After three rounds of bull and bear markets, I have summarized several key points for short-term trading;
First, learn to stop loss
I remember that a coin was 17 when it was launched. When it fell to 9 US dollars, my friend saw that the price was very low and the fundamentals were also great, so he bought the bottom and intervened. In the end, the coin fell to a frightening 2 US dollars. When buying a coin, we must make a good plan. If it is not as expected, we must resolutely leave the market and not take chances, otherwise we may get deeper and deeper.
I remember a big guy said; there are no immortal masters in the financial market, and there is no need for these. The market only needs excellent strategies and strong execution, that is, if it reaches the stop loss position, it must be able to take action, which is strong execution.
Second, position management
If the market is good, hold a heavy position, and if the market is not good, clear the position or go short. Some people have learned technology for several years and feel that they can beat the market. No matter what the market is, they are fully invested. Like the situation this month, almost every day there is a general decline waiting for an increase, no matter what technical analysis is. Theoretical logic will fail, and no eggs will be intact when the nest is overturned. Don't go against the trend.
Third, master one mode
It is better to master one mode than to know thousands of modes. There are many market opportunities, and it is impossible to grasp every one of them. You need to know what kind of operation mode is suitable for your personality, find an operation mode that suits your characteristics, and do it thoroughly.
Fourth, grasp the rhythm
How wide and long is the pie horizontally? When a sector starts, you need to be able to distinguish the size of the opportunity. Will it last for three to five days or three to five months, or even one or two years? For example, the#MEMEsector during this period lasted for several months. If the rhythm is not right, and you do short-term trading in it, then such a big opportunity is basically out of your reach.
Fifth, position management
Learning to split the position is the first thing to learn when entering the market. Only when the position is configured and held can you maintain a good mentality. If you have a full position of a coin, you will stop loss when there is a slightly larger shock. This is a way for the main force to wash the chips. If the position is light, it will be completely different. No matter how you shock, my heart will not be shocked.