These are the tricks for short-term stocks

Chapter 3 Preparations for short-term trading (3)
3.frequent transactions

If a short-term master starts with a principal of 000 yuan and only conducts 20 transactions a year, all 0 transactions will be profitable with a winning rate of 8%, and there will be 0 total losses with a loss rate of 8%. In turn, the capital of short-term masters will be reduced to 938 yuan, not counting transaction costs.This is the price of frequent transactions.

4.Full warehouse operation

For a short-term master who has no concept of fund management or is eager to improve investment returns, he often chooses to operate with a full position, that is, to use all the funds when opening a position, and has no idea of ​​reducing the position when leaving the market, blindly filling in and out.Their reason is: if you are optimistic, you should go all out, and if you are not optimistic, you should withdraw immediately.But in fact, no one can accurately predict the development of the market outlook. Mispredictions and being deceived by the main force abound.And such short-term masters often don't understand that he should make money by compound interest rather than sudden profit.

5.no stop loss

Many short-term masters do not have the concept of active stop loss.The reason is that the psychological obstacle is mainly due to luck. Once the position is opened, no stop loss is set, and the price will move in the direction of the position. The technical obstacle is not knowing where to set the stop loss point. I think it is very troublesome; the obstacle in understanding is that if I think it is a big deal, I will hold on to it, "I will still be a good man after 20 years."As a result, most short-term masters eventually liquidated their positions after being seriously locked up, and a few short-term masters were forced to reduce the efficiency of capital use.

6.no take profit

Many short-term masters think, why set a stop win and let the profit run?But the actual result is: Too many short-term masters, instigated by greed, think that the tree will grow to the sky, and they are reluctant to climb down the ladder; they don't know the price of jumping until the main force pulls the ladder away. .In fact, the main force of all these trading psychology is very clear, how can it be possible for retail investors to have the opportunity to run ahead of them.As a result, the former profit has become paper wealth, and the constant lock-up has become a continuous nightmare.

7.Don't know money management

This includes two aspects.On the one hand, many short-term masters don’t know the difference in the operation of 0 yuan, 100 million yuan, and 1000 million yuan of funds, so they treat them equally and apply the same trading strategy, which eventually leads to failure; Understand the use and scheduling of funds, especially the lack of skills and experience in opening, increasing, reducing, and closing positions.You must know that even if you have the same expectations for the market, the final profit and loss gap between short-term masters who understand fund management and those who don't understand fund management is very large.

8.fall more and more recklessly
When the stock price falls layer by layer, some short-term masters usually have three situations.First, regardless of the occasion and time, "cut the meat" quickly, and the result may rise as soon as you cut it, and you will regret it; second, the more you fall, the more you increase your position, hoping to reduce the cost of holding positions, and at the same time think that you are holding high-quality stocks, ignoring the bear market Third, they think that the rebound is about to start, so they rush into the market to wait for the fruit of the rebound, but the result is that they often make mistakes and lose money when they make mistakes.

9.bucking the trend
There will always be many "dead longs" or "dead shorts" in the stock market. They ignore the changes in the market, stubbornly insist on outdated views, dare not enter the market when the market has quietly started, and do not dare to enter the market when it is finally crazy. Willing to get out of the market, continue to increase positions when the market enters a bear market, quickly buy bottoms when the market is obviously weak, and so on.These counter-market moves show the ignorance and incompetence of short-term masters in forecasting techniques, as well as the blind arrogance of thinking they have strong funds.You must know that the market has its own way, and no one can force its hands and feet.

10.too close to the market
Human beings are emotional animals, and it is inevitable that they will have emotional fluctuations with the rise and fall of the market, which in turn will affect trading behavior.If you are too close to the market, the original "greed, hatred, and ignorance" in human nature will easily emerge, which will make people want to "beat the market" in order to obtain profits that seem to be at your fingertips.But in fact, the waves in the stock market are like river water. The closer you are to the stock market, the only ripples you will see, and the ripples are chaotic, and one wave will be canceled by another wave.Only by keeping a distance from the market can short-term masters have the opportunity to pursue big waves of profit.

