As the name suggests, short-term trading emphasizes short holding time, frequent operations, and fast profit speed. The most crucial point is that short-term trading can help people avoid risks in the market and choose short positions in real time.

A Brief Discussion on the Advantages and Disadvantages of Short term Operations

Nowadays, many people are keen on short-term trading. So, what are the advantages and disadvantages of short-term trading? Let's analyze the pros and cons below:

advantage:

1. The holding period is short, ranging from one or two days to seven or eight days, just like a sparrow feeding, quickly moving to avoid the risk of a significant decline. Most people believe that frequent stock turnover is dangerous, but accepting a series of small losses to avoid mistakes results in a high turnover rate that reduces risk.

2. Profit is immediate, eliminating long waiting times and allowing for rapid capital appreciation.

3. Full of excitement, more enjoyment of making money.

4. Never miss any profit opportunity, the opportunity cost is relatively low.

Disadvantages:

1. Short term analysis and judgment require a high level of professional knowledge and practical operational skills.

There is a saying that goes, 'Choose one out of ten thousand short-term experts, only one out of ten thousand can produce a short-term professional expert.' Therefore, its requirements for knowledge and ability are very strict, requiring the mastery of specialized, scientific, and systematic skills. And in terms of investment scale, short-term investment is also limited. Short term investment cannot involve large-scale funds, only small funds (standardized below 5 million) can be used for participation, that is, tactical level investment. Large funds are subject to significant limitations in short-term technical aspects, such as the fact that market makers are not allowed to have more than 30% of the following volume for a single buy or sell in the market, which is a limitation on the level and scale of funds. This is another disadvantage of short-term trading.

2. Short term trading requires a high level of psychological resilience and discipline from operators. We named it Iron Blood Short Line, indicating that discipline is like blood and cannot be changed like iron, which is difficult for ordinary people to achieve.

3. The characteristic of stocks with short-term operations is that they move at an abnormal high speed.

Our iron rule for short-term trading is to strike stocks that are moving at an abnormal high speed, and their internal sub wave operation structure is safe and flawless. Abnormal refers to an unusual state, which can be classified into two types:

(1) The first type is detachment, where the movement of a stock deviates from its original normal wave trajectory, which is a very important abnormal characteristic. Before May 30th, Dongfang Electric's original movement trajectory was a slow upward channel. From May 30th onwards, it broke away from this track and accelerated its upward movement, which is called an abnormal market. This is an excellent short-term variety that can quickly generate huge profits.

(2) The second type refers to a stock that operates at an angle greater than 45 degrees. The speed of a stock's movement is measured by its 5-day moving average and horizontal line. 45 degrees is a normal market, less than 45 degrees is a weak market, greater than 45 degrees is a high-speed movement market, and greater than 60 degrees is an abnormal high-speed market. This is the best variety for short-term trading.