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Thanks to Stop Loss Queen for the invitation. In fact, all different trading styles, as long as they are logically positive expected returns, can be profitable, but the difficulty of each trading style is different.
The subject talked about short-term trading. Short-term trading is indeed very popular now, because it can be seen from the one-minute chart that it fluctuates violently. Prosperous, but this type of short-term has some irresistible shortcomings.
First, the question of the trading frequency mentioned by the subject, in fact, there is nothing wrong with high-frequency trading itself. If the trading system is high-quality, high-frequency can also bring the benefits of rapid feedback. However, it is extremely difficult to make profits in general high-frequency trading because of the spread And the existence of handling fees, let’s look at this problem objectively. First of all, regardless of the high or low frequency of trading, even if it is profitable, the funds will go up in a twists and turns. I haven’t heard of anyone who can maintain a 45-degree slope without retracement. , so even if it is a good trading system, it relies on time to accumulate wealth, and what are the spread fees and handling fees? It is a fund curve with no retracement slope downward. The frequency is not high, maybe the slope is not big, only ten degrees or twenty degrees, but if the frequency is high, the problem arises, and the slope of this non-retracement stable downward curve will start to increase, especially in some days. Several times, dozens of times, this cost will be quite high. In the end, even if the trading system is profitable, but it cannot cover these costs, it may be a loss in the last day, and sometimes if you do not adapt to your own system during the day, The transaction itself loses money, and the fee must be spent, because you only need to open a position to have this fee, and you may lose a lot on this day, so it is too difficult to make profits in high-frequency trading. Day traders still need to control the trading frequency .
Second, the slippage problem that short-term traders cannot avoid. Many short-term traders look at the cycle is very short, such as one point, three points, five points, etc. The stop loss of this kind of short cycle trading is generally very small, maybe ten or twenty points, and the operation style is also small losses and small losses Earn, and then rely on the winning rate to win and accumulate profits, but the liquidity of the market is a very unstable thing, and sometimes the liquidity will be relatively poor, such as the impact of major events, sudden news, large capital intervention, etc., stop loss Sometimes there may be unavoidable slippage, and it may not be so obvious to slip three points at a time, but if there are three slippages out of ten times, it will be very hurt and affect the profit.
The third point is the stability issue. Short-term trading techniques are relatively rich, you can rely on fundamentals to fast in and fast out, you can rely on indicators, you can scalp, and even short-term trading can also be trend trading. But in fact, the stability of these methods is worse than that of the medium and long-term, which is determined by the time cycle. There are many glitches in the small cycle, and the relative trend of the large cycle will be less irritable and easier to control.
In fact, to put it bluntly, the short-term means fast feedback, and quick profit and loss results. It is a high choice for traders who are not so willing to take orders. The medium-term means that the feedback is not so fast, but it looks relatively stable, and the transaction does not need so much energy. It would be good if some major trends can be held. It is possible to make a profit, the premise is to have a positive expectation trading system, trade according to the rules, and choose the cycle according to personal preference.
Are you satisfied with this answer?
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Last updated: 08/07/2023 06:19
Absolutely, there is a profession in the trading industry, which is known as Chaoshou, which means fast in and fast out. Sometimes the order will be flat within a few seconds after entering. I know a few friends who do this, and can earn tens of thousands a month very steadily, but it’s just a matter of talking. This requires a good sense of the market and a trading strategy.
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Last updated: 08/07/2023 10:12
The train of thought of the topic represents the aspirations of most trading leeks. Traders enter the market not only to make a profit, but also to win huge profits. Everyone wants to make a lot of money, make quick money, and then rush into the market enthusiastically to give their hard-earned money to others. The trading market is just taking advantage of traders' greed for speed and greed, and uses an illusory expectation to attract countless martyrs to actively spend their youth and blood and sweat on the inevitable road of loss.
The first thing I want to say is that even with the most conservative trading methods, speculative trading can bring profits that can be regarded as huge profits relative to any other industry. If your method is correct, you can get money through the market in three to five years that you could never make in your entire life. This kind of income can't be said to be a sudden profit, or it can't be said to be quick money. However, the vast majority of people are not even satisfied with this, wishing to earn a year's worth of money in one day and be financially free in half a month. Little do they know that the real meaning of "the risk is as great as the return" is "the risk is as great as the expected return". The status of the warehouse is up. It is extremely wrong to always think of quick profits, and it is the source of all losses.
