Short-term Trading Comeback Secrets: The Turning Point from Loss to Recovery
I once suffered greatly from chasing highs and catching falling knives, but later summarized a few simple principles that successfully helped me avoid these traps:
1. Chasing highs is fatal; get in steadily
Do not chase prices that break previous highs; wait for a pullback to the lower or middle Bollinger Band before entering the market to avoid being trapped.
2. Do not catch falling knives; be steady and methodical
Do not blindly catch the decline; wait for the price to stabilize, especially when a continuation pattern appears in the middle of the 1-hour chart, do not rush to enter.
3. Avoid thin trading periods; missing out is not a loss
After 2:30 PM and 10:30 PM, market trading volume is low and price movements are unclear, avoid trading during this period.
4. Volume determines direction
Observe trading volume; only enter when the volume increases, the price movement of candles with no volume cannot be trusted.
5. Strict stop-loss; control losses
Each entry has clear logic, set a tight stop-loss; once the stop-loss is hit, exit decisively and wait for the next opportunity.
These simple principles helped me avoid many losses and ultimately recover from failure.