11.lack of discipline

Impatient short-term masters abound. When the opportunity is not clear, they rush in; when the market is adjusting, they rush out.Undisciplined short-term masters are everywhere, blind trading, impulsive trading, casual trading, confused trading... These short-term masters without discipline will eventually hand over their funds to the market for encroachment.They don't know that only a well-trained short-term master can save the day in the game market full of traps.

12.tired trading

Some short-term masters continue to "battle" on the front line of the stock market, watching and analyzing the market day and night;But they all continued to trade with fatigue.They don't know that the stock market is not a factory, and it doesn't need model workers, what it needs is efficiency.When short-term masters are physically and mentally exhausted, memory, reaction, perception, decision-making, coordination, sensitivity, etc. will all be reduced, and it is inevitable to make wrong trading actions.

13.Reluctant to make progress

Some short-term masters seem to be more diligent, looking for methods and learning experience everywhere, but in fact, they don’t want to think about the trading method by themselves, consider the cause and effect by themselves, but copy it mechanically and swallow it whole; or, after inventing a profit model, they don’t distinguish Use it repeatedly at the right time, thinking that you can do it once and for all, and everything will be fine.The reason why the stock market can continue to develop is because of its unpredictability and its vitality of self-verification and self-variation.Short-term masters who cannot keep up with the rhythm of the market will be eliminated by the market sooner or later.

14.no transaction style
It is difficult for every short-term master to win against his own personality, so every short-term master should form his own trading style based on his own personality and experience, including his own forecasting strategies and trading rules, as well as his own stock selection criteria and timing of entry and exit.Without your own trading style, it means you don't have your own opinions, and short-term masters who don't even have opinions cannot gain a foothold in the market.It is difficult for such a short-term master not to be swept away by the market storm, and it is also difficult not to die in the mysterious, turbulent and trap-filled securities market.

15.Self unstable
Short-term masters often know that the market is unstable and their risks are predictable, but the instability of short-term masters is often ignored by themselves.Such as the instability of the number of positions, the instability of fund management, the instability of preparation, the instability of operation, the instability of perspective, the instability of entry and exit, etc.These instabilities are unavoidable without losses even when the forecasts are correct, let alone when most of the forecasts turn out to be wrong.Self-instability factors are a fatal problem for short-term masters.

Tip 11 Make a trading plan
Learning to drive is easy, but becoming a professional racing driver is difficult.The same is true for stock trading. Becoming a professional trader is not easy.The first step is to learn to make a trading plan, which is the combat plan and implementation framework for short-term masters.The trading plan needs to consider all possible market developments and corresponding countermeasures in advance, which can reduce the pressure of short-term masters, increase confidence, and form self-disciplined standardized actions.Non-professional short-term masters do not have this set of plans. They are often unable to cope with market divergences or unexpected changes in the market, and thus lose in the hands of professional short-term masters.

The purpose of the trading plan is to find trading opportunities with a higher success rate on the premise of fully understanding the market conditions, and to ensure that the implementation process is under one's own consideration.Its formation process is as follows:
The first step is to identify whether the current market trend is a rise, consolidation or fall in the basic, secondary, and short-term trends.

The second step is to analyze the main factors that form the short-term trend of the current market, and collect later influencing factors to predict the trend.

The third step is to prove that the prediction may be correct and prepare to enter the market when the trend of the market starts to move in the direction favorable to your prediction.

The fourth step is to observe the correlation between the target stocks and the market trend, and select suitable target stocks for further analysis.

The fifth step is to select the target stocks according to the short-term, medium-term and long-term trading styles you are used to, and then consider when to enter and exit the market.

The sixth step is to analyze the three trends of rising, falling and falling that may occur in the later stage of the target stock, and prepare for corresponding operations and stop losses respectively.

The seventh step is to buy target stocks according to the established price range, time range, and stock quantity, and record the transaction log at the same time.

