My friends often ask me how to make money in the short term, how to learn, and what aspects to pay attention to. The only thing I emphasized in all the communication that needs to be taken seriously is the control of withdrawal. Making money in the short term is actually not difficult. You can buy low, chase up, or hit the market. As long as you can form a suitable operating system, you can make money in the appropriate market conditions. But earning more does not necessarily mean victory. Most people are prone to significant setbacks, and after working hard for half a year, they will eventually return to pre liberation times.
As for how to control the pullback, the most important thing is to actively adjust my mentality. In the past, I was basically full of stocks. After the stock market crash, I closed my financing and became more cautious in my operations. Although I often missed out on some bull stocks, I have never experienced a significant pullback again. Now, I feel very relaxed and comfortable doing short-term trading.
I summarize the specific operation as follows:
1. Willing to take profits and stop losses, not seeking to buy at the lowest and sell at the highest, not afraid to sell flying bull stocks. Simply put, it means getting rid of the control of greed and not taking chances. The most poisonous poison in the stock market is actually hope. Many retail investors I have encountered have gone through various roller coasters, from short-term to medium-term, and finally become shareholders. You should know that the profits and losses of the stock market are the same source. If you hold onto a bull stock today because of luck, you will definitely hold onto a black swan in the future because of hope.
2. Try to subtract as much as possible, reduce trial or emotional operations, and operate on as few stocks as possible. Many people have the problem of itching when it comes to short-term trading. When they see stocks they think are good, they want to buy them, and when they see stocks they are interested in rising, they want to chase after them. They only focus on profits and cannot see risks, which is very dangerous. My first consideration for short-term trading is not profit, but risk. Only when you have a certain understanding of the risks of this stock will you be more confident in your operations. A few of my retail friends and I always talk about opportunities when talking about stocks. They only think about how much they can earn after buying, without considering the risk before buying. If there is a decline, it will either be a state of confusion and uncertainty, or they will cling to it with a sense of luck, and eventually lose out in various ways.
3. Learn to be short, don't buy stocks just for the sake of buying them. The most common moment for a significant pullback in short-term trading is the crazy pullback followed by a panic plunge. When we accumulate experience to a certain stage, we will have a basic understanding of market risks. As long as we can hold back our short positions at critical moments, we are not far from success. Of course, knowing is easy but doing is difficult. Adjusting one's mindset in the stock market is a practice, and the ultimate goal is to overcome oneself. When you find that the time of being short is getting longer and the mindset becomes more and more peaceful, victory is already beckoning to you. When you can successfully control the drawdown and prioritize risk in your operations, you will find that compound interest growth exceeds your imagination.
Don't excessively pursue short-term super high profits. Profit and loss come from the same source. If you want to seize every opportunity, you will inevitably be unable to avoid risks. Compound interest is the king. Let's work together!
