Many people like to do short-term trading when investing in stocks, maybe because they think short-term trading is easier to grasp and make money faster. But in fact, short-term stocks are not so easy to do. If you want to improve the success rate of short-term trading, you need to master some principles and opportunities for short-term operations.
What are the principles for short-term buying of stocks?
First of all, buy the strong but not the weak. The strength and weakness here in not only talk about stocks , but also talk about the entire stock market. Because the short-term holding time of stocks is relatively short, the stock price needs to rise quickly after buying to make the trade fair successful, so the trend must be focused.
It is obvious that in a strong market, most individual stocks mainly rise, and it is easier to rise in the short term after buying stocks. It is not easy for stocks in weak markets to rise quickly, unless the stock market just happens to bottom out.
In terms of probability, buying stocks in a strong position is definitely greater in the short term than buying stocks in a weak market. Therefore, buying stocks in a strong market can make short-term stock trading easier to achieve success.
Secondly, buy small or large . The big and small here mainly talk about the size of the stock market value. Generally speaking, stocks with relatively small circulating market value of are more likely to rise sharply in the short term.
The rise and fall of a stock is just the result of a capital game. If you actively buy more funds, the stock price will rise, and if you actively sell more funds, the stock price will fall.
The size of the circulating market value will largely determine the amount of funds needed to drive the stock price to rise. Obviously, stocks with large market value circulating usually have a relatively large trading volume, so there will be more funds to drive the stock price to rise, and it will be even more difficult for the stock price to rise sharply in the short term.
However, at this point, it can only be placed in the same type of stock. If it is a different type of stock, it may not be very suitable because of different characteristics.
Again, just buy high or low. The high and low here in mainly talk about the turnover rate. The turnover rate can reflect the degree of activity of a stock in the short term. The more active the stock, the more chance it has to earn the difference profit in the short term. Therefore, when doing short-term stocks, it is best to choose stocks with a higher turnover rate instead of those with a lower turnover rate.
So, how should we grasp the timing of short-term buying stocks?
How to seize the opportunity to buy stocks in the short term?
First of all, buy when you break through. The rise and fall of stock prices are generally wave-like. For a strong stock, every wave of rise, the stock price usually breaks through the high point of the previous wave of rise, and keeps rising like an upward ladder.
Therefore, when the stock price breaks through the high point of the previous wave of rise, it may be a signal of a new wave of rise, and it is also the time to buy stocks in the short term.
Secondly, buy after a pullback when the bullish signal appears. A stock in an upward trend is generally unlikely to keep rising, and there will always be a pullback.
However, many times it is difficult for us to judge whether the stock price is pulling back or has reversed. At this time, we need to wait for the bullish signal to appear, such as the bullish pattern of the K-line. When bullish signals appear, it is the time to buy stocks in the short term.
Again, it is to choose to buy at important support levels. buys at an important support level, which means buying when the stock price pulls back to an important support level, without waiting for a bullish signal to appear before buying. The advantage of this buying method of
is that you can get a better entry position, because the opportunity to buy stocks in the short term may be fleeting. If you wait until the bullish signal appears before buying, you may miss the best entry time. The flaw is that it needs to bear the risk that the stock price may fall below the support level of .
