These are the tricks for short-term stocks

Chapter 2 Preparations for short-term trading (2)
It is not possible to conduct short-term trading at any time. It can only be operated when the following three situations occur in the market:

①The market is at the end of the bull market. At this time, some main players are still very active, and a large amount of funds dare to enter and exit frequently, but we must pay attention to preventing the market from plummeting.

②The market is in a period of horizontal consolidation. At this time, various main forces have the opportunity to try to pull up, and various funds are often in a state of restlessness.

③In a bear market, when the market is in a sharp drop (such as a continuous drop of more than 20%) or a sharp drop (such as a sharp drop of 8% in one day), it is often an opportunity for all kinds of hot money to grab a rebound.

Except for these three types, short-term trading is not allowed when the market is in the rising stage of the bull market, or when the market is in a clear downward channel.Because the former is not cost-effective, and the latter is easy to lose money.

2. Requirements for the market
Even if the market is in a market environment where short-term trading is possible, short-term trading is not possible every day. When the market atmosphere is bad and there is not enough follow-up, even the main force cannot protect itself, and it is even more difficult to make profits by following the trend.Only when the market environment has the following three situations can the success rate of short-term trading be improved:

①It is extremely important to be able to see the substantive benefits of the policy and news. This is extremely important when the market is in a consolidation or bear market. Once the policy is favorable, the rebound of individual stocks will begin immediately.

② To be able to see the collective start of a certain sector, this is the result of the joint rise of large funds, indicating that the hot spots are concentrated in a certain sector, and a large amount of funds poured into a certain sector, and the risk of follow-up is relatively small.

③It is necessary to be able to see that a certain stock suddenly has a major benefit in the fundamentals, which is often the root cause of the short-term runaway of the individual stock. Although it is not possible to participate in time, there are still some opportunities in the later stage.

When the environment for market start is not available, short-term trading is often good-looking but not useful.So sometimes, waiting is making money, because it saves the money lost, and at the same time wins the initiative of funds, keeping the opportunity to wait for the opportunity at any time.

3. Requirements for individual stocks
When the market is in a market environment where short-term trading is possible, the success of short-term trading is closely related to the status of individual stocks.From the technical perspective of individual stocks, the timing of short-term trading mainly includes:

① When the stock price breaks through the old highs and hits new highs after a long period of consolidation (the end of the bull market and the shock market in it);

②When the stock price breaks through the key resistance level and is about to rise sharply (at the end of the bull market and the shock market in it);

③When the stock price is about to explosively break through the consolidation platform at the recent bottom (the bear market rebound period and the shock market in it);
④ When the stock price is running in an obvious upward trend channel and is supported at the lower rail of the channel (bear market rebound period and shock market);
⑤When the stock price forms a clear box trend, and there is a regular phenomenon of buying low and selling high (bear market rebound period and shock market);

⑥When the stock price forms a clear downward trend and triggers a strong rebound due to excessive decline (bear market rebound period and shock market);
⑦When the stock price rises first and then falls at the bottom and shrinks and starts to rise explosively (bear market rebound period and shock market).

Among them, 4 and 5 also belong to the status of individual stocks that can be used for swing trading.Such stocks are often not limited by the concept of the market and the market, and are basically controlled by the main force. It is difficult to skyrocket, but they will rise slowly.Be patient when intervening in such stocks.

For specific target stocks, short-term short-term masters should neither participate in the adjustment of individual stocks during the rise, nor let go of the pull-up during the adjustment of individual stocks. This is the basic principle of short-term operations.Therefore, when the adjustment of good varieties is completed, it is necessary to kill the carbine in time.Note that successful short-term trading is not just buying stocks that can rise, but buying stocks that have risen the most in a short period of time.

