There are many short-term trading opportunities and a strong
sense of pleasure, but if retail investors want to do short-term trading, they
need to improve these abilities first. Analysis of trend charts, influence of
information, sustained intensity, stress resistance of one's own mentality,
etc. Use these to improve the short-term success rate, otherwise it will become
over-trading, which is the number one reason why traders lose money.
Trend chart analysis ability
Short-term trading, often providing liquidity or momentum to
long-term trends, aids in trendline rebounds or continuations. Short-term
trading involves riding the main uptrend or a correction, and chart analysis
can reveal the likelihood of a strong uptrend, a correction, or both. A common
approach involves formulating trading models by summarizing historical trends,
similar to set patterns in Go. Improvement requires personal summarization of
trends, applicable historical phases, and the impact of market strength on the
model. Chart analysis models can enhance short-term trading success and
mitigate overtrading risks.
The influence of information
The influence of information is an important factor in
short-term success. Only the diffusion of information will attract more
investors to participate. Information includes trend information, news
information, announcement information, research report information, etc.
Assessing information
is a common weakness among retail investors. However, they can enhance their
decision-making by following reputable financial websites, prominent news
outlets and respected analysts and researchers. These individuals not only
possess expert judgment but also wield influence, attracting traders to enter
the market.Assessing information is a common weakness among retail investors.
However, they can enhance their decision-making by following reputable
financial websites, prominent news outlets and respected analysts and
researchers. These individuals not only possess expert judgment but also wield
influence, attracting traders to enter the market.
Analysing a single
piece of influential information is inadequate. It's essential to examine
preceding significant information, the market's reaction, and the current
market position. After purchasing, evaluate whether the trend can sustain its
strength by checking for new highs and subsequent large K-lines. These factors
indicate the trend's sustainability. Assess whether individual stocks within
hot sectors are exhibiting divergence, identifying which ones are strong and
which are weak. When new hot sectors emerge, old sectors tend to experience a
retreat, especially during weak market conditions. Closely monitor the
sustainability of individual stocks, sectors, and indices.
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Psychological resilience in stock trading
Stock trading inherently involves dealing with money and
there are constant changes and outcomes. Compared to other industries where
results take longer to materialize, stock trading results are particularly
immediate, especially in short-term trading. Therefore, psychological
resilience is crucial. Traders must possess the ability to withstand both
losses and gains. Personally, I believe that viewing your capital curve as a
long-term trend chart can minimize psychological impact. By extending the
timeframe, short-term trading transforms into long-term investment, with the
only difference being that you are investing in yourself.
Conclusion
It would be a big mistake if you set the threshold of
financial investment as money. In fact, financial investment, like industrial
investment, also requires people, money, and materials. People, just treat it
as a career, or hire people to do it; wealth, needless to say, but the speed of
loss or increase in financial investment has nothing to do with the amount of
money. Objects, this object is different from fixed assets in industry. It is
investment experience, that is, a machine or crusher that makes money. At the
same time, we must also grasp the timing of the general environment. Only when
there is talent, we will have the advantage of entering first. Seeking harmony
is the essence of stock trading, and the direction of market cooperation is the
ultimate direction.
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