Two types of high certainty opportunities:
1. Medium to long-term layout equals betting on tracks, betting on favored tracks, earning a long-term beta return as long as the fundamentals do not change, and it is very suitable for large capital to layout.
2. Intraday trading, trading emotions and attention, with a bit of gambling nature, but the overall mathematical expectation is good. In simple terms, the odds are appropriate, but it is not suitable for large capital to enter and exit.
I currently have small funds and need to use small funds for high-frequency compounding, focusing on time efficiency, making intraday trading a good choice.
In intraday trading, I mainly do two types:
One is news trading, considering how much impact current events can have, whether there will be sustained buying and whether buying can act as liquidity afterward? After good and bad news is fully digested, consider whether there are potential reverse bad or good news? Is the fundamental damaged?
The other is attention trading, considering whether a target has reached the peak of attention? Is everyone betting on a certain good news that exits liquidity?
Another point, with small funds, I also tend to avoid using excessive leverage for trading. Stable compounding is more suitable for long-term survival than short-term gambling.
Refuse to eat the uncertain fish tails, but rather eat the most stable part of the fish body after opportunities arise.
