Short term investment refers to the investment behavior of buying low and selling high to obtain differential returns within two or three trading days or one or two weeks. Once the stock price falls below the investor's buying price, clear the position and sell, and then purchase other items. When engaging in short-term trading, the short-term fluctuation range and upward potential of stock prices are often the most important concerns for short-term investment, while the fundamental factors such as price to earnings ratio and performance of listed companies are not very important.
Although short-term trading is a quick way to make profits, it requires higher investment levels and requires investors to be sensitive, have a certain amount of viewing time, and pay attention to viewing methods. Without certain operational skills and experience, it is difficult to achieve good returns by rashly engaging in short-term operations.
Top 10 Tips for Short term Trading of the Most Comprehensive Stocks
1、 Quick in, quick out
This is a bit like a hot dish, put it in and heat it up, then immediately take it out. If it takes too long, not only will it burn the dish, but it will also damage the container used to serve it. I originally wanted to fast forward and stir fry, but being trapped for a long time is a losing move. Even if you are trapped, you must follow the iron law and get out quickly.
2、 In the short term, we need to catch the leader
This is closely related to herding sheep. The leader is running west, you can't go east. The leader goes up the mountain, you can't jump off the cliff. If you can't catch the leader, it's also good to catch two sheep. The iron rule is not to rear end sheep, to buy overpriced ones, not only running slowly, but also possibly falling behind.
3、 Increase when rising, reduce when falling
This is the same principle as the bicycles we ride every day. When going uphill, if you step hard with all your strength, you may fall to the ground; When going downhill, hold the brake tightly, safety comes first. The iron rule is that once the brakes fail, you must abandon the car to protect yourself, otherwise it will be dangerous to collide with the car.
4、 Even the worst stocks can rebound after falling continuously by 50%
It's like riding a roller coaster, falling from the top of a mountain into a valley, and due to inertia, it always rushes up a distance. Stocks that have experienced significant bearish sentiment and have been halved, regardless of how poor their fundamentals are, have a 20% rebound. The iron rule is not to be deeply in love. After rebounding to a resistance platform or filling two gaps, one must decisively get off the car.
5、 Don't underestimate in a bull market
This is like a football match in sports competition, where strong teams may not necessarily win over weak teams. Coldness often occurs because the ball is round. Which dark horse in a bull market didn't come out of a niche stock? The iron rule is not to favor a 'red card', as it may result in being sent off.
6、 Buy stocks with a 8% drop and resolutely stop loss
This is a lesson learned from the following: when playing chess, follow the 7 steps. In a passive situation, be sure to lose your "pawn" and "car" to save your funds in order to have a chance of turning the tables. The iron rule is mainly aimed at avoiding systemic risks when stopping losses. Not adapted to technical corrections, because a small 'pawn' crossing the river is better than ten 'cars'.
7、 Sell during three consecutive bearish periods at high levels, buy during three red soldier periods at low levels
This is like a must see every day. Dark clouds are everywhere, and rainstorm is coming; The three suns of the Yang line bring prosperity, and the sun shines brightly. The iron rule is that the market maker will use this scam line to wash the market or relay the decline, and should identify it based on the basic information of the individual stock.
8、 Stocks that go against the trend during a major market crash
This is undoubtedly like the seaside, only when the tide recedes can one see who is swimming naked. There are two possibilities for the naked person: one is wearing an expensive "invisibility cloak"; One is that they really don't have money to buy underwear. The iron rule is that a bullish trend against the market may be supported by large funds, leading to a significant increase in the future market; It is also possible that the market makers are luring more people to lend, and the key is to see if they can make up for the decline.
9、 Dare to buy stocks on the daily limit up board
The reason why chasing the daily limit up is called a daring team is because it requires courage and risk-taking. This is like rock climbing with bare hands, very dangerous, stepping on it with one foot will result in free fall. When you climb the mountain peak, you will see that the mountains are small and your wealth will increase rapidly. Because as long as the limit up is blocked, there will be more limit up afterwards. The iron rule is to never let go before the consecutive limit up is opened, as letting go will undo all previous efforts.
