Intraday short-term trading is a trading mode, which mainly refers to a trading method that holds a position for a short time and does not leave an overnight position. It is very suitable for the margin market with trading leverage. Intraday short-term trading captures the trading opportunities that can immediately break away from the cost of entering the market after entering the market. If you can’t make a profit immediately after entering the market, you are ready to leave the market quickly, do not increase your position, do not cover your position, or go against the trend. Because this intraday short-term trading method has a short time in the market, the risk of market fluctuations is lower. At present, there are some domestic traders who use this trading method to achieve stable profits and success.
Basic principles and operating skills of intraday short-term trading.
- The concept, advantages and disadvantages of intraday short-term trading
Different understandings of speculative markets have resulted in different trading methods. Intraday short-term traders believe that due to the influence of many factors, market price fluctuations show great uncertainty. Market forecasts are very difficult, and the longer the price forecast, the more impossible it is. Relative to the short-term market Trend prediction, due to relatively limited factors affecting prices, small relative errors and high accuracy, and short-term market fluctuations are mainly affected by traders’ speculative behavior. In the short term, speculative individuals are relatively fixed, and the fixed characteristics of speculative behavior are more obvious. This provides a reference for short-term traders to predict the market. Advantages of intraday short-term trading Due to the short holding time, some unpredictable market risks are avoided, so the trading situation is relatively stable. The disadvantage is that you have to concentrate on watching the market every day, which is more troublesome and requires higher overall quality.
According to the holding time, there are two types: intraday short-term trading and intraday ultra-short trading. Intraday short-term holding time is generally about 1-5 hours, and the longest time is no more than 10 hours. The number of transactions per day is relatively small; intraday ultra-short trading The holding time is shorter, the general holding time is 1-2 minutes, the short is no more than 10 seconds, the longest is no more than 15 minutes, and the number of transactions per day is more. Capture the trading opportunities that can immediately break away from the cost of entry after entering the market within a short period of time. If you cannot make a profit immediately after entering the market, you will be prepared to leave the market quickly without increasing your position, not covering your position, or going against the trend. Because this trading method has a short time in the market, the risk of market fluctuations is lower. Intraday short-term trading is a trading method based on a period of obvious trend swings in the day, which basically belongs to the category of trend trading, and the frequency of trading is significantly lower than that of intraday ultra-short-term trading.
Advantages of intraday short-term trading Because the holding time is short, only a small amount of money is made, and the risk of holding a position overnight is not assumed, it is more suitable for a 24-hour non-stop trading margin market. Due to the short holding time, some unpredictable market risks are avoided, and the trading situation is relatively stable, which is loved by the majority of small and medium investors. Its disadvantage is that it has to concentrate on watching the market every day, which is more troublesome, and it has higher requirements for its own comprehensive qualities, such as execution ability and error correction ability, and trading discipline.
- The principles and discipline of intraday short-term trading
First of all, we must establish the idea of small profit trading and compound interest income. Don’t be greedy in the short-term day. Set yourself a reasonable profit margin. When you reach your goal, you must be out immediately. No matter how much profit margin there is, you can re-evaluate the market’s ups and downs and wait patiently for the next trading opportunity given by the market. . You can’t make a fat man with one bite, but a fat man eats one bite at a time, and only makes the most sure transaction, to ensure that the success rate of each transaction is accumulated. Just imagine, as long as you earn 30 points a day, you can earn 600 points in 20 trading days a month, and your account can be doubled several times after a year. This kind of compound interest growth will be so impressive after three to five years.
Second, respect the market and conform to the market. Intraday super short-term traders cannot prejudge the market, and put aside preconceived ideas completely, and only when they are empty-hearted can they accept and integrate into the market. Do not have preconceived judgments on the market, and completely abandon subjective judgments on trends. The speculators will only make small fluctuations that they can grasp, reject the overall situation, do not pursue huge profits, and only focus on the smallest changes in the market, based only on short-term The slope of the movement direction of the moving average, the ups and downs kinetic energy displayed when the K line fluctuates, and the strength and weakness of the MACD red and green bars follow the trend to trade. Trading orders based on intuition. If you miss this time, wait patiently for the next opportunity! Traders must always maintain their humble attitude in front of the market. We will always be insignificant in front of the market.
Third, we must select trading opportunities that are in line with our trading principles and familiar to ourselves, and do not fight unsure battles. If you can’t make a move, you will win. Intraday ultra-short due to thin profits, it is particularly important to rely on the success rate of shots to win. Therefore, stop loss must be strictly set, and short-term growth must not be used. Like other types of trading methods, controlling risk is also the top priority of intraday ultra-short. For example, ultra-short days is like playing guerrilla, gaining tangible profit as the starting point and ultimate goal of the transaction. If you win the fight, you will retreat if you fail to win, save your vitality, and wait for the next opportunity. Don’t make a deal. It took a day to go.
