These are the tricks for short-term stocks

Chapter 4 Preparations for short-term trading (4)
Some short-term masters enter the securities market because they think there are huge profits here; some short-term masters think that this is in line with their hobbies;This is like building a house. Some people think that they are stacking stones, while others know that they are building a house, while others realize that they are solving the problem of housing for tens of millions of people.Different cognitive views will lead to different people's earning power and final results.As mentioned earlier, if your motivation for making money is not clear and positive, and your behavior of making money is not correct and efficient, then you are likely to lose out in this market eventually. people.

4.balance of inner conflict
There are no people with good spirits in the world, it's just that the "medicine box" in their hearts is big or small. For a person with a small "medicine box", when the daily experience exceeds his rational (rational) bottom line, the disordered order often cannot be restored, and this is fatal to the transaction.Therefore, successful short-term masters often continue to expand the capacity of their "medicine box" in life, and balance the contradictions and conflicts of multiple parties so that they can bear more loads.Inner conflicts include emotions, interests, desires, pressure, etc. The easiest way to balance them is to face them calmly, analyze them, understand them, and make partial compromises.

5.Responsibility for results
Everyone living in society cannot escape responsibility.Being a leader, being a parent, being a child, being a teacher... all have corresponding responsibilities.Responsibility is not a process, but to see the result, especially in a market economy that can be materialized, being responsible for the result is necessary for the survival of all companies and individuals.This is especially true in the investment market. If you fail to be responsible for yourself, your money will soon be taken away by others.Whether you want to cultivate your body and mind, improve your trading level, or earn investment returns, you must always pay attention to every step of your investment behavior, because you will immediately see the result of the behavior-the reduction or increase of the principal.

The 15th stroke trains 12 kinds of qualities

In the field of investment, success is not simply a skill or knowledge, but an extension of excellent qualities.But this quality is not innate, but cultivated slowly.You sow an action and you reap a habit, sow a habit and you reap a character, sow a character and you reap a destiny.Therefore, you are the main body of your success, and your quality determines your success or failure.These important qualities require short-term masters to work hard to master and adapt, and to practice them.Those "successful" short-term masters who do not have good qualities are just the lucky ones who left the market before their investment (speculation) career ended.Destiny is in the hands of short-term masters. It is unrealistic to imagine that luck will always come to you. The correct way is to pay attention to and cultivate your own trading quality.

Generally speaking, the basic qualities of a successful short-term master mainly include 2 aspects:
1.diligent

Rogers once said: I don't think I'm smart, but I do work very, very, very hard (one person does the work of six people), if you can work very hard and love your job, you have chance of success.It can be seen that diligence is the foundation of all success. It can make the dull become wise, the poor become rich, the student become a master, and so on.In the stock market, in addition to the practice of the body, it is more to use the brain to think.Diligent study, diligent thinking, diligent awareness, diligent practice, diligent summary, etc., will lead you to the road to success.

2.self-discipline

The stock market is turbulent, mysterious and ever-changing. No one can accurately predict the future. Only short-term masters control themselves by means of self-discipline, and can find the gap law of the market, and seize profits from impulsive short-term masters or the main force that cannot restrain you for the time being. .You can't beat the market, but you have to beat yourself, otherwise, failure is inevitable.Self-discipline can enable short-term masters to still have the courage to buy when others are fearful, and it can also enable short-term masters to sell boldly when everyone is greedy, and it can also make short-term masters get rid of their impetuosity and follow the trend.Self-discipline is the armor to fight against the evil of human nature, and it is especially important.

3.calm

In the stock market, only by refraining from haste and impetuosity, and watching calmly, can we look at the market objectively, so as not to enter early, not to retreat late, and follow the trend.Don't try to seize every market opportunity, no one can do it.And don't try to sell to the highest point, that's something that can't be met.For those short-term daily limits that are not practical, it is best to let them pass by.As a calm short-term expert, every time you make a transaction, you should be clear about the reason for the transaction and trade according to your own plan.If you don't feel comfortable, don't trade.Only when your essence, energy, spirit, and brain are in a good state can you grasp the excellent profit opportunity.

4.decisive

In every second of the stock market, there are countless short-term masters observing, thinking, guessing and acting, and "herd effect", "butterfly effect" and "domino effect" often occur.If the short-term masters are not courageous enough, they will miss good opportunities and make big mistakes.Every successful person is a person who is courageous, courageous, and able to make decisive decisions. The quality of courage is very important in the game market.Sometimes, if you are even 1/6 second slower to press the button, the daily limit will miss you, but the lower limit will follow one after another.But boldness is the expression of boldness and skill, not reckless behavior.

5.cautious

In trading, there are many phenomena that are difficult to distinguish at the moment.For example, if you are afraid of greed, you will be self-righteous and enter the market early; if you are afraid of fear, you will enter the market early; if you want to be bold, you will become impulsive; if you want to feel at ease, you will become optimistic.Or, when you make money, you start to feel relaxed and complacent, and when you lose money, you start to feel nervous, and it feels normal to jump up and down in the market, etc.The occurrence of these situations is basically due to imprudence.Not being cautious is not only a matter of psychological control, but also a manifestation of the lack of concept of market yin and yang conversion.Prudence represents rigor and neutrality, which are the consistent qualities of successful short-term masters.Don't do anything unless you really know what you're doing.

