A successful trader is inseparable from a successful trading system. A perfect intraday trading system should include the following elements:
1. Position opening method.
Intraday trading has the characteristics of short time and quick results, so there is a big difference between opening a position and trend trading. It is better to use the inverted pyramid plus method and the average plus method for trend operations, while intraday operations should be based on the principle of quickness and accuracy. Warehouse method and one-time warehouse building method.
A test position method
It is suitable for operations with a low signal accuracy rate. First, use 5% of the position to test. If the stop loss position does not break after a period of time, the basic trend shows no signs of being broken, and the price is basically still in the cost zone. You can evaluate the risk This method can effectively avoid large losses caused by mistakes in reading the market, and basically achieve stable profits.
B one-time opening method
It is required that the trader has a very high ability to read the market, basically to the point of not making mistakes. Note that what is mentioned here is not to make mistakes in reading the market, not to operate. On this basis, after a short period of time to build a position in place, the best part of this method of building a position is that the thinking is simple, and there is no need to think about overweight.
Both of the above two methods of building positions require fast and accurate, needless to say, fast, traders who have developed to an advanced level may often feel that sometimes their thinking is slow for a second, and good chips will be taken away by others, because the market There are many high-level traders in the market, and many of them will place orders at a certain price at the same time. As for the accuracy, it is related to the accuracy of the signal. The trader must control the cost within the price range of the stop loss, which requires strong anticipation and judgment on the process of signal formation.
2. Signal
The emergence of a signal that conforms to the operating principles is the basis for placing an order. Anyone who is a technician knows what the signal is, and some people can improve the accuracy of the signal to a very high level, so I will not elaborate here, but there is one thing that needs to be reminded The most important thing is that beginners should learn one signal well first. This signal is characterized by a relatively high frequency of occurrence and is relatively easy to grasp, while other signals should be learned slowly after they are familiar with this signal.
3. Stop loss
This is a life-saving element in the trading system, but many people understand the stop loss too simply, thinking that as long as the stop loss is strictly implemented, the risk will be minimized. Risk, more importantly, can help traders to grasp their own market. A good stop loss point is inseparable from the following elements:
A. Accurate signal
The stop loss point of each signal is different. Some signals need four or five points, some need seven or eight points, but some special signals can reach more than ten points. Breeds have a deep comprehension in order to be foolproof.
B. Avoid frequent operations
No matter how good the stop loss is, it cannot be used again and again in a short period of time, otherwise a small loss will soon turn into a huge loss. Therefore, traders must know the number of times they can operate every day, and never change the operation plan easily. A successful trader will often place an order in one direction and exit the market after making a profit, but sometimes a good trading opportunity will appear in the opposite direction, which also requires the trader to have a deep understanding of the trading variety.
C. Transition point
Under normal circumstances, if the stop loss point of a signal is five points, it is better to set it to the fourth and sixth points when operating, because two-thirds of the market will not touch five points at all. The profit will appear soon after the order is placed, but some signals are not obvious, or the cost area is stretched too large. At this time, it is likely to be extremely close to the stop loss point. ), the trader needs to set up a transition point and retreat gradually to reduce risks. This also has another advantage, which to a certain extent reduces the mentality of many people who have to gamble when they reach the stop loss point.
4. Take profit
There is a saying that when you see a good result, you close it. This is the element that brings profit in the trading system. Like the stop loss, different signals have different stop profit points. Some rely on the moving average, some rely on the position, and some rely on indicators. Usually Under normal circumstances, relying on indicators to take profit can catch a more ideal market, but like stop loss, take profit must also adopt a gradual retreat strategy, which is the biggest difference from trend operation. The principle of intraday operation is to reach the end The smaller the position, the more stable profits can be guaranteed without threatening the principal, so as to avoid the disappearance of profits due to excessive greed.
5. Operation direction
This is the most important part of the trading system. If the direction of operation is wrong, it will cause disastrous consequences. Whether it is wealth or trading psychology, judging the direction of operation should be combined with one's own operation style. Some people prefer to operate within one hour after the market opens, because One hour after the opening of the market is the most active time for trading, but it is best for traders to judge the direction of operation one day in advance or within ten minutes of the opening of the market. Note that it is the direction of operation, not the direction of market development; some people prefer to avoid the turbulence after the market opens. This requires traders to have strong patience and vision; some people prefer to operate in the afternoon, because there is generally a moderate market in the afternoon, and the market sentiment is basically stable, which is suitable for a steady and steady trading style.
6. Trading plan
Making a trading plan is the homework that every successful trader must do. You can't imagine that stable profits can be obtained just by feeling in the market. It may be possible when the amount of funds is small, but when you operate hundreds of hands and thousands of hands, you feel It is a bit unreliable, so a good trading plan is the psychological basis for the operation. When the market and operations are all within the plan, the trading mentality is very good. Even if a certain operation stops a little loss, it is still a plan. It does not have any impact on the continuity of the transaction. The idea of making a trading plan should follow the "if...then" approach, which should include various possible market patterns and countermeasures, coping strategies after stop loss, and so on.
The above are the elements of the intraday trading system that I have summarized based on years of operation. From my own point of view, it is relatively complete, but there may be people with different operating styles who disagree with it. For reference, after all, I have experienced a lot of mistakes in the past, and I hope that you will avoid detours when doing big operations.
Another important question is whether you really believe in your trading system. If you doubt it when it comes to the critical moment (most people do), then you will never want to stop the loss in time, so you usually spend more time on improving the trading system The above will be worth the money.
Finally, in terms of operating varieties, since there are great differences between any varieties, whether it is signals, methods of judging direction, stop loss or profit stop points, it is best to focus on one variety. Watch "Short-term Sniper" and you will understand that the real gold mine can only be found in one species. The more you want to take shortcuts, the more greedy you are, the more the market will make fun of you, so it is best to Honestly dig your own mine. Sooner or later the gold will be dug.
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