This week's Hong Kong stock market was thrilling. It plummeted due to malicious short selling on Monday and Tuesday, but rebounded on Wednesday and Thursday. The market was extremely volatile. This week also saw a miracle day for Hang Seng Technology stocks. As mentioned a long time ago, under the current situation of violent market fluctuations, if you hold stocks and buy the bottom overnight, your mentality will most likely collapse. For example, Tencent bought the bottom last week. It will give you a 10% drop on Monday, and another one on Tuesday. It fell by 10%, and plummeted by 20% for two consecutive days. It has almost never happened in recent years. If the position is heavy, you may not be able to sleep. Many people cut their flesh again. As a result, it rebounded violently by 20% on Wednesday because of the favorable policies. Holding shares overnight in this market situation will bring down most retail investors. Tencent is relatively stable, and it is not an exaggeration to say that others may even drop more than thirty or forty points. If you decisively buy the bottom and hold shares overnight, Especially those with heavy positions and leverage, and countless positions have been liquidated! I have said a long time ago that in this kind of unilateral falling market, you should not hold positions overnight to buy bottoms. Try not to hold stocks overnight in the short term. Buy on the same day and sell on the same day. This way, you will have better risk control. At least you can avoid holding positions overnight. risks of.
Although intraday trading operations will miss out on profits from higher openings, especially those who bought the bottom on Tuesday and held stocks overnight will say that they took advantage of a complete 20%+ increase on Wednesday. It is true that this time the judgment was correct. What about once? If you make one mistake, you will lose your principal or even be completely destroyed, because you only consider the income and not the risk. Many people always want to buy at the lowest point and sell at the highest point to get all the profits. But even the top traders, It's impossible to be so accurate every time. Most of those who sell accurately can be considered lucky.
In this issue, I will tell you about the intraday trading strategy of trend trading through my own actual trading operations.
Intraday trading operations are actually relatively easy to do recently, because the long-short trend has become particularly obvious, and the daily amplitude is also large. Recently, the market has been unilaterally rising or falling. Even for stocks like Tencent, the fluctuations are several points every day. Usually, there are only a few tenths of fluctuations. The worst time may be Thursday. It's oscillating sideways. There is no fluctuation at all, but if you grasp it well, you can still make profits. Intraday trading, at least in the trading room, is an operation with financial leverage for traders. Because there is no overnight, there will be no interest or risks caused by overnight. Also, because there are stop-loss and take-profit and they are resolutely implemented in accordance with disciplines, and There is a daily liquidation limit, so the overall risk is controllable.
Recently, my own intraday trend has been pretty good, because Hong Kong stock brokers who are familiar with the system operation can only do long but not short (most brokers with Hong Kong stock licenses can only do long), and those who can do short are not very familiar with the system operation. So I only made three short orders, and there was no way I could do it with only two brokers. Although the short-selling broker could also do long positions, the fees were not cheap and were not as low as those of Hong Kong stock brokers.
The overall intraday trading results are pretty good, which is also due to the market. The two waves of Tencent's upward trend on Wednesday and Friday were grasped. In addition, the B station that I did on Friday night also made two successful multi-order cases with the upward trend. , the unilateral upward trend was really too obvious that day. In the first half of the night, the increase almost went from single digits to 30%+. The main rise was around 12 o'clock, which was basically before I went to bed. It felt like this when doing US stocks. Even if it is pulled up, the small Yang line will keep rising, which is very strong, but it may also be related to the previous drop too much. Station B fell by more than 80% before! I don’t care about day trading at all. I just look at the trend of yesterday. As long as there is a trend, the trading opportunity will come. Unfortunately, the US stock market is in the night market, so it is impossible to keep an eye on it during the day. There is no overnight position either. No matter whether it is successful or failed, you can just shoot and run. Moreover, this one has 5 times leverage, which is even more impossible to do overnight.
As can be seen from the transaction details in the above picture, there was a wave of short orders from Goose Factory on the morning of March 16. After that, Goose Factory opened high and moved low, and then the news came in the afternoon. The trend of Goose Factory in the morning was It keeps going down. This kind of short order in the morning is basically a one-shot move. The bulls may counterattack at any time. After all, it is not as obvious as the downward trend on Monday and Tuesday. It is a pity that I did not use this brokerage on Monday and Tuesday. , otherwise it is also a good day trading opportunity.
Then in the afternoon, a violent rally began. If you want to make this buying logic, you have to look at the sector and index where the individual stocks are located. The Shanghai Composite Index and the Hang Seng Index have reached new highs, while Goose Factory is still rising. After the first round, there was a slight adjustment, but it did not reach a stage high. Is this a good opportunity to intervene? I have also written out the logic and strategy of buying here in the picture below.
