What exactly is short-term trading?
Short-term trading refers to trading in which investors buy and sell within a short period of time to earn a spread.
Short-term trading refers to trading behavior where the position is held for less than or equal to 20 trading days. According to this standard, short-term trading can also be subdivided into two-day trading, weekly trading, two-week trading, etc.
The selection of stocks for two-day trading is highly speculative. The risk of selecting these stocks is much higher than in general stock trading.
Weekly trading is actually a modification of two-day trading and is often preferred, with the advantage that profits can grow more comfortably.
Monthly trading is the longest trading unit in short-term trading. If you want to make 30% profit in a 6-month uptrend, then you must strive to make 10% or more profit each month, which is the most basic requirement for monthly trading. Monthly trading strictly follows the 20-day or 18-day benchmark cycle trading method. It ignores the price fluctuations below the week. The stop-loss price is set in the last buy position below the 5% level. The purpose of doing so is to avoid being the market will clean out in advance.
The purpose of short-term trading is to make full use of capital efficiency to maximize profits by the pursuit of capital efficiency. This is the fundamental purpose of short-term trading because we are engaging in long-term stock speculation and not (or never) to win the company that the stock represents and share the profits that the company may bring.
The key to profitable short-term trading is to first determine the underlying trend of the stock and the best time to buy it. If an established trend starts to move up and the time period is at the bottom, then our short-term trading begins. At this time, we can temporarily leave the daily chart and pursue the market clues revealed by the short-term chart.
(B) Short-term speculative strategies
What strategy should an investor adopt for trading? Before entering the market to officially start the actual operation, we must first position ourselves in the market to play what role, because any buying and selling behavior not adjusted according to the trend of the investment strategy is stupid and may lead to frustrating failure.
Many investors in the real world do not know what they are doing when they speculate or whether they are capable of speculative operations. Speculative operations are more specific in terms of short-term operations than frequent or random buying and selling. Many people like short-term trading, but for short-term operations, they need to have certain conditions suitable for when to start. Short-term operations have certain advantages and practical constraints that are not very clear.
Below, we briefly analyze the short-term operation.
Short-term operation refers to the use of the strong upward trend of the stock price and a rising stage of operation through the rapid turnover of funds, which always puts the funds in the stock with rapid upward potential.
One short-term operation needs to have the conditions.
(1) A one-in-a-million short-term master must go through a thousand refinements of the actual battle. Short-term trading requires investors to have a wealth of experience in real-world operations, deep technical skills to see the plate, and non-three or five years of continuous scientific and brutal training. Don’t say lightly that you have become a short-term master.
(2) the general market and the target stock’s short-term trend analysis and forecasting with a high degree of accuracy, which is the premise.
(3) the market hot spots, plate rotation has a keen insight into the market, the rapid fluctuations in individual stocks, the first time to catch up.
(4) have patience, calm, decisive, bold, quick-response psychological qualities.
(5) familiar with the stock price structure, the operation of the fine grasp of the entry and exit points at a relatively high level.
(6) the implementation of operational discipline to have a strong determination, courage, and determination, risk control ability is very strong.
(7) must frequently wait for the arrival of opportunities to fill empty positions, operating in and out of the rapids, in order to have a chance to win the realm.
(8) Regardless of profit or loss, maintain a calm and stable mentality so that victory is not taken for granted and defeat is not discouraged.
2 short-term operations suitable for when to start
The stock price is rising, but the increase is not large; the average system is obviously a multi-headed arrangement, with a daily turnover rate of 3% or so. If you find such a stock, you can wait for its drawdown to the 5-day average when buying it.
(2) When the market falls sharply, the volume is increased by the counter-trend rise of individual stocks that are up more than 5%, as such stocks breed better short-term opportunities.The so-called “fall is not down, should be bullish” can be closed on the day or the next day to buy on the pullback.
(3) some stocks after a sharp increase in volume and a sharp drop in the volume of the market, you can grab the rebound when the fall is 0.5 times.
3: The Benefits of Short-Term Operations
To maximize the utilization of funds, we (1) chase the trend of rising stock prices with concentrated stock selection and heavy participation.
(2) timely chase hotspots, turning in the strongest stocks from which the greatest gains are madeFor example, in 2007, finance, real estate stocks were hot, non-ferrous metals, and the coal industry, in a period of time, was also a hot spot. Those who actively participated in these hot spots had a lot of income.
But 2010 is not the same. Through the country’s macro-control of the real estate industry, banks, real estate, and other once-red hot plates were avoided. Some of the industries favored by the policy have become new hot spots. Such as the pharmaceutical industry, under the impetus of medical reform policy, pharmaceutical stocks have good performance.
