What are the methods for short-term stock selection?

Check the trading volume

The trading volume should not be limited to just one day. It is best to see a synchronous increase in trading volume for several consecutive days, with an increase in volume and price (not a decrease in volume). Although the stock price may also rise synchronously, as long as it is confirmed that a market maker has entered, buying a slightly higher strong stock is not a problem. The market maker is still at this position to attract funds, and this type is our preferred choice.

Observe the upward trend

It must be an upward trend. Short term stock selection must choose stocks that are in an upward trend, that is, stocks with long moving averages. The 5-day, 10 day, 20 day, and even the stocks that dare to set new highs are the standards for strong stocks.

Technical Form Stock Selection

When it comes to selecting stocks based on technological forms, there are many options, and here are a few of them:

(1) Platform breakthrough

Platform breakthrough refers to a stock that, after a long period of sideways trading, suddenly increases in volume on a certain day, breaking through all the high points of the sideways stage and freeing everyone. This is a technological breakthrough that can be followed up in a timely manner. As the saying goes, how long is the horizontal and how high is the vertical, that's the truth.

A platform breakthrough is accompanied by an increase in trading volume, and it is best to buy at the moment of the breakthrough. Even if you cannot buy on the first day, you can still follow up the next day.

(2) Old Duck Head Breakthrough

The old duck head is a special shape, and the K-line shape looks like a duck head. This is a shape that has been washed and broken through.

Some individual stocks, after the market makers have bought up their chips, do not immediately rise, but go through market washing to knock out individual investors. If you have tracked the stock, you can buy at the "duck neck" position, which is the lowest point of the washout. But even if you don't have the ability to buy at the lowest point, it doesn't matter. When the stock finishes washing up and breaks through, you can still follow up in a timely manner. That is to say, the old duck head broke through.

(3) Head, shoulder, and bottom breakthrough

Head shoulder bottom is a bottom shape, with the K-line pattern consisting of left shoulder, right shoulder, and head. The head of the bottom shape is located below, which is the lowest point. The short-term principle is to buy on the right shoulder at the bottom of the head and shoulders, at the moment of breakthrough.

You need to know the Crocodile Law

The so-called crocodile rule refers to: assuming a crocodile bites your foot, if you try to break free from your foot with your arm, its mouth will bite both your foot and arm at the same time. The more you struggle, the deeper you sink in. So, if a crocodile bites your foot, remember: your only chance of survival is to sacrifice one foot. All successful stock traders in the world must learn and deeply understand this principle before entering the stock market.