Short Term Operation Should Avoid Eight Taboos

Nothing can be accomplished without norms and standards, Short-term The same is true of operation. Some operational principles require us to execute unconditionally, and short term operations without principles are doomed to failure. Short term operation is a kind of operation with high technology content. It pursues the maximum profit in the shortest time. If it does not operate aimlessly, it can not achieve the purpose of short term operation. From many years of actual operational experience, I summed up the following eight taboos, each of which is a dead hole in short-term operation, and if violated, it is possible to cause heavy casualties. loss 。

(1) intervene in stocks that are not trading volume.

Short term operation is the pursuit of time and speed, volume represents the operation of the market energy, volume is difficult to achieve short-term stock prices soar, of course, we can not deny that there is no volume of stocks will not rise, some of the finishing stocks, volume contraction only represents the short-term accumulation of potential, but the possibility of rising is very large, but we can not grasp these stocks in the collation of the trend when stocks rise, some stocks may be sorted out for a long time, so for some types of stocks, it is best to wait and see, and so on after the trend is clear. For some stocks in the rising trend, if not the high control panel, the shortage of volume is difficult to ensure the sustainability of the trend. The sustainability of the trend is worth our suspicion, and the trend is likely to reverse at any time. There is no trading volume of stocks indicating that the main force is not enough. Such stocks are likely to rise and fall. It is certainly not sensible to make money in uncertainty. Therefore, trading volume is the premise of short-term operation. If there is no volume, it is best not to intervene. Of course, there are exceptions to all kinds of things. We have talked about several kinds of state of unlimited upside. This kind of thing is only a small number, just a point, it can not represent a face, it should be treated differently.

(2) handle well shares For buying reasons.

Many short term investors' buying reasons for stocks are often based on fundamentals. This method is somewhat confusing. The fundamentals of stock selection may lead to good stocks. But it turns out that good stocks are not necessarily a good horse. Some good stocks may be dormant for a long time. The decline is also very normal. The stocks selected by fundamentals are not suitable for short-term operation. In the short term, the rise and fall of stock prices are not related to the fundamentals of the listed companies.

(3) no loss.

Short term no long wins general, stop loss is a short-term operation umbrella, there is no stop loss of this umbrella, short line operation can be said to be a failure, no matter how strong the analysis ability, can not escape the fate of failure, short-term operation does not stop loss is a very terrible method, the result of this operation will cause risk and income asymmetry, will expand the risk as much as possible, which is not consistent with the basic principles of investment. Some investors think they are experienced and do not stop, and the result is a heavy loss.

(4) making money short term, losing a long line, some investors are too low in the short term profit goal, making a small amount of money and complacent, but when they lose money, they always have to wait until they are unable to bear it. Then the operation also makes the same fatal mistake as a non stop loss, which is to make the risk and income unequal.

(5) frequent hype. I spent a lot of time in discussing the investment idea. I often said that I would not lose much of it. I have always stressed that I am not against short-term speculation, but I am very opposed to frequent short selling.

(6) to catch up and sell down, some investors who like to enter the market always like to catch up and sell down. This is a very immature method of operation. The result is self-evident. The so-called catch up and fall must be defined. If the initial intervention is not a catch up, the stock price just breaks through the pressure level, but it is the best buy point. The selling of the selling position is not a drop. The problem is that some friends always like to buy up after the boom, and then the stock price falls to the psychological collapse to stop the loss.

(7) against the market operation, many short term investors like to go against the market operation. This cheap way of operation will greatly reduce the success rate of operation. In the four major rules, we say that to follow the trend is the principle that short-term investors and long-term investors need to abide by.

(8) overweight on the wrong chips. If there is any mistake in the short-term operation, the best way is to stop the loss. Do not overweight the wrong chips. Some investors always like to lower the bottom cost after losing money, which is very undesirable.