Many real stock market experts are engaged in "short-term stock trading", but many novice stock traders do not understand what "short-term stock trading" means. Today, the editor will talk about the advantages and disadvantages of short-term stock trading and its effective techniques, teaching you from beginner to proficient in short-term stock trading. What is short-term stock trading? Short term stock trading, as the name suggests, refers to a short-term trading process that spans from one trading day to several weeks or more.
Short term stock trading has the following advantages:
1. High yield, low risk
Due to the short trading time of short-term stock trading, investors can quickly enter or exit the market and gain profits based on real-time market trends. When there are problems in stock trading, investors can quickly escape and leave, greatly reducing losses.
2. More freedom and less pressure
When investors engage in short-term stock trading, they can flexibly arrange whether to invest or not, which is relatively free. This also reduces the psychological pressure on investors and facilitates their practical operations.
3. Improve capital turnover rate
Short term stock trading ensures that funds are in a highly flexible state, avoiding stagnation while providing more possibilities for the operation of funds, which may be more efficient and yield more benefits.
Short term stock trading is not omnipotent, it has both advantages and disadvantages. It requires investors to have a high level of sensitivity and be able to quickly respond to the ever-changing market. At the same time, short-term stock trading investments must involve small capital, which is limited by the investment scale.
Short term stock trading and buying instructions:
When the stock has been continuously declining for more than three days, but the downward trend is beginning to stabilize and the trading volume is also at the bottom, it is advisable to buy.
The decline in stock prices in the stock market is generally divided into three stages, and it is a good time to buy stocks when the third stage stops falling and starts to rebound.
3. Stock investors should make judgments based on the trend chart of the 10 minutes before the start of each day and the trend chart of the moving average in the past 10 days. If the increase is less than 5% and there is no obvious upward trend, the stock cannot be purchased. Otherwise, the stock can be purchased.
The short-term moving average of short-term stock trading shows an upward trend within three days, while the long-term moving average of long-term stocks shows a downward trend within six days. When the two lines intersect, it is the time to buy this stock.
Short term stock trading and selling instructions:
After a period of ups and downs, if the stock price does not rise but begins to decline, it is time to sell the stock.
2. If the stock price does not continue to grow after a sharp rise, and will continue to decline after two or three drops, you can sell the stock at this time.
3. When the stock price continues to grow and the growth rate is high, and the trading volume of the stock is too high and no longer growing, it should be sold first.
When the moving average of the purchased stock starts to stabilize and decline within 3 days, the stock should be sold.