Recently, I observed an interesting phenomenon in the market—stocks hitting the daily limit-up show vastly different subsequent trajectories. Some stocks, after hitting the limit-up, only consolidate for a day or two before turning around and continuing to surge; others remain in a bottoming phase for over ten days.

At first glance, they seem to start from the same point, so why do their fates differ so much? The core difference lies in traders' choices. When a limit-up occurs, many are tempted by the expectation of a "reversal rally," hoping for a quick turnaround. The problem is, from a probability perspective, such strong reversal patterns are far from the norm—most of the time, you end up holding through a prolonged bottoming process, with profits gradually eroding without realizing it.

True short-term trading experts have already understood this. They don't obsess over how the stock will develop after hitting the limit-up; instead, they focus their energy on analyzing technical patterns before the surge. Breakouts from consolidation boxes, volume-price coordination, moving average turnarounds—these details can tell you the likelihood of a rise. Once you master the ability to precisely identify targets before explosive moves, missing one or two reversal opportunities is simply not a big deal. Because your approach is: take profits and secure gains → quickly lock in new breakout signals → continue rolling with the trades.

In other words, instead of stubbornly holding onto a stock in hopes of a reversal, it's better to decisively exit after taking profits, then use the same methodology to continuously capture the next limit-up opportunity. That is the correct way to approach short-term trading.