The so-called 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. In this regard, I have summarized the "Eight Secrets".
1、 Have keen market insight and sufficient viewing time.
2、 Being able to promptly identify the short-term hotspots in the market. In fact, there are always a few stocks that ignore the overall market trend and emerge from outstanding short-term trends, while driving the entire sector. 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.
3、 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.
4、 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 a low level, those whose volume ratio has increased several times or even tens of times the next day can chase the rise and enter the market, such as Chlor Alkali Chemical, Xinlian Shares, Wujiang Power, etc. in the first half of 2009. Also, when you hold a bottom position in a certain stock and the stock has just started trading, you can intervene and make a "T 0", but don't have any illusions about individual stocks that are expected to reach the limit up price before the afternoon closing. The fact has taught us too many lessons, such as Chongqing Department Store, Qilu Software, Lingqiao Shares, Zhongtong Holdings, etc. - if we can't run fast, we will fall into traps.
5、 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.
6、 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.
7、 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.
8、 Once you have chosen a short-term stock, you should resolutely follow the predetermined plan. There are many people who can choose good stocks now, but in the end, they didn't operate on them themselves. When making decisions, we should believe more in our detailed and systematic analysis beforehand, rather than letting so-called stock analysts change our will.