10、 Buying the limit down board that has been opened by a huge amount
Massive limit down, quickly lifted by large orders, should not hesitate to advance. It's like watching fireworks in the middle, first turning from green to red, and then soaring into the sky. Under huge amounts, it is generally possible to go from the limit down to the limit up, with 20% of the gains on the same day. Iron laws are beautiful fireworks that quickly turn into smoke and clouds, and are immediately sold out when bidding the next day.
Buying Tips
1、 New high gap
From a technical analysis perspective, a gap is generally a clear trend signal. If the stock price jumps up short, it indicates that an upward trend may be coming; If the stock price experiences a downward gap, it may indicate a correction or decline. How will it be interpreted when the stock price reaches a temporary high in a certain way?
Market significance:
During the upward phase of the market, there are favorable developments in the sector. Increasing trading volume and hitting the limit up will absorb all the trapped chips, indicating that the main players do not care about the current cost of building positions, and there is a lot of room for further growth in the future.
Technical points:
1. The previous trading day before the gap appeared was a limit up candlestick or a candlestick with a shadow, and the corresponding volume of the limit up could be significantly increased;
2. On the day of the gap, the stock price started to rise strongly at the opening, with no signs of filling the gap;
3. Before forming a gap, it is best for the stock price to increase by no more than 20% from the start.
Best Buying Point:
1. When the stock price is adjusted to the gap in the middle of the day, it shrinks. When the momentum is exhausted, it is buying.
2. When the stock price breaks through in volume and forms a gap, decisively pursue it.
II
The low price zone that appears at the end of a sustained decline is called "", which is a signal of bottoming out and rebounding. Especially for some low opening jumping stars, their bottoming out signals are even stronger. Appearing in the low price zone, the stock price is expected to form a reversal and emerge as a mid price trend. Many stocks' bottoming out reversals start with a cross star pattern, so it is necessary to study the low jump cross star pattern to improve the chances of capturing bull stocks.
Technical form:
In a single day candlestick pattern, a cross star usually indicates that both long and short sides are evenly matched, with buying and selling changes and the possibility of a turnaround. After a long period of significant decline in stock prices, a cross star appears in the gap, preferably accompanied by increased trading volume. At this point, it often means that the power of both the long and short sides has evolved from the advantage of the short side to the formation of a balance of power between the two sides, and the bottoming out is expected to be completed. If a large bullish candlestick appears with increased volume the next day, the advantages of multiple parties will be established, and the stock price will sharply turn upwards.
Ten tips and four intervention methods for short-term stock trading, pure knowledge!
Operation points:
1. This signal must be located in the low price zone after a long-term decline in stock prices, with high credibility.
2. The daily candlestick shows an increase in trading volume on the same day.
3. If a bullish candlestick appears the next day, the signal is more reliable and can be boldly followed up, holding onto the middle line.
3、 Kill Yin and Rise
The strategy of "killing yin and rising" mainly describes an important method of short-term operation. Without a doubt, the skillful use of this "killing yin and rising" technique will give you a satisfying sense of profit! But I must tell you, don't be complacent just because of one or two successes. The short-term operation method of killing yin and rising emphasizes avoiding short-term risks rather than shortcuts to short-term profits.
4、 Excessive volume
The graphic features of excessive volume:
1. When the stock price crosses the top, it releases a huge trading volume, which is sometimes several times higher than the previous trading days.
2. When increasing volume, sometimes it is a single large bullish candlestick, and sometimes it is a few gentle bullish candlesticks. In short, there is a combination of trading volume when crossing the front head. Generally speaking, the effect of multiple bullish candlesticks with increased volume is better than that of a single bullish candlestick.
3. After a breakthrough in volume, the short-term and medium-term moving averages must be in a long position.
Ten tips and four intervention methods for short-term stock trading, pure knowledge!
The significance of excessive market volume:
1. If the stock price wants to reach a new high, it will inevitably surpass the top. There are two common forms: easy overselling and excessive volume overselling.
2. Excessive trading volume refers to the situation where the banker has not yet completed the position building and most of the chips have not been locked in. By using a large amount to rush past the top position, it is possible to forcefully build a position.
3. And the front head of excessive volume is now the bottom of the rising wave.
4. After excessive trading, the previous head was dismantled and became the support line for future stock prices.
