and your capital size—however, you must split the positions. If you can withstand massive volatility, putting it all on a single A below 9 actually isn’t a problem either. Most traders are still better off splitting positions to stay steadier, because massive volatility can distort a person’s trading, making it impossible to execute good buys and sells.

For selling: in a market where quant strategies are everywhere, it’s completely different from before! In the past, there was capital maintenance. Now the quants are not meeting expectations—if anything is slightly off, it’s all kinds of “nuclear sell” buttons. That can lead to breaking the order book and the stock price. So for conventional arbitrage: if you’re making money, you exit. If it’s outperforming expectations, or if it’s extremely core, you exit before the market closes if it’s not a limit-up.

Third: Types I don’t participate in—easy to lose money

1. Don’t do anything involving the opening auction. Passive-following trades—don’t participate in any opening auction. Unless your research ability is extremely strong and your understanding is unbeatable. For most opening-auction summaries, most of the time they ultimately end in losses: out of 10 losses, 8. Then it’s meaningless.

2. Don’t buy dips in high-position strong stocks. This is often when people lose the most money—it’s very easy to get trapped. Sometimes you make a big profit; the next day it opens lower and you don’t exit, giving back your profits. Or you add to the position and do a反T (reverse-timing pullback)—and that easily turns into a big loss.

3. Don’t casually participate in high-level picks (high标). Without clear high-level convergence, don’t casually get involved either. At this time, the breaker needs the right time, place, and people (天时地利人和). It’s very easy to get hurt; you’ll only participate when it’s already broken through and walked out, because that’s when it has the right time, place, and people!

4. Don’t easily place limit orders for the board (排板). For small retail investors, if you’re able to place it, many times it either ends up failing to hold the board or there’s huge divergence. It’s easy to get a failed limit-up and lose money. If you want to do it, set up conditional orders in advance or place a limit order ahead of time, or do a back-close (回封)!

Trading norms: Making money in the stock market is basically about entering with heavy positions when big trends arrive to make big money. In daily life, you either trade with small positions to “oil the machine” or stay in cash—experience the market feel (盘感). Make a move when the market is offering opportunity, then wait for the next wave. Being able to stay fully in cash is even better. If you can’t, then repeatedly doing small-position participation over and over and over—only then will your capital grow bigger and bigger!

The most important thing in the stock market isn’t offense, but defense. When you make money, make a lot. When you lose, lose less. Through repeated cycles, after a few years, you’ll come out. Finally, I’ll send everyone a saying: profit doesn’t race to be first; what matters is never-ending flow. And selling at the wrong time (selling too early, “sell-flying”) is a normal part of trading. Reduce high-frequency trading and “do less”—that’s the ultimate for ultra-short-term trading!

Trading is moving forward through countless “sell-fly” moments: take small losses, make big profits, keep getting stronger, and when you drop, keep going to set new highs!