Good news: You can invest in the 8-digit big pie again.

Bad news: The big pie has dropped below the cost price, and the 120000U profit has been fully withdrawn 😆

Ultra-short-term trading and speculation??

What is ultra-short-term trading?

Ultra-short-term trading has two requirements:

1. The trading time is short, typically resolved within a few minutes; at most, it might take one or two hours.

2. High win rate; ultra-short-term trading is based on price structure breakouts. After the breakout signal is issued, you enter the market to join the battle, thus having an extremely high win rate.

3. Low risk-reward ratio; the market is perilous and complex, often remaining in a chaotic state. Therefore, locking in profits and exiting in a timely manner is the best strategy. This has a natural disadvantage, which is the inability to patiently wait for market developments.

Nevertheless, ensuring capital safety and controlling drawdown is the primary task of a professional trader. So even if sometimes you miss out on substantial profits, you can only express regret. In the perilous trading jungle, grabbing what you can and running is the safest option; you never know if there are predators behind you.

What is speculation?

Most people have a natural prejudice against speculation, believing that speculation is associated with illegal activities and is an improper industry.

In fact, the definition of speculation in trading is: traders find a suitable trading strategy in the market, validated through backtesting and live trading, discovering an appropriate risk-reward ratio and win rate, with an overall expectation greater than 1.

After multiple consecutive trades, profits and losses cancel each other out, ultimately achieving positive growth in overall positions.

The key during this period is:

1. The ability to conduct multiple consecutive trades (multiple sets of experiments)

2. The entry and exit conditions for each trade are the same (controlled variables)

3. Finally, under the power of mathematical statistics, achieve a trading strategy with a positive expectation.

Therefore, it can be said that ultra-short-term trading is about finding one or more trading strategies in the market. After the market signal is issued, you immediately enter, and after the exit signal is issued, you immediately leave, even if there may be losses, the overall expectation is greater than 1. Thus, traders can achieve stable capital growth in long-term trading.

This also requires traders to maintain consistency in trading, always following the established trading strategy to avoid differing results due to changing conditions.