The eighth step is to keep observing at any time to see if there is any change in the target stock, and make further evaluations on the change and the weekend market.

The ninth step is to consider whether to increase/reduce the position, or stop the loss according to the plan, or increase the floating stop loss point, or take profit and exit.

The tenth step is to reach the expected goal or think that the risk has increased and should stop the profit and exit the game, and at the same time do a good job of summarizing and evaluating the entire transaction.

It should be noted that in the trading plan, the most difficult thing to determine is the exit time, but any plan that cannot determine the exit time will often cause problems.The exit time and the success or failure of the planned operation are closely related to the short-term master's judgment on the nature of the market and the choice of operating style. If there is a problem with them, then most of the trading plans will be difficult to succeed.

Tip 12: Keep a good trading journal
American stock trading master Gann only focused on market statistics in his later years. He believed that finding the laws of the stock market from market statistics is the most valuable work.For the short-term masters themselves, it is more practical to make statistics on the transactions they operate.The former's statistics are aimed at the market, while the latter's statistics are aimed at oneself. Identifying and controlling the market and yourself is the secret to long-term profitability.

So how do short-term masters make statistics on their trading work?The method is to write a transaction journal.It can help short-term masters evaluate their own operational performance, recognize their own trading style and trading pros and cons, and constantly improve their psychological quality and operating norms.However, many short-term masters are unwilling to write and record, but only want to summarize by memory. However, people's memory is often selective, and it is difficult to remember all transaction details and form an operational summary only with their minds.Every transaction must be recorded, which is indeed a bit troublesome, but it will definitely be of great benefit to short-term masters.See the table below:

transaction log
Trading partners
which stock to buy.

stock nature
The nature of the stock purchased.This item allows you to know which stocks are suitable for your trading style.

Self-analysis
transaction hour
What time is it bought/sold.This item allows you to know what time period is most suitable for your transaction.

Self-analysis
transaction motivation
Why buy/sell him.This item lets you know if your trading motives are sound.

Self-analysis
profit target
Your planned selling point.It is helpful to grasp your profit and analyze your take profit level.

Self-analysis
stop loss target
Your planned stop loss.Helps control your losses and analyze your stop loss levels.

Self-analysis
Money management
Changes in adding/lowering positions.Helpful to know if your money management strategy is sound.

Self-analysis
Profit and loss
Profit and loss on the stock.Helpful to know your success rate and average profit and loss amount.

Self-analysis
holding time
The period of holding the stock.It helps to know how long you like or are suitable for trading.

Self-analysis
Strategic analysis
Is the compensation fast enough for losing trades?Are winning trades being held for too long?Is it coming out too soon?Are you really following the trading rules?Are you waiting for the market to turn back?wait.The self-analysis EXCEL sheet has the function of data statistics, so the "transaction log" is suitable for compilation in the EXCEL sheet.Through this table, short-term masters can select the most suitable stocks, market conditions, opportunities, time and operating rules for their own transactions, and at the same time know their operating profit and loss levels and mentality changes.However, if the trading log is only purely recording work, it is meaningless. It requires short-term masters to constantly read and summarize to analyze their strengths and weaknesses, review their trading performance, and enhance their trading confidence.Remember, successful trading does not lie in temporary success or failure, but in whether a good and stable trading concept or operating standard has been implemented.

The 13th action to establish a correct concept of wealth
The reason why many people lose in the long-term capital competition is because they do not have the correct concept of wealth and their mentality cannot be stable.In fact, short-term masters can make money from the stock market. From the perspective of investment, it is because they are optimistic about the development of the country's economy in the long run, so they invest in representative high-growth companies; Because it has grasped the rhythm of the market balance and grasped the weaknesses and weaknesses of other opponents.But in any case, no master has made a lot of money from the stock market purely for the purpose of making money. Their long-term profits benefit from their correct investment (speculation) philosophy, and their stable mentality comes from their correct wealth concept.

