Three core strategies to increase success rate (practical tips)
"Successful trading is not just about technique, but also a game of patience with oneself." — Soros
Short-term trading, as a quick profit-making method in the market, attracts countless investors. However, how can one maintain a high success rate amidst frequent entries and exits?
Especially for short-term traders, achieving stable profits requires not only technique but also patience and strategy. Today, we will discuss several key methods to improve success rates in short-term trading, from signal selection to profit-loss ratio adjustments, and techniques for accumulating profits, hoping to provide effective references for you.
1. Signal selection: patiently wait for the best opportunity
In short-term trading, capturing the right buying and selling moments is crucial, as it not only helps us avoid false signals but also effectively increases the win rate of trades. However, truly high-success-rate opportunities are rare, and to find such opportunities, we need to possess sufficient patience and strict signal selection abilities.
a. Trading opportunities under multiple resonance conditions
The so-called "multiple resonance" refers to the formation of resonance by multiple technical indicators or signals at the same time or within a short period. This resonance can be the synchronous resonance of price patterns, technical indicators, and market volume, or the consistency between short-term trends and long-term trends. Resonance signals not only represent a strengthening of market trends but also serve as relatively safe entry signals.
For example, when the moving average system, RSI indicator, and candlestick patterns all point in one direction, this signals multiple resonance. The advantage of such signals is that they not only increase the success rate but also significantly reduce the interference of false signals. Multiple resonance means that the market consensus is clearer, and the reliability of entering the market is higher.
b. Trading opportunities after false breakouts
In short-term trading, false breakouts often serve as a means to lure traders into positions, and this phenomenon can help us capture reversal opportunities after market consolidation. Specifically, false breakouts typically occur near important support or resistance levels, and when the market quickly retreats after breaking through key positions, it often indicates that the main players are clearing floating positions in the market.
Reversal opportunities after false breakouts usually have a high win rate because market sentiment has noticeably reversed at this point. For example, when a stock price false breaks down and quickly pulls back above the support level, this is an opportunity we can consider entering. By capturing the pullback opportunities after false breakouts, short-term traders can achieve high returns with low risks.
c. The importance of patience
Signal selection and patient waiting are equally important. Many short-term traders are easily swayed by market fluctuations, leading to overtrading, which is often the main reason for a reduced success rate. In short-term trading, patience is the key to our success. Waiting for clear signals and patiently observing market trends can help find truly qualifying trading opportunities.