Many retail investors like to engage in short-term trading. Today, I will share several methods and techniques for short-term trading to help you better grasp the trading rhythm!
1. Consolidation: After a high-level consolidation, there is often a new high, and after a low-level consolidation, there is usually a new low. In terms of operation, do not enter blindly; wait until the direction of the market change is clear before taking action to avoid uncertain risks.
2. Sideways Strategy: It is advised not to trade during the sideways phase, as most investors lose money because they find it difficult to do this. At this time, one should remain observant and wait until the trend is clear before acting.
3. Rebound Correlation: The downward trend slows down, and the strength of the rebound is also weak; when the decline accelerates, the rebound is often rapid. You can judge the strength of the rebound based on the speed and extent of the decline, making flexible trading decisions.
4. Position Building Method: Use a pyramid approach to build positions, which is one of the core concepts of value investing. Buying in batches not only reduces the cost of holding but also diversifies investment risks.
5. Operations After Continuous Rise and Fall: After continuous rise and fall, it will inevitably enter a sideways phase. At this time, do not rush to sell at high levels, nor rush to buy at low levels; wait for the market change signal to appear before taking action. The core of trading is to maintain stability and patience, avoiding emotional decisions.
The market is never short of opportunities; what is lacking is the patience to wait for opportunities and the ability to seize them. By doing these, you can survive and profit in the investment market in the long term!
