The core elements that require close attention in short-term trading are as follows:
First and foremost, it is crucial to thoroughly understand and clarify the current market trend characteristics. Judging whether the market is in a unidirectional trend or a range-bound state is fundamental, as the operational strategies under these two market conditions are vastly different. A unidirectional trend has its specific operating rules, while a range-bound market exhibits characteristics of repeated fluctuations. Clearly distinguishing between the two can provide directional guidance for trading decisions.
Secondly, short-term trading should not overlook the grasp of the overall trend. Even in short-term operations, aligning with the direction of the major trend is key to increasing the success rate. For example, when the market's major trend is upward, the primary strategy should be to buy on dips (long on lows), which serves as the basic framework for short-term trading.
Finally, precise judgment of entry points is a core element of successful short-term trading. Ensuring the accuracy of entry points can minimize the initial loss risk, avoiding situations where one is stopped out due to slight fluctuations. Accurate point selection can also quickly place trades into a profit state, effectively managing trading psychology and preventing panic and decision-making errors caused by prolonged floating losses. Consistent small profits accumulation is the cornerstone of achieving long-term stable profits in short-term trading.
In summary, short-term trading must closely integrate precise judgment of current market characteristics, profound insights into overall trends, and exceptional point selection ability. These three aspects complement each other and collectively constitute the key path to success in short-term trading.
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