The so-called short-term stock trading is a popular term in the market, which means that the buying and selling process takes a relatively short time, and there is no specific regulation on how short it is. It can range from one trading day to several weeks or even more.
However, from the perspective of participants' wishes, the shorter the better, preferably reaching the limit, which is one trading day, that is, the super short term of the existing market. If T 0 trading is allowed, the goal is to have no overnight chips on that day. Of course, it is quite difficult to truly excel in short-term stock trading, requiring investors to put in unimaginable effort.
Ten tips for short-term stock trading
1、 Quick in, quick out
This is a bit like heating dishes in a microwave, putting them in and immediately taking them out after heating. If it takes too long, not only will it burn the dishes, but it will also damage the container used to serve them. I originally wanted to fast forward and stir fry, but being trapped for a long time is a losing move. Even if you are trapped, you must follow the iron law and get out quickly.
2、 In the short term, we need to catch the leader
This is closely related to herding sheep. The leader is running west, you can't go east. The leader goes up the mountain, you can't jump off the cliff. If you can't catch the leader, it's also good to catch two sheep. The iron rule is not to rear end sheep, to buy overpriced ones, not only running slowly, but also possibly falling behind.
3、 Increase when rising, reduce when falling
This is the same principle as the bicycles we ride every day. When going uphill, if you step hard with all your strength, you may fall to the ground; When going downhill, hold the brake tightly, safety comes first. The iron rule is that once the brakes fail, you must abandon the car to protect yourself, otherwise it will be dangerous to collide with the car.
4、 Even the worst stocks can rebound after falling continuously by 50%
It's like riding a roller coaster, falling from the top of a mountain into a valley, and due to inertia, it always rushes up a distance. Stocks that have experienced significant bearish sentiment and have been halved, regardless of how poor their fundamentals are, have a 20% rebound. The iron rule is not to be deeply in love. After rebounding to a resistance platform or filling two gaps, one must decisively get off the car.
5、 Don't underestimate obscure stocks in a bull market
This is like a football match in sports competition, where strong teams may not necessarily win over weak teams. Coldness often occurs because the ball is round. Which dark horse in a bull market didn't come out of a niche stock? The iron rule is not to favor "red card unpopular stocks", as this may result in being sent off.
6、 Buy stocks with a 8% drop and resolutely stop loss
This is a lesson learned from playing Chinese chess. When playing chess, one must follow the 7-step strategy. In a passive situation, one must lose their "pawn" and "car" to ensure that their funds are saved in order to have a chance of turning the tables. The iron rule is mainly aimed at avoiding systemic risks when stopping losses. Not adapted to technical corrections, because a small 'pawn' crossing the river is better than ten 'cars'.
7、 Sell during three consecutive bearish periods at high levels, buy during three red soldier periods at low levels
This is like the weather forecast that must be seen every day, with dark clouds on the overcast line and rainstorm coming; The three suns of the Yang line bring prosperity, and the sun shines brightly. The iron rule is that the market maker will use this scam line to wash the market or relay the decline, and should identify it based on the basic information of the individual stock.
8、 Stocks that go against the trend during a major market crash
This is undoubtedly like swimming at the beach, only when the tide recedes can one see who is swimming naked. There are two possibilities for the naked person: one is wearing an expensive "invisibility cloak"; One is that they really don't have money to buy underwear. The iron rule is that a bullish trend against the market may be supported by large funds, leading to a significant increase in the future market; It is also possible that the market makers are luring more people to lend, and the key is to see if they can make up for the decline.
9、 Dare to buy stocks on the daily limit up board
The reason why chasing the daily limit up is called a daring team is because it requires courage and risk-taking. This is like rock climbing with bare hands, very dangerous, stepping on it with one foot will result in free fall. When you climb the mountain peak, you will see that the mountains are small and your wealth will increase rapidly. Because as long as the limit up is blocked, there will be more limit up afterwards. The iron rule is to never let go before the consecutive limit up is opened, as letting go will undo all previous efforts.
10、 Buy stocks with limit down opened by a large amount
Massive limit down, quickly lifted by large orders, should not hesitate to advance. It's like watching fireworks in the night sky, first turning green to red, and then soaring into the sky. Under huge amounts, it is generally possible to go from the limit down to the limit up, with 20% of the gains on the same day. Iron laws are beautiful fireworks that quickly turn into smoke and clouds, and are immediately sold out when bidding the next day.
In a bear market, short-term stock trading should pay special attention to the following two points:
1、 Set strict take profit and stop loss points
There is a saying in the investment industry: those who can buy land are masters, those who can sell are masters. Why is it called a strict take profit and stop loss point? Because many retail investors set their own take profit and stop loss points in a timely manner, but they still forget this rule in practice. In a market that is influenced by countless variables and cannot find a definite pattern in the short term, it is particularly important for investors to determine their own take profit and stop loss level.
2、 To be 'stable', 'accurate', and 'ruthless'
'Stability' means having a stable and positive mindset, and not letting one's emotions disrupt one's operational thinking; 'Accurate' means preparing the precise point for buying and selling; 'Harsh' means both timely intervention and decisive exit for profit. Only in this way can one reduce operational risks and thus gain profits.