1、 Transaction volume.
The stock proverb goes, 'Quantity leads price.' Quantity is the forerunner of price, and the rise in stock price must be accompanied by quantity. The increase in trading volume means an increase in turnover rate, an increase in average holding cost, and a reduction in upper range selling pressure, which is why stock prices continue to rise. Sometimes, when the banker's chips are well locked in, the stock price may also shrink and rise, but the situation of shrinking and rising will not last long, otherwise the average holding cost cannot be increased, the selling pressure increases significantly, and the stock lacks sustained upward momentum. Therefore, short-term operations must choose stocks with high volume, especially paying attention to stocks with high volume at the bottom.
2、 Graphics.
Short term trading should not only pay high attention to trading volume, but also pay attention to changes in graphics. There are several graphics worth paying close attention to: W-bottom, head and shoulder bottom. Arc bottom, platform, ascending channel, etc. When the volume of W bottom, head and shoulder bottom, and arc bottom breaks through the neck line, it should be the buying opportunity. There are two points that must be highly noted here. Firstly, it is necessary to break through with a large volume in order to make an effective breakthrough. A breakthrough without trading volume coordination is a false breakthrough, and the stock price often quickly returns to the starting level. Secondly, the reliability of breaking through at low prices is higher, and breaking through at high levels with large volume is likely to be a "bull trap" created by market makers, luring retail investors to follow the trend and achieve the goal of selling. Many times, when breaking through the neck line, there is often a pullback confirmation, which can also be a good opportunity to build a position; The stock price platform is consolidating, and the volatility is getting smaller and smaller, especially when closing at a low level with several crosses or small bullish lines, the stock price often chooses to break through upwards; Stocks that adopt an upward trend can be bought when the stock price hits the lower limit, especially when the lower limit is the 10 day or 30 day moving average, and sold when the stock price hits the upper limit. In addition, there is also flag shaped organization. The operation tips for organizing two important shapes in a box shape are similar to those for a W-shaped base, and will not be repeated here.
3、 Technical indicators.
There are countless technical indicators in the stock market, each with its own focus. Investors cannot cover everything, they only need to be familiar with a few of them. Common technical indicators include KDJ, RSI, etc. Generally speaking, when the K value crosses the D value twice at a low level (around 20%), it is the best time to buy; When the D value is crossed twice at a high level (above 80%), a dead cross is formed, which is a better selling opportunity. When the RSI index is between 0-20, the stock is oversold and can be opened for trading; At 80-100, it is considered overbought and can be closed. It is worth pointing out that the biggest drawback of technical indicators is their lag, and using them as the sole reference standard often leads to significant errors. Many strong stocks have high and stagnant indicators, but their stock prices continue to soar; Many weak stocks have reached low levels in their indicators, but their stock prices continue to decline. Moreover, when using technical indicators, market makers often make a mess of the indicators when purchasing, and the indicators are almost perfect when shipping. Using indicators to cheat money is almost a common market making technique for market makers. Therefore, when applying technical indicators, it is necessary to comprehensively analyze various aspects, especially the relationship between quantity and price, for in-depth analysis.
4、 Moving average.
Short term operations generally refer to the three moving averages of five days, ten days, and thirty days. The five-day moving average crosses the ten day and thirty day moving averages, and the ten day moving average crosses the thirty day moving average, which is called a golden cross and is a buying opportunity; On the contrary, it is called a dead cross, which is the selling opportunity. The upward alignment of the three moving averages is called a bullish alignment, which is a sign of strong stocks. The five-day, ten day, and thirty day moving averages are buying opportunities when the stock price shrinks and retraces (note that it must be a shrinking and retracement). It depends on the trend of individual stocks and the overall market to decide which moving average to buy when drawing back; The downward alignment of all three moving averages is called a bearish alignment, which is a sign of weakness. Not suitable for intervention.
Short term trading can cause stock prices to soar and plummet. Short term experts should not only learn how to take profits, but also learn one important thing: cutting meat. To have the courage to participate in short-term operations, one must have the courage to admit defeat. Keep the green mountains here, don't be afraid of running out of firewood. When you make a judgment mistake and buy a falling stock, you should sell it decisively to prevent deep hedging. The lost mulberry and elm trees are harvested in the east corner. As long as one is good at summarizing the reasons for judgment errors, it can also be considered as a compensation for cutting flesh. When trading stocks in the short term, it is important to fast in and out, and set a stop loss level that depends on individual circumstances. The specific value can be 5% or 10%. If the stock price falls below the stop loss level, it is necessary to sell decisively and not hold onto illusions. Even if the stock price still has the potential to rise, one should avoid risks and exit the market, strictly following the stop loss level.
