As important participants in stock trading, retail investors are rarely able to make big money in the stock market due to their limited knowledge, energy, and financial resources. However, as amateur stock traders, mastering some stock trading skills is beneficial and harmless to oneself. Due to the requirement of fast in and fast out for short-term investment, which requires certain knowledge and experience, investors also want to know what short-term stock trading techniques retail investors have.
What are the short-term stock trading techniques for retail investors
1、 Investment philosophy:
1. Maintain a stable mindset: When operating in the stock market, it is important to set a stop loss level and avoid being too greedy, which can lead to a rollercoaster ride.
2. Put risk first, that is, prioritize financial security. Control your position, buy in batches, and engage in short-term operations.
3. For retail investors, it is not suitable for long-term investment in the stock market now, and they can engage in band trading.
2、 Stock selection techniques:
1. Select the stocks that the main focus has been on recently;
2. Stocks receive support above the five-day moving average. The trading volume shows a moderate upward trend, and it is best to gradually increase the volume;
3. When selecting stocks, one can avoid being fixated on the company's fundamentals and track institutional fund purchases, with the inflow of large funds as an important criterion for reference;
4. When selecting stocks, choose stocks in the small and medium-sized board sector.
3、 Specific trading strategy:
1. Short term trading requires buying in batches to reduce costs.
2. Control your position well, buy at very low positions, engage in short-term operations, buy in batches every day, and exit on the second day of profitability.
3. Set stop loss and take profit levels, and follow discipline once the target is reached.
4. In terms of risk control, the main focus is on controlling stock positions. For individual stocks, buying can be done in batches and time periods. For example, if you plan to buy 10000 shares of a certain stock, you can buy 1000 shares in different time periods on the same day, or buy 1000 shares in batches. If it is found that the main force is selling, stop adding positions and effectively control the position.
5. Because we are doing short-term trading, we tend to choose stocks with high volume in recent days when selecting stocks ahead.
6. In terms of buying time, it is generally not advisable to open too many positions in the morning, and it is safer to reduce positions in the afternoon, preferably at the end of the day.