6.confidence

Confidence is the hallmark of all successful people.Without self-confidence in society, it is difficult to arouse others' recognition of you, thus losing opportunities; without self-confidence in the stock market, it is difficult to resist the temptation of daily fluctuations, thus losing capital.Confidence comes from consistent correct market cognition and stable profitability, as well as from one's own health and capital strength.But for short-term masters who have just entered the market, self-psychological hints can also help improve their self-confidence and stabilize their operating emotions.Taking self-suggestion can enable short-term masters to self-regulate, trigger positive thinking, eliminate tension, panic and other negative emotions, and put themselves in the best trading state.

7.honest

As a human being, hypocrisy and deceit are the most taboo. If you deceive others in life, you will deceive yourself in the market.In the securities market, short-term masters must be absolutely honest, so that it is possible to erase impetuousness and fluke, find the truth of the market and the essence of problems, discover their own weaknesses and defects, and then improve and perfect them.Finding problems, facing them squarely, correcting mistakes when you know them, and matching words with deeds are the basis for short-term masters to survive in the market.In this market where you don’t need to deal with people, the only things you have to solve are “knowing the screen” and “doing yourself”, and honesty is the only bridge that allows you to “integrate knowledge and action”.

8.humble

The so-called humility means being in awe of the market and knowing how small you are in front of nature.In the market, short-term masters must not think that they know anything. Any price decision depends on the actual actions of tens of millions of short-term masters, which will eventually be reflected in the market. No one can accurately predict.There are no absolute winners and no absolute losers in the stock market, but it is an eternal truth that an arrogant soldier is bound to lose.Only a humble person will maintain a peaceful mind and vigilant thinking, will continue to enrich themselves, and at the same time gain a wide range of contacts, and resolve crises in a timely manner.

9.independent

Buffett once said that he is very grateful to his father, because his father taught him the concept of relying on himself to judge right and wrong when he was young; while Rogers never paid attention to Wall Street securities analysts, he believed that he must think independently, Forget the "herd mentality".It can be seen that independent thinking and action is a manifestation of a person's complete thinking and independent personality, and it is also a manifestation of a person's courage to take responsibility and bear the risk of profit. Without an independent personality, it is difficult to achieve a career.Le Pen also asserted in his famous book "The Crowd: A Study of the Mass Psychology" that the masses are crazy, while the individual is rational.

10.normal heart
The so-called normal mind is to have a peaceful mind, be able to look at people and things in life naturally, calmly look at fame and fortune in career, and look at the ups and downs of the stock market with ease.But this is not something that can be accomplished overnight. It has a lot to do with a person's experience, experience, knowledge and pursuit.With a normal mind, you will know what is inevitable and what is accidental.Grasp the inevitable rise and avoid the inevitable fall. The remaining time is to give up countless traps and wait for opportunities worth intervening.Know how to give up, know how to wait, know what is inevitable, deal with the objective world with a normal heart, follow the trend, and do what you can, and you will be able to reap a good harvest.

11.savvy

It is difficult for short-term masters without savvy to enter the palace of investment masters.Comprehension comes from thinking and experience. Only after long-term practical experience and accumulation of theoretical knowledge, when the quantity reaches the critical point of quality, short-term masters will have inspiration or comprehension, and suddenly understand some market laws and truths, and understand the trading part Substance and inner mechanism.The establishment of all investment concepts comes from the perception of short-term masters themselves. After summarizing, classifying, sorting, and refining these insights after actual combat, they will form a long-term trading system that short-term masters have persisted in, which has passed the test of time.

12.persist in

The secret of making money in the stock market lies first in the cultivation of the above-mentioned good qualities. Obviously, these are universal truths, but it is these simple truths, these simple things that are often overlooked by people, that restrict the vast majority of people. The development path of some short-term masters.If the short-term masters understand these and start to act, it is not a bad thing, but if they cannot persist for a long time and become their own habits, then no matter how good things are, it will be difficult for short-term masters to absorb them and then play their due role effect. "I don't know" is the performance of the fool, "I can't" is the performance of the weak, only by insisting on "the unity of knowledge and action" can we finally attain the Tao.

The 16th trick to relieve the pressure of short-term trading
Foreign research shows that excellent traders usually do not cut off the connection between trading activities and daily life. This is one of the biggest differences between them and amateur short-term masters. They require every aspect of life to support each other and coordinate with each other.It can be seen that health and stress management are very important for short-term masters.

Stress can help or hinder trading, depending on how the short-term master responds to the stressful situation.According to Neil Weintraub, these questions can tell a short-term trader how stressed he is:

1) Has your personal life been affected by your trading experience?

2) Do you often think about the problem of failure?
3) Does your emotion fluctuate with trading performance?

4) Do you wish to completely change the trading system?