The 8th trick to build your own trading operating system

"I can give you the best rules in the world, and the best method for judging the position of stocks, but you will still lose money in your account because of the human element, which is your greatest weakness. You failed to follow the rules, you Acting on hopes and fears instead of deeds. You hesitate, you lose patience, you act hastily, and you delay your timing. You therefore deceive yourself with your human weaknesses and blame the market for your losses. Always remember, it's yours Mistakes, not the actions of the market, or the actions of market manipulators, caused your losses. Therefore, you should try to abide by the rules, or avoid speculation that is doomed to fail you." This is the generation of stock trading master Gann left decades ago It profoundly reveals the influence of trading psychology and trading rules on the success or failure of trading.

If market analysis is the analysis of objective events by short-term masters, then the trading ability of short-term masters will undoubtedly become the subjective factor that determines the success or failure of transactions.Many short-term masters regard market analysis as very important and spend a lot of time and energy on it, but in fact, this is a secondary part.Because the market is "dead" and passive, while people, the trading subject, are alive and unpredictable.That is to say, in the stock market, it is not enough to just look right, but to do it right; and to do it right depends on the trading operating system of short-term masters.

In the trading operating system, trading quality is the most important part, which includes trading ideas, trading concepts, trading psychology, etc. These "live" things are the most difficult to identify and control, but they seriously hinder the identification ability and ability of short-term masters. The level of trading makes short-term experts view the market subjectively and trade at will, sowing the bane of losses; trading rules include trading strategies, trading methods and trading disciplines, which are a sublimation of experience and an operating system for rational trading. A correct operating system, erratic or opportunistic profit-making methods will only make short-term masters fall into a more passive position; fund management includes fund position management and fund risk management, different fund investment methods and exit and entry skills will As a result, short-term masters who are also optimistic have a huge income gap.

At the same time, most short-term masters regard trading as a single entry behavior, thinking that as long as the entry is correct, they will be able to make profits, and they rely too much on the entry link in the entire transaction process, while ignoring other related links in the transaction process .They don't have their own trading system, and they can't completely treat their entire trading process, and they don't even know how many links in the transaction need to be grasped.Take a look at the table below, short-term masters will know how the losers are produced:

Correct trading system:
Questions to Consider When Trading

scientific solution

1
What kind to buy?
According to their own consistent stock selection criteria to determine

2
When to buy?
Determined based on the analysis of the market, sectors, and individual stocks
3
How much to buy?
Determine according to your own warehouse management standards
4
how to buy?
Buy in turn according to your consistent style of building positions
5
What should I do if the trend reverses after entering the market?
Exit the market quickly according to the stop loss point set in advance

6
What should I do if the trend is good after entering the market?
Increase positions sequentially according to your own increase standards

7
When to lighten up?
Execute according to your usual take-profit conditions

8
How much to lighten up?

Execute according to your usual stop profit standard

9
When will you leave?
Execute according to your usual exit conditions

10
What should I do if I cannot leave due to an accident?
Calmly deal with it according to your second set of measures. Generally speaking, if short-term masters want to continue to make profits in the market, they must establish a three-in-one trading system:

Technical Analysis Module: This is a forecasting system for trading objects and timing, focusing on what to buy and when to buy and sell.It includes the analysis of the broader market, the analysis of the quality of individual stocks, the analysis of the technical aspects of individual stocks, and the analysis of the main force of individual stocks.Here, the most important thing is to understand the market objectively and comprehensively.

Trading Behavior Module: This is a system for managing the entire trading behavior of short-term masters, focusing on the research on how to better implement buying and selling behaviors.Including the psychological control of short-term masters, the implementation of trading strategies, the execution of trading rules and so on.Here, the most important thing is to adhere to the principles of integrity and consistency.

Fund management module: This is a system for managing the security of funds and the value-added process, focusing on the issue of how much to buy and sell.This involves the proportion of capital in and out each time, as well as the control of risks and the protection of profits.Here, it is important to adhere to the principles of reason and prudence.

The 9th trick to avoid the 15 major psychological misunderstandings

Stones from other mountains can be used to attack jade, and short-term masters can first save trading tuition fees from other people's mistakes, so as to enter the good trading environment smoothly.Next, let's look at other people's mistakes first.

