Share practical skills for short-term stock trading

(1) What is short-term trading

Short term trading refers to the trading in which investors buy and sell in a short period of time to earn the price difference.

Short term trading refers to the trading behavior where the holding time is less than or equal to 20 trading days. According to this standard, short-term trading can be further divided into two-day trading, weekly trading, and two-week trading.

The stock selection for two-day trading is highly speculative. When choosing this type of stock, the risk is much higher than in general stock trading.

Weekly trading is actually a correction of two-day trading, and in many cases people prefer to choose this method. Its advantage is that it can allow profits to grow more confidently.

Monthly trading is the longest trading unit in short-term trading. If we want to achieve a 30% profit in the six-month upward trend, then you must strive to achieve a profit of 10% or more every month, which is the most basic requirement for monthly transactions. Monthly trading is a trading method that strictly follows the 20 day or 18 day benchmark cycle, ignoring price fluctuations below the week. The stop loss level is set at 5% below the last purchased position to avoid being cleared out by the market in advance.

The purpose of short-term trading is to maximize profit by fully utilizing capital efficiency. This is the fundamental purpose of short-term trading, because what we are engaged in is a long-term stock speculation rather than, or has never been, to win the company represented by this stock and share the profits that this company may bring.

The key to making profits from short-term trading lies in first judging the basic trend of the stock and the timing of the buyer's decision. If an established trend starts to rise and the time period is also in the bottom zone, then our short-term trading begins. At this point, we can temporarily leave the charts above the daily line and investigate the market clues revealed by short-term charts.

(2) How to speculate in the short term

What strategies should investors adopt for trading operations? Before entering the market and starting practical operations, we first need to position ourselves in the market, because any buying and selling behavior that does not adjust investment strategies based on trend changes is foolish and may lead to frustrating failures.

In actual practice, many investors do not understand what they are doing and whether they have the ability to engage in speculative operations during speculation. The more specific manifestation of speculative operations is short-term trading, rather than frequent or random buying and selling. Many people enjoy short-term trading, but it is not very clear what conditions are required for short-term operations, when they are suitable to be carried out, what advantages short-term operations have, and what practical constraints they face.