Do not be trapped by the comfort and short-sighted cognition right in front of you.

A little frog was tired of living in the small ditch all year round — the water in the ditch was getting less and less, and it had almost no food left. The little frog kept jumping every day, trying to escape from this place. But its companions were lazily squatting in the muddy puddle all day, saying, "Aren't we still not starving to death? What are you in such a hurry for?" Finally, one day, the little frog made a leap and jumped into a big pond next to it, where there were many delicious foods, and it could swim freely.

The little frog croaked and called to its companion: "Come over quickly, this side is simply paradise!" But its companion said, "I have already got used to it here, I have been living here since I was a child, and I am too lazy to move!"

Soon, the water in the ditch dried up, and the little frog's companion starved to death.

Only by daring to break through its own circle can one possibly change its own destiny and have a broader development space. Those who stick to habits and are unwilling to break away from the accustomed track will never make a breakthrough.

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Stock trading is a metaphor for life, a game of mind and personality. Successful people are those who find the right methods and routines, overcome their own psychology, and the reasons for failure are all strange. Leaving the stock market in time and fully relaxing and resting can often be more rational and better grasp the opportunity to make money.

There is a sentence that summarizes the probability of profit and loss in the stock market: "one profit, two flat, and seven losses." To be precise, 95% of stock investors lose money, and only 5% of people can make money. Investment requires not only knowledge but also wisdom. Knowledge can be accumulated through hard study and reading a book, but this is far from enough.

Even many long-term professional practitioners are only accumulating knowledge in the long term, because they lack insight and cannot rise to the understanding of the laws behind abstract things. When stock trading reaches a certain level, the decisive factor for winning or losing is no longer the so-called skills and methods, but the concept and insight of the trader.

Stock trading is not as imagined, it is just a market. The reason why stock trading is difficult is because people are affected by emotions and complicated troubles.Trading is also an anti-human endeavor, where traders must go through a large number of transactions, a large number of failures, and a large amount of reflection to realize the side effects of their own human nature in trading, and then discover the truth and control their own human nature.

The market is formed by human participation. As long as we study human behavior clearly, we can find the breakthrough point and defeat the market. To succeed in the investment market, we need to use rationality to overcome nature at all times and eliminate self to the greatest extent! This struggle of self-discipline is much more difficult than the struggle with others!

Taking advantage of this weekend, Teacher A Yu roughly counted the fans who came to communicate and learn, and it seems that most of them like to do short-term trading. So, let's talk about the skills of short-term trading this time, with content that is easy to understand. If you don't understand, you can leave a message in the comment area, and the teacher is willing to help every friend who encounters difficulties.

Top Ten Skills for Short-term Trading

1. Quick entry and quick exit

This is somewhat similar to heating food in a microwave oven. After putting it in and heating, take it out immediately. If it takes too long, not only will the food be burned, but it may also damage the container. Originally, the idea of quick entry and short-term speculation resulted in a long-term trap, which is a losing move. Even if trapped, follow the iron rule and exit quickly.

2. Catch the leader in short-term trading

This is closely related to herding sheep. If the leader runs west, you can't go east. If the leader goes up the mountain, you can't jump off the cliff. If you can't catch the leader, catching the second leader is also good. The iron rule is not to chase the tail sheep, to buy high-priced and overvalued stocks, which not only run slowly but may also fall behind.

3. Increase positions when the market rises, and reduce positions when the market fallsThe principle is the same as the bicycle we ride every day. When going uphill, we pedal hard with all our might, and if we let go, we might fall; when going downhill, we hold the brakes tightly, with safety as the top priority. The iron rule is that once the brakes fail, we must abandon the bike to protect ourselves, otherwise, if we hit a car, it will be a dangerous situation.

IV. Even the worst stocks can rebound after a 50% consecutive decline

This is similar to riding a roller coaster, falling from the mountain top to the valley, and due to inertia, there will always be a certain distance of upward impact. Stocks that have been halved by major bad news, no matter how poor the fundamentals are, have a 20% rebound. The iron rule is that we cannot be infatuated, and we must decisively get off after the rebound reaches the resistance platform or fills two gaps.

V. Do not underestimate unpopular stocks in a bull market

This is like a football match in sports competition, where the strong team may not necessarily win the weak team, and colds often occur, because the ball is round. In a bull market, which big dark horse did not come out from an unpopular stock? The iron rule is not to be attracted to "red card unpopular stocks", as this may result in being penalized off the field.

VI. When the stock price falls by 8%, we should resolutely cut losses

This is inspired by the Chinese chess game, looking 7 steps ahead, and when in a passive situation, we must abandon the "pawn" to protect the "chariot", and only by preserving the funds can we have the possibility of turning the tide. The iron rule is that cutting losses is mainly to avoid systemic risks, and it is not suitable for technical adjustments, because a small "pawn" crossing the river is better than ten "chariots".

VII. Sell when there are three consecutive negative lines at a high position, and buy when there are three consecutive positive lines at a low position

This is like the weather forecast we must watch every day, with negative lines indicating a cloudy sky, and heavy rain is coming; positive lines indicate a sunny day with three suns. The iron rule is that the market manipulators will use this to wash the plate or continue to fall, and we should distinguish it in combination with the basic information of the individual stock.Eight, Stocks that go against the trend during a market crash

This is undoubtedly like swimming by the sea, only when the tide goes out can we see who is swimming naked. There are two possibilities for the naked: one is wearing an expensive "invisibility cloak"; the other is really out of money to buy underwear. The iron rule is that going against the market and turning red may be due to large capital holding the top, and the market will rise sharply afterwards; it may also be the market maker enticing more people to buy and pulling out the loan, the key is to see whether it will fall back.

