The Ironclad Rules of Short-Term Trading Experts!!!
Short-term trading requires keeping a close eye on the market. The following seven tips and six mantras are worth remembering:
Buying and Selling Tips
1. Keep a close eye on the sector leaders. Once the leaders start to move, immediately observe the following stocks in the same sector to seize opportunities for synergy.
2. Volume is a key signal: Buy in batches when volume is low, enter the market fully when volume increases at low levels, and sell decisively when volume increases at high levels.
3. Volume determines your trading during pullbacks: Buy on pullbacks with decreasing volume, sell on pullbacks with increasing volume. Excessive volume often signals selling by major players.
4. Use technical indicators to aid decision-making: Buy when the RSI hovers at a low level three times or is below 10, sell when it hovers at a high level three times or is above 85, and sell when the stock price hits a new high but the RSI doesn't synchronize. For short-term trading, refer to KDJ and W% R, and for long-term trading, focus on TRIX. 5. Abandon the bias toward high-performing and low-performing stocks, and only distinguish between strong and weak stocks, and between stocks with strong market makers and those with weak market makers.
6. Use moving average crossovers to determine buy and sell points: Buy when the 5-day and 10-day moving averages cross upward and the stock price is above the moving averages; hold firmly until the 10-day moving average is broken, and sell when the 5-day moving average turns downward (the 10-day moving average is the main cost line).
7. Utilize the strategy of chasing up and selling down: The strong stay strong, the weak stay weak; seize the opportunity window and avoid hesitation.
Trading Tips
1. Don't sell until the price reaches a high, don't buy until the price drops, and don't trade when the price is sideways.
2. Buy the negative trend, not the positive trend; sell the positive trend, not the negative trend.
3. During sideways trading, wait patiently and act only after the market turns downward: sell off positions when the price is at a high level and reverses, and buy in when the price is at a low level and reverses upward.
4. Sell immediately when the price rises after sideways trading at a high level; buy all positions when the price reaches a new low after sideways trading at a low level.
5. Build positions in batches using the pyramid method: Buy more as the price drops, and increase your position as planned at low levels, rather than cutting losses. This is a key principle of value investing.
6. If the stock doesn't rise after one or two recommendations, there's a high probability of a downward shock, so be cautious.
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