Where are the secrets of short-term speculative trading?
Short-term trading profits come from emotional premiums and liquidity premiums; this is the logic of short-term speculative trading. The biggest taboo for short-term speculative traders is analyzing the intrinsic value of the underlying assets. In the eyes of short-term speculators, stocks have no good or bad; they only care if there is capital inflow, if there are dazzling themes, and if it can attract attention.
Those who engage in short-term trading do not analyze or predict; they only follow, following the hot money. They focus on those with good liquidity and significant capital participation, the hotter, the better; the larger the capital, the better; the greater the volatility, the better; the faster the rise, the better; never fear heights.
The most important aspect of short-term trading is the environment, the market atmosphere, a keen perception of market sentiment and human nature, while also going against human nature. Never let the market set the pace; actions must be decisive, without hesitation. If you sense that the atmosphere is wrong or the sentiment is off, walk away immediately. To trade short-term, you need a certain risk tolerance, a margin for error, but also a bottom line.
The technical skills to do well in short-term trading are really secondary; the most important thing is the ability to control emotions and desires. Don't get excited when making money, and don't get depressed when losing; always maintain objectivity, calmness, and rationality. Be able to not expect, not fear, not regret, and not get tangled. There is no perfection in trading; it is a constant state of missing out. It’s either buying too early or selling too early; that is the norm. Buying at the right time and selling at the right time is abnormal; it’s just an accident, don’t take it seriously.
Making money in a bear market is relatively difficult, while making money in a bull market is much easier. However, whether you can ultimately make money does not depend on whether it’s a bull or bear market, but on yourself, your temperament, your understanding, and your ability to control your emotions and desires. Most people engaged in trading always focus on learning methods and techniques, neglecting the most fundamental aspect: the growth of their own temperament.