[-]. Fifteen major psychological misunderstandings
1.Think you can get rich overnight

Many short-term masters are not interested in stocks and know nothing about them, but when the wealth effect of the bull market is increasing day by day, under the temptation of a skyrocketing 0% or even 100% in one day (new stock listing, resumption of trading, warrant trading), But rushing into the stock market with the mentality of getting rich overnight, the result can be imagined.Don’t do it if you’re not familiar with it, don’t do it if you don’t understand it—this basic common sense of business has been repeatedly broken by short-term masters in the field of investment or speculation, but ignorance and impulsiveness always have to pay a price.

2.think it's easy to make money
There are rumors in the stock market that parents and mothers can also become millionaires, and it also describes the legend that funds can help you "wait for the rabbit". Therefore, many short-term experts who think they are smart, and many short-term experts who do not think about how to make money at all, began to pour into the stock market .The stock market began to rise from this, but the tide always ebbs. When the tide ebbs, the short-term masters who get something for nothing and think smart will naturally become the group of "no pants" people.These short-term masters need to think about it, why do others lose money to you?
3.Think stock trading is gambling

Short-term masters with such a mentality often will not admit it, and often even deceive themselves.Stock trading itself is also a game, and it has certain similarities and connections with gambling, but there are still essential differences between the two.Gambling can change cards, but the stocks of both parties cannot be replaced; gambling relies on identification experience and coping skills, while stock trading relies on grasping the relationship between supply and demand of stocks and the hot and cold market.Those who regard stock trading as a gamble will inevitably violate the laws of the market in their gambling nature and behavior, which will lead to failure.

4.quick success
When a person raises their salary, they only hope to be satisfied with an increase of 5% a year; when doing business, they are satisfied as long as they can earn 50% a year, but when they enter the stock market, they hope to earn more than 00% , how unrealistic it is.Just as it is impossible for us to become a doctor or a lawyer within two years, if we want to succeed in a field, especially in a game field where masters gather, we must put in arduous efforts and at the same time, we need perseverance.Obviously, most short-term masters have no such mental preparation.

5.rely on others

The stock market is affected by many complicated factors. When short-term masters are unable or unwilling to analyze, they will inevitably adopt the strategy of following the transaction. This is also quite common in fund companies.Short-term masters who blindly follow the trend and rely on others will rush to buy stocks that they don't understand when they see others buying a certain stock; and when they see others selling a certain stock, they will also rush to sell it ; They are always inquiring about gossip and following rumors, until they are quickly swallowed by the market and regret it.

6.indecisive

Some short-term masters originally made a trading plan before entering the market, but when they were influenced by other people's opinions, they often looked left and right and could not execute the trading strategy; When entering the market, they can’t stand the temptation of this atmosphere, so they make irrational trading decisions; or they are simply in a state of uncertainty, vying for opportunities to miss themselves, falling into the situation of not getting what should be won, and what should not be lost. but lost the embarrassing situation.

7.free and easy

Human behavior is very random and self-initiated, so society must use laws and regulations to restrain and coordinate.However, in the stock market, short-term masters tend to act alone without leadership supervision and self-discipline, and their usual freedom and willfulness can be seen at a glance.In the face of opponents who can create market and have strict discipline, the losses caused by this kind of emotional trading and casual trading are often huge.One can imagine the consequences of facing the mysterious, unpredictable and turbulent stock market with natural humanity.

8.dare not lose
Many short-term masters have no confidence in holding stocks because they know nothing about the market. Once the stocks fall, they start to feel restless, and if they continue to fall, they will be in panic all day long.They cling to the stocks that have already lost money, hoping for a miracle that the market will reverse.They don't understand the meaning of the retreat of the main force and the collapse of popularity, they don't understand the cyclicality of the market and stocks, and they don't understand the importance of free capital.The mentality of not daring to lose will only make short-term masters sink deeper and deeper, and lose more and better trading opportunities.