Finally, the discipline of intraday trading is very important. We must formulate disciplines that are conducive to trading and profit to restrain ourselves. Do not trade during periods when the market is not active, do not do transactions where there is no profit space, do not do transactions when there is no fully grasped opportunity, do not do transactions when there is no clear stop loss position, stop profit and stop loss must be decisive, and not procrastinate . In addition, when you must fix the opening unit, always trade according to the fixed position. The position ratio is kept within 3%-5% of the total capital. It is easy to relax the mentality when trading in the wet position, and there will be no trading in this way. Too much pressure.
- The mentality needed for short-term exchanges in the day
Calm and graceful, open the software and let the market show itself in front of you every second. If the market has a trading opportunity that suits you, you can intervene in time. If you win, you won’t be overjoyed. If you lose, you won’t feel disappointed. Essentials, there is evidence for advance and retreat, nothing more. This is the life of a speculator, who cannot be affected by things outside the market.
The main reason why most people do simulations better than actual combat is discipline and mentality. In actual combat, there was no discipline, an uneasy mentality, and I wanted to make a profit, and I was eager to get it back if I lost money. The transaction was chaotic, the advance and retreat were lost, and the transaction was not successful. You must establish the concept of trading according to your own rules, and you will not regret whether you win or lose. You must not be afraid of death when you are a soldier, and you must not be afraid of losing money as a trader. As long as you follow the rules, you will have no regrets. As the saying goes, what kind of mentality determines how big a career is. The ancients said that the metaphysical is the Tao, and the metaphysical is the artifact. In the transaction, the metaphysical is the market concept, transaction concept and the like, but also a person’s mentality and tolerance. The metaphysical is something like skill.
One is Linda Bradford, a large-scale intraday trading agency managing US$1 billion in the United States. She said that as long as you keep trading in accordance with the rules, you will eventually make money. Therefore, implementing the rules without compromise and correcting errors in time to improve the success of intraday short-term trading may be the only way for retail investors to make stable profits. Intraday short-term trading reduces the time in the market, and most of the time as an outsider observes the market, reducing the paranoia of the market due to holding positions in hand, so the psychological burden is light and the view of the market is more objective, so it is easier to succeed than other trading methods . In addition, the ability of small funds to resist risks is relatively poor, and it is not suitable for long-term operations, thinking that it is impossible to adjust the position structure reasonably. “Scramble orders, the more you fry, the easier it is.” This is the truth!
It is inevitable to lose money in the short-term speculation. Don’t be angry with the plate. Make preparations as soon as possible for the list that feels wrong. Don’t wait until the loss is big and then cut again. When you lose, you have to shrink. The more you cut, the happier you will be, because you can get rid of bad luck at one time and find your own rhythm earlier. Give up what you should give up, grasp the market that you can grasp, give up on the market that is not within your ability, and only focus on the part of the market that you can grasp. In my philosophy, there is no need to judge how the market goes, and don’t believe it. Let the market speak for itself. We only learn to observe patterns and follow the trend. Don’t just believe in your own feelings, because your own analysis of the board is subjective and will affect the direction of your order! Why can’t so many people stop loss in the first place? Because they study too much and are too confident, causing confusion when trading.
- Summary of the experience of short-term trading experts in the day
The strategy of intraday short-term trading is to use the shortest time to grasp any opportunity for meager profit. If you want to make money in trading, you must “make rules, enforce rules, obey discipline, and have a peaceful mind”, and be able to overcome your own personality weaknesses and common weaknesses of human nature when appropriate. When trading, he is more like an athlete. His trading is based on instinctive reaction rather than thinking. When the skill is up to the body, the heart forgets it, forming a kind of conditioned reflex, and knows what to do when you see it. , Stop loss and stop profit calmly.
Of course, the sense of play does not mean everything, but if you have a good sense of play in the short-term, you may have everything. I can first assume: the market is rising or falling, and then I will verify step by step, such as tentatively making 0.01 lot orders. If the market operates as I expected, it will be overweight. If it does not operate as I expected, stop loss! I can’t passively wait for the market to prove that I am right before opening a new position. At this time, the profit of opening a position is already small. I did not have the cost to wait for the market to prove that I was wrong before closing the position. At this time, closing the position has already lost a lot. Trading sense is very important for traders, especially short-term trading sense, which is practiced with one hand and one hand. It means that the order can be profitable within 10 seconds after entering it.
