Brothers, hello everyone, I am trader Zhu Yici. This is a series of articles, mainly recording my thoughts on trading. Today’s content mainly focuses on ultra-short-term operations.
Before ultra-short-term trading, first check the overall market conditions, which is just like checking the weather before going out. As a die-hard bull, you should do more when the market is good, as it is easier to make money at this time. When the market is bad, learn to go short and do not participate in any pullback. Developing this habit will invisibly avoid many risks. Put risk awareness before profit desire, and don't be afraid of missing opportunities, because there is never a shortage of opportunities in ultra-short-term trading. What is lacking is your ability to seize opportunities when they come.
It is crucial to maintain the initiative in ultra-short-term trading. This initiative is your ability to attack at any time. The opposite of initiative is passivity. When you are deeply trapped, even if you see a great opportunity, you can only miss it. In order to maintain the initiative, you must make good use of the stop loss tool. When a small loss occurs, stop loss in time to avoid being deeply trapped. When a profit is generated, raise the stop loss line to lock in part of the profit and prevent the profit from turning into a loss. You can close the existing profitable order at any time to chase the next opportunity.
In ultra-short-term trading, we must abandon the awareness of anchoring costs. There is no top or bottom in mind, only direction. Buy when bullish and sell when bearish. The simpler the trading logic, the better, because simplicity means easier to execute. What we pursue is not low cost, but the next direction is bullish and can generate profits. What we trade is upward fluctuations.
What is important in ultra-short-term trading is not predicting the market, but how to respond to it and make various plans, knowing what to do if it goes up and what to do if it goes down. In this way, you will not be led by market sentiment in the ever-changing market and can execute the best solution as quickly as possible.
Finally, it is the unity of knowledge and action. We should constantly implement the cognitive methodology in practice, practice makes perfect, develop the fastest reaction ability, and truly integrate cognition into transactions.
By doing the above, you can control the drawdown and avoid large fluctuations in account funds to the greatest extent. The capital curve will be steadily upward, and compound interest will exert its magical power.