It is quite difficult to truly excel in short-term stock trading, requiring investors to put in unimaginable effort. To do well in short-term trading, the first step is to choose the right stocks. Below are six tips for short-term stock selection shared by experienced investors, which you can refer to.
Tip 1: Predict the daily trading volume. There is a saying in the market that the relationship between quantity and price is like the relationship between water and a ship, where water rises and the ship rises. The only factor that can lead to a rise in stock prices is definitely the driving force of the main capital. So, with enough incremental funds entering the market, the stock price can rise.
Tip 2: The buy point is set at the moment when the third wave of upward movement begins. By observing the first wave of high-volume upward movement, it can be determined that there is significant capital intervention. The second wave of upward movement confirms the official start of the stock price. The buy point is set at the moment when the second wave of upward movement starts after the correction.
Tip 3: Check if there are consecutive large buy orders in the market. If there are consecutive large buy orders in a stock during trading, the sell orders are relatively small, and the buy orders are often executed at a price higher than the "sell one" price, then the time for a rally has come. Moreover, the higher the commission price for buying is from the "sell one" price, the greater the chance of upward movement in general. It is worth noting that if the trading volume significantly increases and the stock price actually decreases, we should be highly vigilant about whether institutions are making large shipments.
Tip 4: When the overall market is stable, individual stocks should first suppress and then pull. When the overall market trend is stable and there is often significant selling pressure in individual stocks, leading to a gradual decline in stock prices but a rebound in the closing market, investors must pay attention to the intentions of the main players. Because without intentional pressure from the main force, such a trend that deviates from the overall market is difficult to occur in a market with light trading volume, at least the stock price is unlikely to rebound in the closing market.
Tip 5: There is a pulsating rise during the trading session. The so-called pulse style rise refers to the sudden departure of stock prices from the overall market trend in a relatively short period of time and their upward movement, followed by a rapid return to their original position. Along with this wave of market trend, there is some amplification in trading volume but no obvious reversal trace.
Tip 6: Buy during the period when the daily candlestick trend changes from weak to strong, with sufficient low-level adjustments. By analyzing the K-line chart, it is first determined that the stock price has stopped falling and stabilized. Under normal circumstances, the stock price has been fluctuating slightly for several consecutive days, with trading volume continuing to shrink. If it does not hit a new low for ten days, it can be considered that the stock price has stabilized; When the stock price hits the important moving average or previous high point with high volume at a low level, if it encounters resistance and shrinks, it should be included as a key tracking object after confirming that it is a wash up behavior.
