Short-term Gold Grab: How to Become a Professional Short-term Trader

Author: Wang Dufa / Country: Mainland China
Publisher:
Publish Date: 2005-11-01
Features: Want to achieve success in the stock market in a short time? This book brings you the winning secrets of short-term stock investment, including the judgment criteria, technical tools, psychological structure, capital management, operational strategies, risk protection plans, success paths, and short-term market analysis of professional short-term traders. It allows you to enjoy the joy of winning and watch the stock market. This book covers the judgment criteria, technical tools, psychological structure, capital management, operational strategies, risk protection plans, success paths, short-term market analysis, short-term technical indicators, and their traps of professional short-term traders.
(3) Principle of Reinvestment Operation
Reinvestment behavior cannot occur among master-level professional short-term traders. Under normal circumstances, the occurrence of reinvestment indicates certain flaws in the investor's operational thinking and methods. Any reinvestment operation must be based on thorough planning and deep consideration. Some reinvestment actions justified by extremely large price declines or low valuations are not advisable in actual combat.
(4) Principle of Stop-Loss Operation
Professional short-term traders are human, not gods, and minor errors in actual operations are normal. However, what is more important is preventing further deterioration of the situation. Stop-loss operations, like reinvestment operations, must be based on prior plans in real-time trading. Since stop-loss actions mean acknowledging self-investment losses and mistakes, they are a form of self-purification that requires extraordinary courage and bravery from investors. In real-time trading, one must overcome weakness when cutting positions and eliminate fantasies before cutting positions. Only by daring to wield the "stop-loss sword" to "cut off one's own arm" can one preserve the rest of the body. Losing an arm but saving the rest still leaves room for a comeback.
(5) Principle of Mind Control
The essence of securities investment is to fight against one's own stubborn soul. Stock trading is ultimately about trading mentality. The final of master-level traders is not about investment skills but about psychological control. Who can successfully overcome their inner demons and human weaknesses is the hero. Professional short-term traders maintain immense patience before market profit opportunities arise, carefully discern opportunities when they appear, boldly pursue them with extraordinary determination once they are confirmed, and dare to correct themselves when operational actions deviate from market changes. Only with a sound mentality can professional short-term traders achieve invincibility and victory.
VIII. Mastery of Stock Market Theories
Mastering stock market theories is a crucial guarantee for professional short-term traders to achieve success in actual combat. Possessing advanced stock market theories is the key factor for professional short-term traders to win. A qualified professional short-term trader must have a mature stock market theory to arm themselves. Stock market theory is a comprehensive understanding and comprehension of stocks, the stock market, and market conditions. Stocks are the carriers of money and chips exchanges, serving as tools for investors to trade. The stock market is a game of competition between major institutional players and ordinary investors, where professional short-term traders create wealth. China's securities market was born in a special environment, and the majority of investors must end up in losses. Only the losses of ordinary investors can sustain and develop the market. Professional short-term traders are the elite of the market, harvesting the fruits of victory based on the losses of retail investors. Stock market theory is a strategic thinking that restricts specific operational methods and techniques. Professional short-term traders must have a profound and unique understanding of the securities market and establish an advanced stock market theory. Stock market theory mainly includes the following content:
A practical operational model. The value movement laws of the securities market are the core model of investing in stocks. Professional short-term traders continuously summarize operational experience in actual combat and form practical operational models based on it. They develop operational strategies according to these models, and the practical operational models are also constantly improved and refined.
A sound psychological state. Investment mentality is a human problem that requires not only intellectual nourishment but also practical life experiences. Facing the same things, different psychological states will lead to different perspectives and outcomes. Cultivating a good mentality involves personal cultivation and character, requiring long-term practice to achieve. Stable returns come from stable mentality control. P16-17