5) Do you find it difficult to focus?

6) Do you find yourself having a hard time pausing trades?

7) Are you neglecting your own trading system?
8) Do you turn a deaf ear when others speak?
9) Have you become forgetful?

lO) Do you always feel tired and sleepy?

When the above situation occurs for short-term masters, it means that they have already felt the pressure from trading.So, how to deal with stress or reduce it?The following approach is recommended:

1) Diet.Keep mealtimes regular while considering a low-calorie diet and avoid stimulant foods and caffeinated beverages.

2) Exercise at least three times a week.The substances secreted during exercise can reduce stress, and people in good physiological condition can easily cope with stress.

3) Learn to meditate, practice yoga or simply relax.

4) Keep a transaction log, including goals.

5) Build a support network, including friends and family.

6) Occasionally do some other things, get rid of routine lifestyle, such as going to eat a big meal or travel, etc.

7) Need at least 6-8 hours of sleep every night.If you're having trouble falling asleep, schedule a nine-hour break.

8) From your trading journal, look for sources of stress.For example, is the transaction size too large?Are there too many open positions to manage?If so, find ways to get yourself back within your "comfort boundaries" by reducing the trade size or the number of open positions.

Like any goal, reducing stress comes at a price.Reducing stress takes time and patience, but it is also used to improve your trading performance.Notice that you are fighting against what is hindering your trading performance.

Tip 17 Understand the Factors Affecting Profitability
A short-term master who has just entered the market often does not know who has affected his transaction, causing him to continuously lose money.In fact, there are two main factors affecting his profit: one is the market, and the other is himself.

1.The market is a paper tiger
Many short-term masters think that the market is the most important, because their transactions must be completed in it, and choosing a transaction partner often consumes most of their time.So many people spend a lot of energy researching the market, analyzing the market, predicting the market, and following the market.But in fact, Buffett seldom studies the market, he only studies the value and prospects of his listed companies; while Soros focuses his energy on the international political situation, international economic structure, regional financial conflicts, regional market opportunities, etc. In terms of research, Lynch puts his main energy on asset allocation, which is closely related to the economic cycle and capital management skills.It can be seen that the market is only a stage for fulfilling their investment ideas, not the focus of their research.

No one can accurately predict the local trend of the stock market for a long time, and it is not worth the loss to spend a lot of time on it; there is no market maker who can make long-term stable profits, and it is unrealistic to always hope to make profits by sitting on the bank.What the market leaves to short-term masters is only the knowledge and laws that need to be understood, that is, "knowledge".This "knowledge" is consciousness and perception, which can be obtained only by short-term masters who read extensively, think hard and practice bravely.The market is a paper tiger, which can be subdued and controlled by short-term masters who only need to read and think.

The understanding of the market is nothing more than two aspects.One is the understanding of the policy, economy and capital supply, which is the understanding of the market trend; the other is the understanding of the development of individual stock companies, the performance of the secondary market, the dynamics of the main bargaining chips, etc., which is the understanding of individual stocks.Of course, this understanding is for junior traders or short-term masters. Even Buffett went through this stage when he was in his 20s, and this stage cannot be avoided.

2.I am a real tiger
Why do different short-term masters have different views and actions even in the face of the same technical form and the same market news?In fact, people's understanding of the world is based on the part of the world projected in his eyes.Everyone's experience and knowledge are limited, so everyone's world is incomplete, and it is difficult to distinguish between true and false, but the size of the incomplete and the degree of truth and falsehood are different.Therefore, how you view the market, and whether the way you view it is correct or not, depends entirely on your own comprehensive knowledge and judgment ability.In contrast, the market is dead, and you are alive.As long as you change your view, the market may no longer be the original market. You, who are changeable, are the real obstacle.

This tiger has four legs.

First, market awareness.As mentioned above, you must form a comprehensive and systematic market cognition before you can beat your opponents and obtain a return on investment that exceeds the average market rate of return.Your correct understanding of this market is very important.If the market is a horse, you insist on thinking that you are a donkey without realizing the gap between you and the public, which may be very dangerous; but if the market is a horse, you are aware of it and the public in the market regards it as a donkey, Then the market public will pay for their misperceptions.

Second, trading decisions.When you have a certain understanding of the market, you will have your own trading philosophy, coupled with your personality and habits, will form a trading decision.The market itself has been filtered by you, and how it changes is almost in your consideration, so the market is no longer important.Trading decisions based on market cognition, like combat strategies and business strategies, directly determine your success or failure.Stupid, impulsive, and unstable trading decisions will lead to losses and failures in your trading.

Third, trading behavior.This is a process of executing trading decisions, which seems simple.But in fact, almost all the difficulties of work do not lie in the formation of decisions but in the correct execution.Execution is a difficult topic in the business world, and it is also where the gap between personal ideals and reality lies.In fact, many trading behaviors are often changed by the impact of the market, which makes trading decisions unable to proceed smoothly amidst hesitation, procrastination, impulsiveness, fear, and repetition.For some short-term masters, the effort to control trading behavior is far greater than other links.

(End of this chapter)