In the short-term trading market, sector initiation usually presents two main forms: full-line explosive type and high-standard driven type. These two types have their own characteristics and significantly impact investors' trading strategies.



A full-scale explosive launch refers to a situation where almost all stocks within a sector rise collectively on the same day. In this case, the sector quickly becomes the market focus, but a clear leading stock has not yet emerged. This type of launch often stems from sudden significant positive news, resulting in highly consistent movements among the stocks within the sector. For investors, it is crucial to closely monitor the news and react quickly in such situations.

In contrast, a high-leading stock-driven launch is led by a leading stock that drives the entire sector. In this model, high-leading stocks typically need to rise continuously for 3 to 5 trading days to generate a significant sector effect. When the sector effect is evident, not only has the leading stock been established, but the hierarchical structure within the sector is also relatively complete, with each stock playing a role at different positions, collectively promoting the sector's development.

For traders, it is crucial to identify these two types of initiation. In a full-line explosion type, quick reactions and broad coverage may be more effective; while in a high-standard-led type, following leading stocks and paying attention to sector rotation may be more critical. Regardless of the type, timely grasping the market rhythm and managing risks reasonably are the keys to successful trading.

It is worth noting that while sector launches provide opportunities for short-term trading, investors should remain cautious. The market is volatile, and excessive chasing of highs and lows may pose risks. It is recommended that investors have a clear profit-taking and stop-loss strategy when participating in such trades, and constantly monitor market changes to respond to potential risks.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 9
  • Repost
  • Share
Comment
0/400
ShitcoinConnoisseurvip
· 07-16 05:13
It's all just a facade; suckers find it sweet.
View OriginalReply0
PebbleHandervip
· 07-15 17:52
The leader scythe plays people for suckers, that's for sure!
View OriginalReply0
DevChivevip
· 07-14 13:52
I understand everything, but I'm just not making money.
View OriginalReply0
OnchainHolmesvip
· 07-13 06:51
What are the little guys panicking about? Just follow the big brother and it will be done.
View OriginalReply0
GateUser-e87b21eevip
· 07-13 06:50
Waiting for the Full Position bull market again
View OriginalReply0
StealthDeployervip
· 07-13 06:41
You have experience just by looking at the market.
View OriginalReply0
RektHuntervip
· 07-13 06:39
Steady, the hunters in A-shares.
View OriginalReply0
GasWastervip
· 07-13 06:31
smh same pain as waiting for gas to drop... fomo hits different when ur stuck watching charts all day
Reply0
ZkProofPuddingvip
· 07-13 06:22
Not losing is a victory!
View OriginalReply0
View More
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate app
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)