For an ultra-short-term trader, always keep in mind the word “short”. If he makes money, he has to go. If he doesn’t make money, he has to go. If he loses, he has to go even more. Never hold any loss-making orders, and always add weight to profitable positions. In a sense, this is the whole truth of trading. However, in reality, many investors make profitable lists into ultra-short-term, but loss-making lists into medium and long-term, which completely violates the short-term principle. Therefore, the daily short-term discipline is very strong. First of all, you must determine the amount of each order you place according to your financial strength, psychological endurance and other factors, and do not change it easily. Uncertain signals, do not open a position to enter the market, learn to give up risky opportunities. Never hold positions overnight, never increase positions against the trend, never lock positions, never lose money. Keep good trading habits, don’t take anger, don’t get lucky, learn to rest when you reach your profit target.
When the market permits, the larger the trading volume, the better, and the shorter the trading time, the better. Only in this way can we use less time to take a lower risk and make more money. Strive to be a trader who gets meager profits and uses compound interest to grow bigger and stronger. Enter the market when you see the opportunity, earn a little at a time, earn little by little, accumulate less into more, act according to the principle of earning meager profits, use compound interest to accumulate wealth, eat fat by bite, and finally gather wealth into A sea of money.
- How to do a good job of intraday short-term trading
When doing intraday short-term trading, only choose the “hottest variety” that has the largest volume in recent days, continues to increase in open interest, and leads the rise in the uptrend or the decline in the downtrend. Varieties that do not have a large volume will not be accepted. Look, don’t do it. In addition to choosing large-volume varieties, when doing short-term trading, you must also choose a good time period for trading. Only when the market has a big yang line or a big yin line that starts up and down, the market will experience greater fluctuations. If you do short-term trading in the absence of market volatility, it is difficult to achieve the effect of making a profit after opening a position.
Do not have any subjective or artificial sense of direction before placing an order. For each entry into the market, you must consider the stop loss level “in advance”, set a stop loss price after entering the market, and do not care about profit or loss or price when entering and exiting the market. High and low. Since intraday short-term trading only needs to grasp the direction of a daily K-line of the day to make a profit, you do not need to pay too much attention to the long-term trend of the market. You only need to track the short-term trend of the hourly and 15-minute K-line charts and follow the trend. Up. And to use different cycles to observe alternately, the short cycle obeys the basic idea of long cycle, there is a general trend in the chest, and the homeopathic operation should be kept in mind.
Give up what you should give up, grasp what you can grasp, give up what is not within your ability, and only focus on the part of the market that you can grasp. In my philosophy, there is no need to judge how the market goes, and don’t believe it. Let the market speak for itself. Why can’t so many people stop loss in the first place? Because they study too much and are full of confidence, they only believe in their own feelings and are affected by subjective judgments, because their analysis of the board is subjective, which will affect the direction of ordering, and even fall into the extreme error of dead long and dead short. When the market trend reverses, it does not stop the loss in time, but increases the position against the trend, which will cause confusion in the transaction over time.
I am a lone single-handed short-term speculator. I only rely on my own sense of play and never analyze after the market. Don’t take the risk of holding positions overnight and make a little money. Do not buy the bottom, do not catch the top, this is a contrarian trade. I only chase longs and shorts after the trend is established, and follow the trend. The real follow-through is that in an uptrend, when the K-line is rising against the moving average, go long and strictly set the stop loss. In a downtrend, when the K-line is falling against the moving average, go short and strictly set the stop loss.
- Use the 5-minute candlestick chart to accurately attack
Formulating rules and implementing rules are the two major factors for doing ultra-short-term trading. Trading rules are a method with a high success rate summarized from practice. It is a successful rule based on a complete trading system, including clear position opening signals and stop loss and take profit signals. After formulating the trading rules, it is necessary to filter out some signals with low success rate according to analysis tools such as the moving average system and K-line combination and MACD red and green bars, and then to detect the signals keenly and execute them mechanically. Achieve better results. The execution rule is to abandon all self-subjective judgments, and completely mechanically open positions and stop losses according to the signals sent by the system. Even if there are continuous errors, there is always no doubt and hesitation. When the system sends a signal again, it still executes the signal decisively. For most investors, what is lacking is not the technology and trading system, but the lack of mechanically executing the buying and selling signals issued by the trading system, thus missing waves of majestic market.
When doing intraday short-term trading, we can grasp the timing of entering the market according to the trend resonance of the large and small periods. The principle is: “use the large period to find the market direction, and wait for the opening signal in the small period.” For example, when the hourly moving average system is in a long arrangement, the short-term trading direction is dominated by bargain hunting. As long as the 5-minute moving average system is at the end of a short trend and the green column under the MACD zero axis begins to shrink, you can do light positions. In particular, MACD forms a second golden cross at the low position below the zero axis, and you can boldly do more on dips. This is called “more than the end of the dark”, which is a contrarian trading method of bottom hunting. As long as the 5-minute moving average system forms a long arrangement, after the MACD double line crosses the zero axis, you can go long with the trend. This is called “long long”, which belongs to the right-hand homeopathic trading method. When the hourly moving average system is in a short position, the short-term trading direction.