Principles and practical skills that must be adhered to in short-term operations

1. Emphasize power over price

Short term trading requires close attention to trends, including both overall market trends and individual stock trends, and there is no need to overly focus on stock prices. That is to say, even if a stock has already risen very high, if the potential analysis shows that it still has the ability to continue to rise, short-term investors can still buy it; On the contrary, even low-priced stocks have no short-term investment value if they do not have an upward trend.

There is a rule in the Chinese stock market that 'the strong always remain strong, and the weak always remain weak'. The reason why some stocks can continue to rise is that the 'stock price rise' itself has already activated the stock nature of the stock. The reason why other stocks do not rise is precisely because their stock nature is stagnant, and they require huge trading volume to drive stock prices. Going against the trend "is a major forbidden zone for short-term investment. It is a standard" suicide "behavior to try to rebound in the short term when the overall trend is declining, or to try to rebound when a stock turns downwards from an overbought state.