4 short-term operation defects
Short-term operations are easier said than done, especially striking quickly, off-hand crisp and clear, to achieve the unity of knowledge and action. Therefore, the actual war constraints are also quite obvious.
(1) People who are greedy and indecisive are unsuitable for frequent short-term operations.
(2) Capital management is not well suited to large capital operations; rather, it is best suited to smaller capital participation.
(3) is not suitable for people who have little time to watch the market, such as office workers, to operate. Because the short term is more in the plate when the rapid fluctuations in stock prices give you enough time to make operational decisions, if there is not enough time to look at the plate, once the opportunity is missed, you will bear a greater risk of hedging.
(4) Because the operation cycle is very short, it is easy to lose the original ride on the big black horse. Therefore, the mind control is also very critical and cannot be regretted, affecting the normal operating mentality.
(5) Short-term operation is definitely not randomly chasing up, sometimes blindly chasing up high risk is also very large, should try to avoid the situation of the day was deeply set
Through the above analysis, investors should be able to determine whether they are suitable for regular short-term operations. A special reminder: if a short-term trading system is not established, perfect before the short-term operation often becomes a frequent chase up and down, it is easy to cause a large cumulative loss. In addition, according to the current state of the stock market, more than 90% of current stock market retail investors can’t do well with short-term operations, so investors should be very careful.
Likewise, for the conventional short-term and medium-term swing operations, investors also need to carry out a careful summary of their conditions, advantages and disadvantages, capital management, psychological control, and other aspects, to establish the corresponding perfect real-operation trading strategy.
(C) in the short term, several key points should be considered.
short-term customers to see the critical point of the strike and the following eight aspects worthy of attention.
(1) the size of the necklineStock volume attacks the technical pattern neckline level, if the attack volume has been effectively enlarged, but the breakthrough neckline level is still below 3% of the range, which is an excellent short-term buy point.
(2) the volume of the high’s upward movement.The stock is on the way up. When its volume cannot be continuously enlarged, it will be in a small price range for several consecutive days of volume accumulation to achieve more than the previous high point of the maximum amount of purpose, the formation of the peak of the most gradually decreasing persistent upward channel, and just by the parallel upward 13, 34, and 55-day average system of strong support. The lower line of the channel, which also happens to be the 13-day moving average of the zero deviation position, is a short-medium-term excellent entry point.
(3) Onion pulling on dry land when the rebound or reversal of the first positive is a stop board or more than 9 points after a continuous decline or retracement, the market often has more than LO% of the upside. The first positive line near the stop price is an excellent entry point into the position.
Such as Shenyang machine tool ( 000410) in October 27 and 28, 2009 continuous decline, the lowest share price fell to 8. 17 yuan, the 29th the stock suddenly power, a seal on the stop, and then sealed two consecutive stops, from then on out of the upmarket. To April 14, 2010, the stock hit a new stage high of 16.10 yuan, an increase of 97%. As shown in Figure 2
(4) A small amount of positive volume is lagging behind.When the stock continues to move upward, only to close with a small positive, which is a strong upward attack, performance is blocked. After the accumulation of momentum, there will be a wave to continue to attack the opportunity to innovate. After the release of the shrinkage retracement, there will be an excellent short-term entry into the position.
Over ten thousand mountains, there are five light boats.Stocks from a stage low, in the case of a cumulative increase, with less than 3% of the rate of change effectively breaking through and stabilizing the annual line (233-day moving average), back to the position of the annual line, is an excellent point of entry in the short term.
(6) the conclusion of a short, powerful crossbow.out of the 13, 34, or 55-day moving average, there is a rapid succession of downwards. When the stock price of the 13-day moving average has a negative deviation of about 20% (except for the decline of the banker and problem stocks), it is an excellent short-term entry into the position.
(7) Short-take cover. If a stock is in the moving average of the counter-pressure of a rapid decline, with the fall near the lowest point, the rise and pull appear, the more the volume of the decline is magnified, the more the decline is smaller and smaller negative. When there is a shrinkage of the positive line over the last fall, it is also the largest volume of the negative entity. The highest point near the shrinkage of the positive line is an excellent entry point into the position.
(8) Gold purchasing pointStocks from the lowest point in the medium term in a series of positive (up to 1-2 small negative) uninterrupted rises, when the cumulative increase of more than 30% after the top, with a continuous negative fall to the first wave of 0.382, 0.5, or 0.618 golden mean, is an excellent short-term position, you can buy in batches of bold.