Super short term refers to buying and selling on the same day or buying today and selling tomorrow. The principle of selecting super short-term stocks is to choose strong and leading stocks in the market. Short term trading mainly relies on technical analysis. Have keen market insight and sufficient viewing time. Being able to promptly identify the short-term hotspots in the market.
The target of short-term trading is to choose stocks that are widely concerned by the market but most people are still hesitant and afraid to intervene. When selecting stocks from popular sectors, it is important to participate in the leading stocks with the strongest trend, rather than participating in stocks that are rising or following the trend.
Technically speaking, ultra short line candidate stocks must have a 5-day upward trend and a certain slope before consideration. The timing for buying is when the mid to long term bullish candlestick reaches a new high in volume and the 5-day candlestick stabilizes with no volume pullback. But sometimes when encountering stocks that have continuously increased in volume and skyrocketed, especially those that have increased in volume at low levels, those whose volume ratio has increased several times or even tens of times the next day can chase the rise and enter the market.
The most important thing in ultra short term trading is to set a stop loss point. Once you fail, you must have the courage to cut your losses and be eliminated. This is an iron discipline. Setting a target position is even more important when doing ultra short term trading. In principle, if you make a profit at 3 or 5 points, you will be eliminated with a profit of 3% or 5%. You can accumulate more with less! If the red candlestick turns into golden infinite extension in your eyes, then it is precisely when you need to be eliminated the most. The principle of being eliminated in the super short term is that once a stock's rise reverses, it will be eliminated. If the stock price falls below the 5-day line or is lower than the closing price of the previous two days (the 2-day moving average is flat) or the previous three days (the 3-day moving average is flat), it will be eliminated. This is a better way. Once you have chosen a short-term stock, you should resolutely follow the predetermined plan. When making decisions, one should believe more in their detailed and systematic analysis beforehand.
How to face mistakes? Because short-term trading is high-frequency, the probability of errors is much higher than that of long-term trading. It is possible to hit the limit down after buying or the limit up after selling. One of the main conditions for a trader's success is the absence of a mentality of worrying about gains and losses. In the face of failed trades, you must be able to handle them and let go. You must not be disturbed by a failed transaction.
Separate self-esteem from earning money. That is to say, starting from being able to accept mistakes. Prior to this, admitting one's failure was more painful than losing money. Don't always think that you can't make mistakes. If you're wrong, get out quickly. 'Keep the green mountains here, don't be afraid of running out of firewood.'. Leave some capital for the next transaction In this mindset, making money always comes before maintaining self-esteem, and facing losses is not too difficult. What's the big deal if you make a mistake once?
