Know your enemy and know yourself.
First, take a comprehensive and objective look at your situation and formulate a strategy.
If the amount of capital is small and medium-sized (50,000-200,000), and can be engaged in a full-time, energetic, skilled, self-control ability is strong, it is more suitable for short-term speculation within a day.
The next step is to develop a strategy.
1. For short-term operations, we must pay close attention to the market and place orders at market prices as far as possible.
Follow the trend and stop your losses strictly.
Because it is a short day, our main idea is to follow the technical trend of the day.
Therefore, the closing price of the previous trading day has important technical significance.
Usually, below the previous day’s close short, up the previous day’s close long.
2. The timing of entry is mainly based on short-term technical indicators, especially CDP indicators.
Stop-loss prices are usually chosen based on early highs and lows and short-term moving averages.
3. Short-term trading is more suitable for trading in consolidation, with short selling at the upper edge of the cyclical price range and long trading at the lower edge of the range.
In EXTREMELY BULLISH AND BEARISH TRENDS, WE SHOULD AVOID OPERATING AGAINST THE broad trend because technical indicators may be blunted and the trend changes rapidly.
We should be in the short – term trend in a single direction to control risk.
About the number of transactions.
If the first deal is successful, you may consider making a second one, but you should be careful at this point.
Losses usually occur in post-profit trades.
You can’t be careless about winning.
One minute’s rash decision will bring you a week’s worth of misery.
When it comes to making a third or fourth deal after a successful second deal, it all depends on your personality.
As a general rule, I think it’s best to stop trading that day if you get it right three times in a row.
If the first trade ends with a stop loss.
Remember not to rush into the second transaction.
At this point, you should calmly consider whether you see the wrong direction.
If not, is the entry point not well grasped and not blocked by short-term fluctuations?
When YOU HAVE FULLY ANALYZED THE trend, then slowly consider the second trade, but you must do, your trade must be half position.
If this half position trade is ideal, you can move on to the next trade, but it is still a half position.
But if the first and second stops end.
You should definitely stop all trading for the day.
As Europe’s energy crisis intensifies supply constraints, oil prices have enjoyed a third straight pre-Christmas rally and gold has held steady.
Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.