9.dare to lose dare not win
Some short-term masters are just the opposite of the above short-term masters. They dare to cut out their positions, even if they lose consecutive battles, and they claim to be well versed in the way of "stop loss". However, when they see the long-lost profit , but often can't wait to take a profit, for fear that the profit at hand will disappear. Therefore, it is often the case that ten transactions lose seven times, draw twice, and the only one that can make a profit is sold very early. Get out. The mentality of daring to lose but not to win will gradually wipe out all the funds in the account of short-term masters.

10.Dodge responsibility

After making money in the stock market, many short-term masters start to look happy, get carried away, and show off everywhere; when encountering setbacks and difficulties, they feel restless, frowning, and complaining.This kind of short-term master often cannot see the laws of the market, nor can he see his own problems, let alone actively seek solutions, but blindly blame the market, management, market makers, stock commentators, etc. for the failure. Wait.Winning money is your own ability, and losing money is a problem with the market. This kind of thinking is really naive.

11.greedy

This kind of greedy speculator is not uncommon.They often hold stocks waiting to rise, blindly persist regardless of the trend, and often give up opportunities to take profits time and time again; when the price falls, they are reluctant to buy, always hoping that the price will fall and then fall again.Although this is different from the form of chasing ups and downs, it is also a manifestation of short-term masters not being able to seize opportunities.This kind of endless desire, on the contrary, will make all the profits that have already been obtained come to nothing.You know, a tree cannot grow to the sky.

12.fear

As the saying goes: Once bitten by a snake, you will be afraid of well ropes for ten years.Some short-term masters can't stand the setbacks. They lose money in one transaction and feel fearful about the transaction, and they dare not intervene when they encounter a good opportunity; Fearing that the top is coming and getting out early, missing opportunities to increase positions in callbacks again and again; or fearing the cruelty of the bear market, turning a blind eye to the coming of multiple rebounds or reversal opportunities, in short, it is easy to "not enter the oil and salt".

13.superstitious

Superstition is often caused by insufficient knowledge, including: superstitious books, especially those one-sided experiences; Paper tigers; superstitious funds, in fact, fund companies rely on the support of superstitious people to survive until today; superstitious indicators, in fact, indicators only have a statistical effect; superstitious news, those who are keen on news often die of news; Lose the market.

14.Lazy

Laziness is a common problem of human beings.Some ordinary employees who enter the stock market are doing nothing at work, but expect to be lucky in the Yin market; After spending time and drinking, he fancied that his luck was better than that of Einstein and Churchill who bought stocks back then.They don't seem to know that their money is about to be taken away by short-term masters who are a hundred times more diligent than them.It's fair to be ignorant because of laziness, and lose money because of ignorance.

15.Refuse to admit mistakes

Once many short-term masters go in the wrong direction, they can't make a decisive decision and cut their wrists; instead, they are lucky and hope that the market will turn around according to his imagination; or they can find various reasons for themselves that the market should turn back, and they have no mistakes; Blindly optimistic, fight to the end, don't look back until you hit the south wall; or pretend to turn a blind eye, indifferent, and feel good about yourself.But no matter what the short-term masters think, a mistake is a mistake. If you still want to survive in this market, the only way is to admit your mistakes and correct them immediately.

The 10th way to avoid the 15 major trading mistakes

1.no trading plan

When the vast majority of short-term masters enter the stock market, they don't know how to make a trading plan, which makes them unable to know how much reasonable capital should be in the market; when the market outlook appears, whether they should increase or decrease positions, increase or decrease What is the ratio; where to set a stop loss to close the position; where to set a stop win to take a profit.In the face of the main market forces who are always planned, purposeful, and disciplined, their failure has become inevitable.They don't know that the market specializes in fixing those who trade at will.

2.unsystematic transactions

This includes two common situations: one is to trade according to news, that is, short-term masters look for gossip everywhere to trade, instead of trading according to market laws and individual stock characteristics. Exploring the west; the other is to trade according to expectations, that is, to take actions in the belief that the market will go, not to follow the trend.Gann has two sets of technologies, one is market testing technology and the other is operating rules. Obviously, market testing technology alone will not work.

(End of this chapter)