The K-line chart has 60 minute, daily, weekly, and monthly lines, all of which look similar, but the difference lies in the fluctuation amplitude. The 60 minute line is an ultra short term, with a cycle of low and high around 4 days; The daily chart is short-term, with a cycle of about 9 days; The weekly chart is a band of about 3 months; The monthly line is longer.

Short term and band analysis, if purely technical analysis, have different analysis methods.

01

The analysis method for daily and weekly candlesticks is the same. So, are short-term and short-term trading the same? Short term trading leaves us less time for thinking and more time to determine the direction of stock price movements in the market. Is short-term trading better than wave trading? Short term is more susceptible to fund manipulation, but the losses caused by non systematic risks will be greater.

If you are doing trend trading, a market fluctuation in a band may be between 300-600 points, while stop loss may require 50-80 points, so investors can have enough time to operate. If it is a short-term market, with a short-term trend at 50 points, what about stop loss? What should I do if there is a 50 point change in non systematic risk? How to set the profit and loss ratio? Perhaps I don't quite believe in so-called feelings. No operation can be based on too much subjectivity, and short-term trading is precisely based on a large amount of subjective inference, that is, feelings. If you can rely on trends to make money, don't force yourself to learn short-term skills, after all, making money is the goal, investment is not entertainment.

02

Short term trading costs are high, but the potential losses are limited and the mental burden is small.

Band trading has low costs, but making mistakes comes at a high cost. Being mentally anxious for a long time makes it easier to make mistakes. Short term trading is difficult to do well compared to market trends, and can only be based on market sentiment. Sufficient practical experience is needed. Experienced people are better at short-term trading than short-term trading.

Short term trading is bound to be frequent, with a high probability of accepting probability choices, a high error rate, and a high number of errors, including stop loss and short selling, cumulative stop loss, and loss accumulation. These are the fate gates of short-term trading. Generally, investors in the market have less worries, fewer opportunities for mistakes, and lower commissions, but it is very likely that their profits will also be low; And an investor who engages in short-term market trading will have higher commissions, more tasks, and more troubles, but has the opportunity to gain more profits.

Short term trading requires certain conditions: strong energy and constant attention to the screen; Good disk feel; Be brave to frequently cut losses; The handling fee is low enough and the runway is smooth, suitable for small and medium-sized funds. Large funds are limited by market liquidity and have little significance, but the conditions are very strict.

Band operation requires the ability to judge the overall trend, calculate profit and loss ratios, and search for entry and exit points in the short term.

03

The commonality between the two is that they both require following the trend, but the band follows the trend while the short-term trend follows the trend. Based on my long-term experience, it is advisable for beginners to work on bands, with short-term bands in the highest level of the wave, but it requires extremely high skills, which will be discussed later when mature.

How To Pick A Stock

For small and medium-sized retail investors, investing is for the purpose of increasing value and preserving value. In addition to preventing risks, it is crucial to choose investment products that are suitable for oneself to increase value and preserve value.

Some people like short-term speculation, only hoping to see a price difference in one or two days. Buying today is for selling tomorrow; Bear blind eats corn and throws half away. For these people, whether the stock performs well or poorly is not important, and even whether the stock is a defensive variety is not important. What is important is that the purchased stock must experience expected fluctuations in the short term, that is, to achieve the goal of buying low and selling high in the short term, hoping to accumulate high profit expectations for the whole year through short-term small profits. This type of person's investment analysis mainly relies on short-term technical analysis as a means. In reality, there are indeed some people who have achieved the goal of accumulating profits and outperforming the market through short-term speculation. This type of person usually appears in the group of individual investors who specialize in short-term stock trading. However, short-term speculation must have the corresponding time, conditions, and ability at the same time, as it is not something that most people can achieve.

Mature investors implement cyclical investments and hold stocks when the stock market rises periodically; When the stock market undergoes a periodic adjustment, reduce holdings of stocks or take short positions. This type of investor is more suitable for following the footsteps of institutional investors and should choose investment products in accordance with institutional investors.

Some people who have no free time or investment experience can earn interest income greater than their savings based solely on their one-year investment returns. These types of investors are suitable for purchasing closed-end funds. In a bull market, most closed-end funds can achieve returns that are not inferior to the overall market.

In summary, the selection of investment strategies and investment varieties must be adapted to your own conditions and needs, otherwise it will result in mistakes or losses. For example, some people are not suitable for short-term speculation but insist on doing it, resulting in losses in a bull market. I thought that different types of investors vary from person to person: what is suitable is the best.