1. Do short-term trading when the overall trend is active. When the overall trading trend is active, the trading volume is large, and there is a significant increase in individual stocks and a large number of individual stocks hitting the limit up, it is often easy to engage in short-term trading. Especially when a hot topic sector has a leader, you can seize the leader and do something about it.

2. Don't chase strong stocks when the overall trend is declining. But investors should start actively selecting stocks to lay the foundation for timely participation in speculation when the market stabilizes in the future. At this time, it is important to focus on selecting individual stocks that have experienced a significant decline in stock prices but are able to lead the market in stabilizing and stopping the decline, and list them as the focus of attention.

3. When the overall market stabilizes and stops falling, it is necessary to conduct a re evaluation of the selected stocks and select those that can successfully build a small bottom pattern in terms of form. The stabilization time of individual stocks is significantly longer than that of the overall market, and after a successful bottoming out, the trend of individual stocks should have a certain degree of independence.

4. Don't use all your funds for short-term trading. It is advisable to divide the funds for short-term trading into three parts, and those who are confident can invest two parts in one stock, especially stocks that have risen to the limit strongly. The limit up indicates that everyone is willing to buy at a higher price, which itself represents a strong desire to rise. The stock price naturally has strong support at the limit up price.

5. Buy when the technical indicators are adjusted properly. The most important technical indicators are KDJ and OVB. If KDJ reaches a bottom, especially when the J value becomes negative and forms a W-shaped upward trend, accompanied by an increase in OBV (trading volume), it can intervene decisively.

6. Short term trading is aimed at making quick profits, and both being unable to make profits and not being able to make quick profits are contrary to the purpose. Therefore, it is important to get rid of this trade as soon as possible.

7. It is necessary to set a stop loss point. Grab short-term strong stocks, sell them as soon as the short-term rise ends, and stop losing at the lowest price the day before buying, with a maximum loss of 10%. The recommended stop loss point is generally 5%.

8. Everyone makes mistakes, even if you follow all the rules mentioned above. Once your actions do not match or even violate the expected purpose, it indicates that you are wrong. Since you are wrong, withdraw from this transaction without any financial impact, especially without the concept of adding low positions and spreading low costs. This will lead to you refusing to admit your mistake, getting stuck in the mud, and ultimately suffering from mental and financial torment.