Four essential tips for short-term stock selection and practical skills

Short term trading is a game for stock market experts, requiring a strong foundation in stock market knowledge, familiarity with market manipulation techniques, good psychological resilience, and most importantly, having time to constantly monitor every move of market makers. The key to short-term stock selection lies in hotspots, and investors must have a keen insight into the formation of hotspots. Short term stock selection should pay attention to the following three aspects:

  1、 Transaction volume.The stock proverb goes, 'Quantity leads price.' Quantity is the forerunner of price, and the rise in stock price must be accompanied by quantity. The increase in trading volume means an increase in turnover rate, an increase in average holding cost, and a reduction in upper range selling pressure, which is why stock prices continue to rise. Sometimes, when the banker's chips are well locked in, the stock price may also shrink and rise, but the situation of shrinking and rising will not last long, otherwise the average holding cost cannot be increased, the selling pressure increases significantly, and the stock lacks sustained upward momentum. Therefore, short-term operations must choose stocks with high volume, especially paying attention to stocks with high volume at the bottom.

  2、 Graphics.Short term trading should not only pay high attention to trading volume, but also pay attention to changes in graphics. There are several graphics worth paying close attention to: W-bottom, head and shoulder bottom. Arc bottom, platform, ascending channel, etc. When the volume of W bottom, head and shoulder bottom, and arc bottom breaks through the neck line, it should be the buying opportunity. There are two points that must be highly noted here. Firstly, it is necessary to break through with a large volume in order to make an effective breakthrough. A breakthrough without trading volume coordination is a false breakthrough, and the stock price often quickly returns to the starting level. Secondly, the reliability of breaking through at low prices is higher, and breaking through at high levels with large volume is likely to be a "bull trap" created by market makers, luring retail investors to follow the trend and achieve the goal of selling. Many times, when breaking through the neck line, there is often a pullback confirmation, which can also be a good opportunity to build a position; The stock price platform is consolidating, and the volatility is getting smaller and smaller, especially when closing at a low level with several crosses or small bullish lines, the stock price often chooses to break through upwards; Stocks that adopt an upward trend can be bought when the stock price hits the lower limit, especially when the lower limit is the 10 day or 30 day moving average, and sold when the stock price hits the upper limit. In addition, there is also flag shaped organization. The operation tips for organizing two important shapes in a box shape are similar to those for a W-shaped base, and will not be repeated here.

  3、 Technical indicators.

  4、 Moving average.