Although Buffett was once the richest person in the world, he eventually donated most of his property to five charitable foundations, and these funds did not belong to him from their names to their history; Letting go of any opportunity to make money, on the other hand donating money everywhere, establishing charitable funds, and participating in social change, in order to fulfill his multiple roles as a successful financial speculator, philanthropist, and social reformer.Although they are all keen on their investment (speculation) careers, they have not forgotten their responsibilities to society.

Therefore, as a short-term master, you should know that what you are doing is just redistribution of social wealth. You can understand it as robbing the rich and helping the poor, or as a practical idea, and the only idea you can’t have is to make money.Quick success and mercenary thinking will eventually bankrupt you, just like the unbelievers who were once the world's greatest short-term masters: Jesse Livermore.

More than 400 years ago, Bacon once said in his "On Wealth": "Never pursue wealth for the sake of showing off, but should get it in a proper way, use it in a reasonable way, and give it with joy. Through legitimate means and The pace of wealth acquired by labor is slow."However, many short-term masters do not have the correct concept of wealth, and are eager for success from the very beginning, setting too high aspirations for profit for themselves, making them suffer continuously in the high desire, and finally suffer a lot of losses.

If a short-term master has a principal of 0 yuan, you can first look at the following table:

Total benefit for ideal ROI

10 times growth every 10 years

10 times growth every 20 years

10 years later
100 million yuan
200 million yuan
20 years later
1000 million yuan
4000 million yuan
30 years later
1 billion
8 billion
40 years later
10 billion
160 billion yuan.

Annual return on investment must be 25.89%

The annual return on investment must be 34.93%. It can be seen from the above table that if your plan is to increase by 0 times every 10 years, then the funds will reach 30 million yuan after 25 years, and the required annual return on investment is only 89%. 0%; if your plan is to increase by 20 times every 30 years, then the funds will reach 8 million yuan after 34 years, and the required annual return on investment is only 93%.That being the case, do you still need to care about the trend of the stock market every day?Will you still want to catch all the daily limit?Keep a peaceful mind, make good use of the power of compound interest, and become a billionaire is only a matter of time.

Now, is your annual profit target 20% or 80%?
Tip 14 Cultivate a Good Attitude

To learn to invest, learn to be a human being first, and your attitude towards life will be faithfully reflected in your investment activities, forming your investment philosophy.Therefore, as a successful short-term master, it is not to hone one's psychological quality in the trading market, but to adjust the psychological quality in daily life, and then apply it in the trading market.American Van K., author of "Investment Psychology".Dr. Tharp believes that short-term masters in daily life are extremely important for spiritual and moral cultivation, which includes the following five aspects:
1.mature private life

This is the basis of human virtue.That is to say, in terms of family and private life, a good trader must first conform to the local and current human ethics, be under the invisible supervision of the society and himself, and be open-minded and worthy of the world of human relations.A person's life will always be tested by some emotions (especially when there is a small achievement), which tests your moral bottom line, and whether you can overcome it and stick to your moral bottom line will be the ability to overcome greed and fear when trading thinking produces greed and fear. The key to defeating them.Adhering to good principles and cultivating habits requires short-term masters to reflect and hone their minds in daily life.

2.enthusiastic attitude
One of the great dynamics of human existence is positivity.When repeated failures make your heart ache again and again, slowly you will lose your fighting spirit.The reason is that you are too selfish and value your own gains and losses too much, so that the force of each blow becomes heavier due to selfishness; eventually you will lose your fighting spirit and reason, and thus become ignorant until you go bankrupt.This is also reflected in your character: a person who loves little or only loves himself in daily life does not have a positive attitude in the true sense, and he will not swear or bow his head.Only when you are magnanimous and selfless in your heart, will you generate a kind of positive power invisibly. This kind of power can often overcome many difficulties until you see stable profit results.In the investment market, all good attitudes come from the cultivation of daily life, and it is by no means a coincidence.

3.Motivation to make money
(End of this chapter)