If the principal is less than 100,000 and you are keen on short-term trading, you must read this note several times and remember the following 4 key short-term techniques! The text is brief, but the value is immense; understanding it can save you several years of detours!
First, do not rush to sell when the morning market drops; increase your position at a low price with T+0. If the stock price drops in the morning, there is no need to rush to sell. Instead, take the opportunity to buy more at a low point, which will lower your average cost. When the stock price rises later, you can sell for a profit in the morning. This operation can refer to the 5-minute and 15-minute K-line charts to find the low point.
Second, when there is a significant rise in the afternoon, it is advisable to reduce your position; if there is a significant decline at the close, consider buying the next day. If there is a substantial upward trend in the afternoon, be sure to reduce your position; if there is a significant drop at the close, then consider building a position to buy the next day, as there is usually a higher probability of a lower open and a higher close the next day.
Third, how to judge the strength of a limit-up? Observe the intraday chart; if it is locked at the limit-up before 11:30 AM and remains closed all day with large orders, it indicates strong momentum; if it is locked after this period, the stock is weak. Avoid touching stocks that only lock up near the closing bell, as there are often tricks involved when the stock is pushed up at the close.
Fourth, controlling drawdowns is key. Most retail investors find it a hundred times more painful to miss out than to be trapped. They always fantasize about seizing every opportunity, yet the market is always there, and opportunities arise every day. After making a big profit, it is easy to become arrogant; one must know that pride leads to downfall. If there are no excellent opportunities, it is wise to take a break for a day or two and secure your profits.