The second thing I want to say is that whether it is short-term, long-term, frequent trading, or quantitative trading, it is a real trading method in itself, and its existence is reasonable, and it has its own theoretical basis. Short-term does not mean loss, long-term means profit, frequent trading means liquidation, and quantitative trading means liquidation. Every trading method has some people who use it very well, and some people who use it badly. Some short-term intraday traders often lose their positions, and some continue to make profits. The rest of the time is spent traveling and vacationing. It is stupid to say that a certain method is good and a certain method is not good without contact, understanding, and practice.
Then I want to emphasize that frequent trading must be short-term trading, but short-term trading does not necessarily require frequent trading. I found that many people have a deep misunderstanding of the trading hours, thinking that the long-term is trading on the daily and weekly lines, and the short-term is trading on the five-minute and one-hour lines. In the words of Buddhists, this is "to hold on to falsehood as truth". There is no long-term or short-term in the market itself, and the past and future are meaningless in the market, as long as the current transaction price is the only truth in the market. So you imagine that the market will have a short-term market that lasts for five minutes, and a mid-line market that will last for three days, all of which are "true delusions" and wishful thinking. Traders want to "trade in the present", and everything should start from themselves. I do short-term, which means that I hold the order for a short time and only hold it for a while. This does not prevent me from finding an opportunity on the daily line and only holding the order for five minutes. To be long-term means that I hold the order for a long time, and I need to hold it for two or three days to keep track of the market development, but it does not prevent me from looking for entry opportunities from the hourly line. Doing business doesn’t care what you look at, only what you do, everything you see is false, only what you do is the cause and effect, and the retribution is not good!
In the end, I want to say that trading philosophy is everything. Frequent trading and short-term trading each have their own theoretical support. Frequent trading is based on the principle that the market in the volatile market is always oscillating disorderly. If the take-profit space is small, then the profit order will always be closed. Through a large number of two-way orders and small stop-profits, the quantity is exchanged for quality, and the analysis of trading technology The requirements are relatively low, and you will die miserably when encountering a unilateral market after a breakthrough. The principle of short-term trading is to use the characteristics of high accuracy of technical analysis indicators in a short period of time, to obtain reasonable profits through relatively heavy positions and relatively high winning rates, and to avoid sudden risks through short-term positions. Here I want to emphasize that the accuracy of technical indicators on the short-term is higher than that on the long-term. Regarding the reverse K-line, I would like to remind one point that accuracy is not effectiveness, which does not prevent the saying that long-term technical indicators are more effective. The truth in this needs to be understood by traders themselves. There is a difference between frequent trading and short-term trading. Frequent trading places a large amount of orders, and the position of a single position is relatively low. It depends on the probability of shocks, and the stop loss is larger than the stop profit; because short-term trading requires a high degree of attention, generally only one order, the position It is too large, relying on the winning rate for food, and has higher requirements for technical analysis, and the stop loss is generally smaller than the stop profit; the only thing in common between the two is that the holding time of the order is very short.
There are many combinations in the trading system, and successful traders are good at combining different methods with their own strengths. But the combination of the short-term method of relying on technical analysis and the frequent placing of orders based on probability is the most stupid combination I can think of. This is the operation method of most leek traders, and it is also the reason why most leek traders lose money. Under the guidance of this method, you can only complete one order and open another order, and make a complete and good market in pieces, otherwise you will have to jump frequently among different trading varieties and successfully put a piece of stock into the market. The originally high-quality work has become heavy physical labor, which greatly consumes the energy and patience of the trader, and also greatly increases the possibility of making mistakes. In the last order. Regardless of whether you are a full-time trader or an amateur trader, if you are determined to do short-term trading, you really shouldn't turn it into short-term trading like manual labor. You should wait patiently like a sniper for the market to give you the best trading opportunity. Fight back, regardless of whether you are hit or not, you must quickly withdraw from the market, let alone turn short-term into long-term, and long-term into liquidation. The most important point is that traders should not be greedy for more and quicker. Just imagine, even if you can only catch one trading opportunity every day, you win three times and lose two times a week, leaving only one net winning order. In less than a year, your position can still be Doubled, the only result of trying to make a lot of money every day is to lose money quickly and get out.
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Last updated: 08/21/2023 15:06