Four Misunderstandings That Should Be Avoided In Short Term Operation

One, "as long as the method is right, everyone can become a short-term master."

Most retail investors like to make short lines. It seems that if they do not make short lines, they will not be fired.

The following friends are not suitable for short term:

Firstly, people who are afraid that stocks will go up and do not dare to catch up with leading stocks are not suitable for short term. This kind of people think that every stock will rise after a wave of market starts, so they always stick to their cowhide and lose their scarce market.

Second, older friends are not very suitable for short term. The author is not biased against older friends, but because the short-term operation requires bright and quick, many stock market will not last for a week.

Third, people who are indecisive in character are not suitable for short term. Chinese are deeply influenced by Confucianism, Taoism, and ink.

The doctrine of the mean brings us calmly thinking, but often slow down.

Reflected in the stock market is the implementation of the trading signal is not firm, in hesitation missed the best time;

Fourth, those who can not obey the rules are not suitable for short line. I mentioned a very important point in the essays: traffic lights rule. In many cases, traffic accidents are not caused by driving technology, but because they do not obey the traffic rules.

In the stock market, we often have fluke psychology, often with unreconciled psychology, which leads to hesitation when buying, and it also hesitates when we sell, so we miss the best opportunity.

These four kinds of people are not suitable for short-term operation. We can examine ourselves whether they belong to one of the four mentioned above.

Two, "we can carry out any short-term operation at any time".

Some friends think that the market is full of opportunities every day. The stock market is an ATM. Whenever it has the ability, it can withdraw money at any time.

Such confidence is a good thing, but we have to seriously analyze the market and allocate our limited funds seriously.

There are not many short - term opportunities in the market for more than half a year. Most of the time, we are hard at the top. Occasionally, the one or two success needs to be paid.

In my opinion, sometimes we might as well try to avoid the edge of it.

First, the market does not make short lines when the main waves rise. Because the relatively few callbacks in the main wave stage, many stocks will run like mad cows.

If we still have short thinking at this time, we will not go out halfway and miss the best rising bands.

Second, when the market bottoms up, most of the money in the hands can not be taken as a short line. This is not to say that when the bottom is built, we can not rebound. It is just where the bottom is, no one knows, and if we take all the money, we will lose more.

In the unilateral market, short selling is just like "tiger's mouth pulling". It's quite dangerous.

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Three, "Feng Shui turns around".

We all believe that "Feng Shui turns around". Is it true that Feng Shui turns around in the stock market?

After a wave of market moves, although almost all stocks will show up, the rise in stocks will be much higher than that of stocks. The most tragic thing is that a handful of stocks will be spurned by the main force and become the "eternal pain" of many stocks.

Therefore, we should pay attention to two points in short-term stock selection.

First, we must dare to chase the leading stocks.

Leading stocks are often the main forces stationed in the area, strong and strong, as long as the trend has not been destroyed, there will still be upward momentum.

Second, we must pay attention to the trend.

There is an old saying in the stock market: "the novice looks at the price, the old hand looks at the quantity, the superior looks at the potential", that is to say, only the strong stock, only then has the strong upward momentum inertia.

"Go with the flow" instead of "going against the trend". This is the rule that can be applied in any field.

Four, "make money every time".

Speculation is a probability of success, no one can make one hundred percent money, no one dare to assert that every operation can make money, especially in the short line, no one in the world dare to say that he earned money every short time operation.

We can only say that more methods, better ideas and perseverance can only increase the probability of success.

First, in a wave of rebound prices, 10 operations, 5 successful, 2 to 3 times tied, is already quite good results.

You can't fight too much. You must stop when you stop.

Second, the method of speculation is very silly, especially in the short term operation. The author does not like to set up 10% or 8% stop loss or surplus position. I like to set up an expectation before buying the stock. If I achieve the expectation, the holding time can be a bit longer. Let's see if there is a better opportunity in the future market. If we are different from our judgement, we must go away.

Third, we must not build too big a goal if we accumulate a small amount of money, accumulate piles of sand, and make less efforts.

I have a friend who is very stupid in making stock, but he can make big money in bull market and lose money in bear market.

What is the 5% principle? That is, the 5% principle has risen 5%, resolutely left, down by 5%.

As long as we can hold the hot spots and directions, we can have a high probability of success even if we catch up with the ups and downs. Especially when the market is better, there are a lot of opportunities to make money.

The four big mistake is our short term money making "stumbling block".

The ancients liked to talk about positive and negative ways, to see what advantages and disadvantages of positive ones do.

There is a well received phrase in the sales industry - "to put the benefits in the right place and to tell the pain", which means that our customers should not only know the merits of our methods, but also let them know that they are not doing the same.