The concept and techniques of short-term trading

foreign exchangeFrom the surface level of trading techniques, there are many types: active traders, passive traders, short-term traders, medium-term traders, long-term traders, and arbitrage traders. Short term traders can be divided into different types, such as one-way band traders, two-way traders, pure inertia traders, and overnight positions. Here, we will only discuss the narrow short-term category.


Short term is a broad and relative concept, which refers to the operational method of completing a short turn of building and closing a position. In fact, there seems to be no strict time standard. Daily trading is considered short-term, and completing one round per week seems to be considered short-term.


The so-called short-term trading is a trading method that does not rely on fundamentals, but only on short-term market conditions. Its operation is based on the inertia and self verification of the market, and a shorter trading turn time is only a natural and inevitable attribute of this operation. According to this definition, the vast majority of short-term traders in the market are no longer short-term traders. Here are several important characteristics or attributes of short-term traders: Short term traders do not care about fundamentals: operating based on fundamentals is essentially the application of causal logic in the market and operations. Short term traders, on the other hand, do not rely on causal logic. They have long abandoned this seemingly proven universal logical approach by human society. Moreover, in terms of time, fundamental changes over a large time span are meaningless for repeated bidirectional operations within the day.


Short term traders do not rely on predictions or expectations as the basis for their operations: they only care about the present and do not believe it is necessary to care about the past and future, and do not arrogantly believe that they can know too much. He only knows the present, and he only grasps the present. All that keeps him out of the current operational situation is something he must avoid. The essence of prediction and expectation is basically causal logic, or other metaphysical foundations that cannot find true basis, and both causal logic and metaphysics are avoided by short-term traders.


Market sentiment is an internalized market, rather than an inexplicable and unstable feeling: it occupies a very important position in all types of operations. Unfortunately, almost everyone says what a sense of uncertainty is and how it can be effectively cultivated and trained.


For short-term operators, the true meaning of market sentiment is to fully relax oneself, gradually internalize and stabilize the market based on long-term correct market observation and trading. In other words, the source and foundation of market sentiment lie in internalizing the external market into one's own body(Attention, it's not the brain)Slowly transform the response to the external environment into the body's instincts, and obtain a stable and relaxed trading foundation by liberating or releasing the sensitivity of instincts.


Although short-term traders often appear to trade in a certain direction, they do not have a true long short concept or awareness: the long short concept or awareness is actually mostly based on expectations, so most short-term traders essentially trade in a single direction dominated band, in other words, they trade based on phased long short judgments. The level is mainly reflected in the timely conversion of stage long short awareness, and most transactions are rapid switching within a single direction or so-called oscillation stage box range. Short term traders, on the other hand, lack awareness of long and short positions. They trade based on market inertia and self validation, and each stage of the market is bidirectional. Most entry points are often at high or low points that go against the market.


Short term traders do not care about market demographics: They filter out all types of traders and see only a unified market, no longer caring about various types of trading groups from main players to retail investors. Short term traders do not rely on technical indicators and only judge the overall market evolution stage: technical indicators are inherently descriptive, in other words, a lagging descriptive. Although the use of technical indicators can reduce lag by shortening the time level and conducting mutual verification at different time levels, it cannot change the essence. In the eyes of short-term traders, time is often an illusion. Although they seem to trade within time, their trading basis is outside of time, and time is just a form of market development and evolution.


There is no difference in market and variety among short-term traders, they only choose the type that is most suitable for short-term trading: in the eyes of short-term traders, there is only one market and one product in the world, which is the group of people gathered together to trade. The differences in space, rhythm, and rhythm among different markets are all superficial. Short term traders filter differences to the greatest extent possible. If we really want to talk about the difference between markets and varieties, it's just that short-term traders prefer larger trading volumes, smoother evolutionary rhythms, easier entry and exit, and hiding their own markets and varieties.


Short term traders only use the simplest operations: arbitrage, position locking, position and fund management, operational discipline, stop loss, operational planning, and so on, which have no other effect except to reduce their operational pleasure and efficiency. Short term trading is not just a technique, but rather a cultivation: the trading foundation of short-term traders is not in any external analysis, technology, and technology combination, but in the cultivation of internalizing the market, having an instinctive basis for operation, observing market inertia, and self verification, and gaining strong ability to handle orders. Even right or wrong judgment is not the most important. As for risks, they are either faster than risks, or they will not put themselves in a situation where they cannot be operated or reacted to.


Short term trading is a game for the happy: the psychological and physiological basis of short term trading is happiness, rather than the kind of game where one takes a chestnut from the fire and licks blood on the edge.Happiness comes from several foundations: indifference to profits and losses and maintaining excellent psychological and physiological resilience in this indifference, daring to make profits(Contrary to everyone's ideas, being afraid to make a profit is a bigger problem in this market than being afraid to lose money)Trading methods without any additional coursework(After leaving the market, there is no longer a market in my heart)。