These are the tricks for short-term stocks

Chapter 5 Preparations for short-term trading (5)
Fourth, other people.Some short-term masters are immune to the pointers and gossip of other people in the market, but more short-term masters do not have the ability to resist temptation and refuse to be lazy.In today's information age, no one can isolate information, and almost no one dares to isolate information. Information that is true or false is like honey, luring countless short-term masters to the beach.People need information, but in the end most people are also destroyed by information, and most short-term masters who have no independent ability are eventually swallowed by the market.

For a real tiger like myself, "walking" is the most critical, but this "walking" requires conscious guidance or mandatory execution.Easier said than done, short-term masters need to work harder here.

The 18th trick is to clarify the trading strategy
To put it simply, a trading strategy is what to do at what stage, just like a combat strategy, and how to do it is a tactical issue.When the trading strategy is clear, once you stick to it, you will form a trading style.Obviously, trading style is just a form, while the actual trading strategy runs through the whole form like an aorta.

In the stock market, there are many analysis indicators and analysis tools, like [-] weapons, but no matter how powerful they are, they must be guaranteed by trading strategies, so that they can be accurately attacked and effectively control the enemy.The trading strategy guides where the analysis tools go and when they are effective, but it is itself a product of the trading philosophy.The trading concept is just like the inner strength method, which ensures the correctness and implementability of the trading strategy.To put it simply, the trading philosophy is the purest view of the stock market formed by short-term masters after they have a complete market view and stock market values, and the idea of ​​using the stock market function to resonate accordingly.Once they have an essential understanding of the stock market, short-term masters will naturally form their own trading strategies and methods, and start games in the market.

Trading strategies are often unique, used to guide transactions, and can stand the test of the market.In the process of conducting transactions, various issues will be involved, and each aspect should have a corresponding trading strategy to guide its implementation.for example:
One of the market environment analysis strategies: If the market capital supply is sufficient, the bull market will not fade away, and the stocks should be held to rise.

One of the stock quality analysis strategies for individual stocks: blue-chip stocks are stable and can be held in the midline; growth stocks will be turbulent, and the main Shenglang should be seized.

One of the technical analysis strategies of individual stocks: buy when the stock price breaks through the W bottom upwards, and sell when the stock price breaks through the M top downward.

One of the main analysis strategies for individual stocks: the stocks held by the fund are of the nature of helping the rise and the fall, and they must be owned when the market strengthens.

One of the market psychological analysis strategies: When market stock critics and the media are unanimously optimistic, if the bull market lasts for a long time, you should be cautious about holding stocks.

One of the trading timing strategies: when the sector is collectively strong, the risk of timely intervention is small, and selective intervention is possible.

It is especially worth noting that most of the above strategies are the conclusions of analysis, which lead to trading strategies. However, when implementing them, there will be a strategic problem of trading timing, which is something that every short-term expert will inevitably face. The problem.Many short-term masters regard the buying process as too simple. That is because most short-term masters have too small funds and can complete one transaction, but for large funds, there will be best trading points, second best trading points, suitable trading points etc.These trading points are not judged after the fact, but exist in an unknown time and space where most of them will appear.For example, if a short-term master wants to buy a stock at a place in the middle of the stock price that is about to break through an important resistance level, then there will be four buying points, namely: the point about to break through, the point that has already broken through, the point of retracement after the breakout, and the point of retracement. Break point again after file.Obviously, the upcoming breakthrough point is a suitable trading point, which has certain risks; the breakthrough point is the second best trading point, and the risk is small; the retracement point after the breakthrough is not a place worth trading, because I don’t know if it is the return of a false breakthrough ; The best trading point is the breakthrough point after retracement, which is worth buying in large quantities with less risk.Of course, there are also short-term experts who think that the risk of the stock price will increase as it goes forward, but this is often the natural timidity shown by not considering the overall trend of the trend and not paying attention to the energy of the breakthrough. In most cases, it is not worth worrying about.In actual trading, some short-term masters will buy at the above three trading points, while others only buy at one trading point, which is closely related to personal trading style and grasp of individual stocks.

Tip 19 Cultivate a Trading Style
Short-term masters must know that for the very short-term of buying today and selling tomorrow, the basis for entering and exiting the market is market sense rather than others.Ordinary short-term masters trade based on rational analysis, while extremely short-term short-term masters trade based on conditioned reflex or instinctive reaction, and there is no room for hesitation in entering or exiting the market.It is a kind of trading behavior in which body and mind are united, and it is a super high state of hunting on the spot.This mode is only suitable for individual individuals. It requires long-term trading experience accumulation and profound technical analysis skills of short-term masters, and then they can be impermanent and see their tricks.

The advantage of short-term trading is to only chase strong stocks and only follow the flow of funds. If the trend rises, you will advance, and if the trend is weak, you will retreat. With the shortest position holding time, the risk of the stocks you hold is reduced to the greatest extent, and the profit model of accumulating less and more can be obtained in weak markets. return on investment in .

