Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
The classic short-term trading method, as long as you have the correct guidance – a sound futures trading concept – and accurate and timely entry and exit points, you can ensure profits through swing trading and accelerate the growth of your trading account.
According to the trading time frame, the market can generally be divided into four types: ultra-short-term trading, short-term trading, medium- and long-term trading, and long-term trading. Although there is no specific time range, my personal understanding is that ultra-short trading refers to trading within one hour, short-term trading within one day, medium and long-term trading within one week, and even longer periods are considered long-term trading. For the convenience of analysis, we call ultra-short-term trading and short-term trading collectively short-term trading, and medium- and long-term trading and long-term trading collectively called long-term trading.
Short-term trading focuses on “following the trend”, quickly entering and exiting the market, and profiting from rising and falling prices. Investors require accurate and timely sources of information, sufficient time, and a high degree of psychological flexibility. They must carefully analyze various technical indicators and make the most accurate decisions in the shortest time. The secret to this method is setting stop loss and take profit points. If the assessment is wrong, you should exit decisively and avoid continuing to hold the transaction to avoid losses. If it is in an upward stage or in a market trend, use the method of gradually raising the profit stop point. This way, you can reduce your risk and achieve greater profits.
Long-term trading focuses on “contrarian thinking”: buy low and sell high. This type of trading does not require a lot of time or in-depth market analysis, just a lot of confidence and patience. When the market sentiment is low, many people fall into the trap of losing money, the price is low, everyone thinks there is no opportunity, and the trading volume is small. This is the best opportunity for long-term investors to enter the market. Investors do not need to set stop-loss points, but set profit-taking points to ensure patient positions. When markets are crowded, indexes are high, and market sentiment is high, investors make profits.
When entering the market, reasonable position sizes, stop loss levels, and take profit/minimization strategies should also be determined based on risk management principles. Generally speaking, perfect trading is not achieved through hasty decisions during trading, but is actually a programmed trading process.
In short, a reasonable and ideal trading model should be like this:
1. Wait for new trends to emerge. Identify and confirm trend formation based on moving averages rather than trying to capture imaginary highs or lows before a trend occurs.
2. After the trend is formed, wait for an obvious retracement pattern to appear within the trend. Note that this is a pattern and not just a simple bounce of one or two candles.
3. After confirming that the pattern is a rebound or callback within the trend rather than a trend reversal, when the rebound or callback pattern is about to end or has ended, enter the market in the direction indicated by the moving average. It is best to enter the market when the pattern completely coincides with the moving average.
4. When trading, set the position size, stop loss level, profit target and action of taking profit or adding or subtracting the position in accordance with the risk management principles.
5. At least reduce positions after reaching the minimum profit target, and close all positions after reaching the maximum profit target or when the trend reverses.
I won’t make a prediction today about next week’s opening. We await today’s non-farm payrolls data, as well as potential updates over the weekend on the ongoing impact of the US-Iran conflict. This could have a significant impact on Monday’s opening, increasing the likelihood that the market will move in one direction. However, whether it will fall sharply or rebound depends on market news. I will provide analysis and predictions based on the news from the weekend. Thank you, I hope what I shared today will be helpful to everyone.
