For true ultra short term traders, trading is not a zero sum game. There is gold everywhere and opportunities to make a fortune. For traders with low transaction fees, they are engaged in the world's best profession, earning profits that others in other industries can never dream of with lower risks.
When the market allows, the larger the trading volume, the better, and the shorter the trading time, the better. Only in this way can we earn more money in less time and with lower risk.
Short term trading sense is developed one by one, and within 10 seconds of entering the order, there is a sign of lifting the sedan chair. It is basically a beginner's level. Short term trading sense is developed one by one, as the saying goes, practice makes perfect. The reason why I emphasize the simulation market is because only by carefully comparing the simulation with the actual trend can you clearly discover which market is suitable for you and which one you cannot grasp, that is, sufficient preparation work should be done before entering the market.
Conduct a trend analysis before buying stocks
1. Is the market in the early stages of an upward cycle.
2. Which sector is favored by macroeconomic policies and public opinion guidance, what are the representative stocks of that sector, and whether the trading volume is significantly higher than other sectors. Identify 5-10 target stocks.
3. Collect all relevant information on the target stock, including the company's geographic location, circulation, business trends, annual and interim reports, shareholder meeting (board of directors) announcements, market commentary, and other related reports. Exclude varieties with large circulating stocks, stagnant stocks, or significant operational issues that currently have no hope of restructuring.
Judging based on trading volume
1. Trading volume helps to predict when a trend will reverse: a high volume long bearish line is a sign of a top, while extremely shrinking trading volume indicates that selling pressure has disappeared and is often a signal of a bottom. Mnemonic: Price stability and quantity contraction are the bottom.
2. The continuous trading volume of individual stocks exceeding 5% is a clear sign of active main players. Short term trading volume is high, and the stock price has good elasticity, so short-term trading opportunities can be sought.
3. After a large volume increase and sideways consolidation, a stock shows no volume increase, which is a sign of high concentration of main chips and controlling the market to rise. At this time, transactions are extremely rare, which is a good opportunity to buy in the middle line.
4. In the event of a sudden high and large bearish candlestick, the situation is unclear, and immediate elimination is necessary to prevent major bearish factors from leading to a catastrophic decline.
How to determine the timing of short-term selling based on trend lines
(1) Stop loss when the upward trend line is breached by the stock price
During the process of rising stock prices, one low point is higher than another. Connecting the two low points together forms an upward trend line, which reflects the upward trend of the stock price and provides support for it.
According to the length of time the stock price has been rising, the upward trend can be divided into long-term upward trend, medium-term upward trend, and short-term upward trend.
When the stock price has been rising unilaterally for a long time, once the stock price falls below the upward support line from top to bottom, the daily candlestick is often a strong bearish or large bearish line, indicating that the upward trend has been disrupted. At this point, regardless of whether there is support from high trading volume, one should exit the market.
In practical operation, the short-term upward trend line can be divided into the following three situations: first, the short-term upward trend that appears in the medium-term upward trend; The second is the short-term upward trend formed when the stock price rebounds during the mid-term downward trend; The third is the short-term upward trend that appears in the medium-term horizontal trend.
In the mid-term upward trend, the stock price mainly rises, with the low and high points continuously moving up. But after the stock price rises for a period of time, there is often a pullback, and when the stock price falls below the short-term upward trend line from top to bottom, stop loss immediately.
In the mid-term downward trend, the stock price mainly falls downwards, with the low and high points continuously moving downwards, but the stock price often rebounds after a period of decline. This rebound is the short-term upward trend that occurs during the mid-term decline of stock prices, at which point the stock price will be supported by a short-term upward trend line. When the stock price falls below the short-term upward trend line, it indicates that the short-term rebound has ended and the stock price will enter a new round of decline. At this time, it should be the selling opportunity for short-term rebound.
In the mid-term sideways consolidation trend, stock prices fluctuate within a certain price range. If there is a large room for stock price volatility, it will form numerous short-term upward and downward trends. When the stock price falls below the short-term upward trend line every time, it is the opportunity to sell in the short term.
The above is an explanation of complex short-term techniques using the most common sense of life. Investors should avoid blindly applying them and should operate flexibly based on their practical experience. I hope it can be helpful to everyone. Pay attention to the official website of official account, and share more stock trading courses with you.