Generally speaking, the aggressive trading style of short-term masters is: this kind of short-term master focuses on short-term trading, obtains profits from medium and long-term short-term masters in a short, flat and fast way, dares to take risks and operates frequently, and believes that the shorter the time, the riskier smaller.

Aggressive short-term masters often pursue high-risk, high-profit operations, which are generally the preference of small capital owners.They dare to chase highs and bottoms, and often adopt a desperate full position model.If the timing of the transaction is grasped correctly, there is often a larger profit margin; otherwise, it is easy to cause a larger loss.

Step 20 Do a Complete Technical Analysis

Many short-term masters are often confused when conducting technical analysis, or even don't know how many aspects to look at. This is obviously the result of poor academic skills.Here is a complete technical analysis checklist:
1.first look at the trend

Look at the monthly K-line chart, or through the Dow Theory and the moving average system, to see whether the main trend of the entire market is a bull market or a bear market.Also pay attention to the support and resistance of the trend line.

2.Look at the stage again

Look at the weekly K-line chart, or use the Dow Theory, Wave Theory, and moving average system to see which stage the current trend belongs to in a bull market or a bear market, and whether the current secondary trend is a callback or a rebound.

3.Look at the interval again

Look at the daily K-line chart, through the trend line or phased, historical, integer support/pressure line, and percentage retracement line, etc., to see how much space there is for a callback or rebound.

4.Look at the moving average

Look at the subtle changes in the angle, convergence, intersection, bonding, divergence, and parallel conditions of the 10-day moving average, 30-day moving average, 90-day moving average, and even 250-day moving average.

5.Look at K line again

Form: See if there are typical medium and long-term K-line forms such as "M head", "W bottom", "V top" and "arc top (bottom)" on the chart in recent months.

Angle: Use the Gann line to observe the current trend angle of the K line. The angle represents the dialectical relationship between stock price and time, and also means the impact of stock price movement.

Combination: Look at the K-line combination of the latest band, including the number of yin and yang lines during this time period, and the number of K-lines that have continuously hit new highs or new lows.

Gap: The gap represents a leap, its importance is greater than that of the short-term form, and it has the function of support or pressure, so it depends on whether there is a gap nearby.If yes, which number is it.

K-line: Look at the typical shape of the K-line in recent days, then look at the relative position, shape and length of the K-line, and pay attention to the pressure or support of the Yin and Yang lines.

6.Look at the technical indicators

If you are interested in technical indicators, you can watch the status of the limit zone of technical indicators, as well as the status of crossing and divergence, but pay attention to the differences between homeopathic indicators and oscillatory indicators.

7.Look at the transaction volume
According to the position of the stock price, and then according to the 10 relationships between trading volume and price, continue to judge the main force's operational thinking and grasp the rhythm of the trend maker.

8.look at mobile costs

It is mainly to study the holding cost of the main force, to see whether the main force has obtained enough bargaining chips at the low position, whether it intends to change hands at the high position, and whether there is a pressure zone or support zone for individual stocks in the middle position.

9.Look at Handicap Dongjie

Handicap dynamics include opening dynamics, morning dynamics, afternoon dynamics, and closing dynamics. The purpose is to see the changes in the market, and at the same time observe the similarities and differences in combination with the broader market.

——Remember, when trading, your environment (overall technical situation) and position (high, middle, and low prices) far exceed your standing posture.That is: the market development before and after the formation of the price pattern is the key to the success of the transaction.

The 21st move to understand Gann's code 24

Gann has left many works to future generations. His forecasting techniques cover mathematics, geometry, astrology, etc., while his trading rules come from his years of trading experience and market statistics.He believes that there are three main reasons why short-term masters suffer losses in market trading:
1) Excessive buying and selling on limited capital.

2) Stop loss points are not set to control losses.

3) Lack of market knowledge.

The above third point is the most important reason why Gann believes that short-term masters lose in market trading.Therefore, Gann's advice to all short-term masters is: before you lose money, please study the market carefully.He believes that before entering the market, short-term masters must understand:

1) You may make bad buying and selling decisions.

2) You must know how to handle errors.

3) Entering and exiting the market must be based on a set of established rules, and never blindly guess the development of market conditions.

4) Market conditions and times change frequently, and short-term masters must learn to follow market changes.

Gann summed up his 45 years of experience in investing and buying on Wall Street, and finally believed that rules are more important than predictions.So it was written as "Twelve Trading Rules" and "24 Trading Rules".The former is closely related to graphical analysis, while the latter is the criteria and terms of the transaction.

The "24 Rules of Buying and Selling" are as follows:
1) Divide your capital into 10 equal parts, and each time you enter the market, the loss should not exceed 10/[-] of your capital.

2) Set a stop loss position to reduce possible losses when trading goes wrong.

3) Do not buy or sell excessively.

4) Don't let the position you hold turn from profit to loss, that is: float the stop loss point or sell it immediately.

5) Don't go against the market, when the market trend is not obvious, you would rather wait and see from the sidelines.

6) Be firm when entering the market, and do not enter the market when you are hesitant.

(End of this chapter)