Nine, Dare to buy stocks that hit the daily limit

The reason why chasing the daily limit is called the "dare-to-die team" is that it requires courage and adventure. This is like climbing a rock with bare hands, which is very dangerous, and if you miss a step, you will fall freely. When you reach the top of the mountain, you will have a commanding view of the mountains, and the wealth will increase rapidly. Because as long as the daily limit is sealed, there will be another daily limit. The iron rule is that before the continuous daily limit is opened, you must not let go, otherwise, you will lose all your previous efforts.

Ten, Buy stocks that are massively opened after hitting the daily limit

A huge daily limit, quickly opened by a large order, should be killed without hesitation. This is like watching fireworks in the night sky, first turning from green to red, and then flying into the sky. Under the huge amount, it is generally possible to go from the daily limit to the daily limit, and there is a 20% harvest on the same day. The iron rule is that the beautiful fireworks will soon become a fleeting cloud of smoke, and it should be immediately sold out at the next day's bidding.

Five criteria for short-term stock selection

1. Strong trend. As the saying goes, "the strong are always strong, and the weak are always weak."

2. If there is a strong main force involved. Active transactions, regular large orders, signs of artificial control, signs of protection and suppression at key points, rapid increase and shrinkage of trading volume, frequent articles recommending in newspapers and media, all indicate that the main force is not small.

3. If there is a potential topic. Short-term traders like to speculate on vague topics, regardless of whether they are true, as long as the market agrees. But once the topic is exposed, the speculation will end.4. Confirm that it is currently a hot topic in the market speculation. The most taboo in short-term trading is to buy unpopular stocks, but if unpopular stocks have explosive themes and the main force has collected them for a long time, they are also very likely to become the target of short-term traders.

5. Technical patterns support the continuation of the stock price increase. It is relatively difficult to grasp this point, but in general, avoid stocks where technical indicators show a top signal and a sell signal, choose fewer stocks that have entered the overbought area, and try to choose stocks whose technical patterns and technical indicators have just issued a buy signal.

Three Major Battle Techniques for Short-term Trading

1. The Rising Sun Battle Technique

Its theoretical definition is that after a continuous sharp drop in the stock and the overall market, the K-line combination is generally adjusted in the form of "three crows", with continuous adjustments in medium and long shadows and small shadows. When the bearish power is about to be exhausted, the bulls take advantage of the situation on the next day and counterattack, causing the stock price to open up with a gap, and close with a medium and long line with a bare head and bare feet, and the line completely engulfs the shadow line. We call this pattern "The Rising Sun".

2. The Limit-up Battle Technique

This battle technique is most suitable for friends who like to chase the rise, but it is important to pay attention to the theory of the battle technique, otherwise there will be the risk of chasing high. If there is such a stock, the stock price has risen sharply, but the volume is in a state of shrinkage or basically flat (it should be a large increase in volume normally), and the volume and price are in a state of divergence.3. The "Two Bulls Surrounding a Bear" Trading Strategy

It is important to note that this candlestick pattern often appears in the stock market, but why does it sometimes lead to adjustments when it appears? Therefore, you need to understand that it is only when it appears at the beginning and halfway through an uptrend that you can buy. As for the end of the uptrend, please resolutely refrain from acting and focus on observation. Now, let's discuss the content of the trading strategy. The "Two Bulls Surrounding a Bear" (Bullish Engulfing) trading strategy conditions: If you find a stock that is at the beginning or halfway through an uptrend and it shows a "Two Bulls Surrounding a Bear" candlestick pattern, it is a good opportunity to buy for short-term trading (once again, if you bravely intervene when this pattern appears at the end of an uptrend, the probability of a fatal outcome is 90%). What is "Two Bulls Surrounding a Bear"? It is simply composed of three candlesticks, with the left and right ones being medium to long bullish candles (preferably medium to long), and the middle one is a bearish candle (preferably medium to long), and the third candle should ideally close higher than the highest point of the middle bearish candle, making the attack more powerful. Note that the trading volume of the bullish candle should be larger than that of the bearish candle.

Extreme Trading is the Simplest Trading

A simple life is charming, a simple heart is happy, and simple trading is clear. Simplicity after experiencing vicissitudes and ups and downs is the ultimate in an extraordinary life. Learning to be simple is actually not simple.

A noble person often tells me that trading must have persistence and patience. At first, I could not fully understand the true meaning of it. But as I persist in walking in the right direction day after day, patiently waiting for each trading signal issued by the system to be executed, these two words have gradually penetrated my heart, becoming a habit, a habit that is completely integrated with my character.

Without experiencing the biting cold, how can you get the fragrance of plum blossoms? Without tasting the vinegar and ink of the world, how can you know the sour and sweet of life? All those who have a profound understanding have experienced being beyond salvation, breaking and establishing, being reborn in the dawn, and being reborn from the ashes, facing death and coming to life. If you are at the end of your rope, then you will be as unstoppable as a bamboo shoot!