Let’s talk about the buying logic of Goose Factory on March 18th. If I sell, I usually come out directly when I think the profit is enough or there is an adjustment.
Goose Factory's 13.58 points are the same at this time. The Hang Seng Index has reached a new high. Goose Factory is still fluctuating. The index continues to rise in accordance with the trend. Goose Factory naturally rises as well. I am watching the two index one-minute lines with two mobile phones. Generally, if the index reaches a new high, if stocks like Tencent, Ali, Meituan, etc. do not have a new high, you can cut in, because if the index continues to rise according to the upward trend, the individual stocks will definitely reach a new high. Sometimes there will be such a time difference that gives us an opportunity. operational.
Let’s look at the situation of Goose Factory at 13.25 on March 18, as shown in the figure below: the index has reached a new high, and Goose Factory is still sorting out on the platform, which is also a good opportunity to enter. This is another very good strategy. In fact, once this trend comes, it will be easier to do as long as you go with the trend and don't operate against it.
In trading, it is very important to follow the trend. "Following the trend" is to make the probability of trading in your favor. Here are a few quotes from the book "Diary of a Wall Street Trader":
Situations often exist, but trends do not. As long as there is a market, it will definitely show a certain trend. It is also a trend that buyers and sellers are evenly matched, and at this time, there is no trend in the market. For a trend to occur, one side must have an advantage, even a slight one. Trend is one of several manifestations of the market and one of the various trajectories of the mechanism of stock price operation. Trends are not the normal state of the market. Generally speaking, the stock market shows a clear trend only about one-third of the time, and sometimes it is even in trend only a quarter of the time. The duration of the trend may be long or short, and the fluctuation range of the trend may be large or small. Most trends can only last for a short period of time and can only have a limited range of fluctuations. A few area trends can have a long duration and considerable fluctuation range. Only a handful of trends can be called dramatic. Big trends are relatively rare, because for a trend to continue, the market situation needs to remain beneficial to one party. For example, if an upward trend wants to continue, the market situation needs to remain beneficial to many parties. Once the market situation reverses, the trend ends. And many things can reverse the market situation and cause the trend to die. There are definitely only a few people who can grow from a small trend into a big trend. If a trader wants to succeed in the market, he needs to respect the trend, but he cannot expect the market to often have big trends; he must accept the fact that, more often than not, the market has a trend.
Clear and smooth trends are relatively rare. Once such a trend occurs, the stock price will show a certain pattern, that is, it will show "higher highs and higher lows" in an upward trend, and "lower lows" in a downward trend. highs and lower lows”. These rules provide market participants with good opportunities to make money. Therefore, when a trend appears, traders must follow the trend, grasp the rules of stock price movement, and seize rare opportunities to make money.
A true master has enough self-discipline to stop himself when the market is chaotic, and can patiently observe and wait on the sidelines. It is this kind of observation and waiting that makes them know that when the market becomes clear, they are more likely to participate boldly and decisively. Many market participants do not know how to stop when the market is chaotic, or, although they know how to stop, they are unable to stop themselves because of insufficient self-discipline. They constantly speculate on the trend of stock prices, constantly suffer losses and setbacks, and can easily spoil their mentality and become irritable, frustrated, and full of frustration. When the market really goes out of a good market with a relatively clear trend and a relatively long duration, they no longer dare to imagine that the trend can continue. At the same time, they no longer have a good mentality to participate in it. To sum up, don’t do it if you don’t have a chance!
The market does not always follow clear and smooth trends. As mentioned before, trends are not the normal state of the market. Generally speaking, the stock market only shows a clear trend about one-third of the time, and sometimes it is even trending only a quarter of the time. When there is no trend, the market sometimes exhibits a relatively regular range-bound oscillation pattern.
"Following the trend" only allows the probability to be in our favor, and does not guarantee that every transaction will make money. A top trader with stable profits operates strictly according to the principle of "going with the trend". Not every transaction will make money, and some transactions will lose money. However, generally speaking, he loses more than he makes. Less, so he can make money steadily. When we are "going with the trend", if we encounter a losing transaction, don't feel aggrieved, and don't feel that "going with the trend" is useless. We must stop the loss resolutely, continue to insist on "going with the trend", and maintain a good attitude. Mentality, patiently look for and seize trading opportunities. As long as we can control risks, maintain a good attitude, and make the odds work in our favor, we will definitely make money in the end.