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how small funds to quickly obtain large profits?

LEO

Oct 25, 2021 13:27

Short-term trading has always been a weapon for small funds to quickly obtain large profits. The liquidity of the market is limited. Fast-forward and fast-out trading strategies will not affect the market. This is the core advantage of small funds in the financial speculation market.

The first condition for short-term trading to earn excess profits: heavy positions.

1. Short-term profiteering, relying on heavy positions.

This kind of value is contrary to the universal values in the world, especially in markets with margin trading, most people will tell you that a heavy position will lose money faster. 

But what Iwants to tell you is that short-term profiteering depends on heavy positions. Only heavy positions can make full use of leverage and enlarge profits.

2. funds management is also required in the short-term trading.

The biggest threat in the short-term is the black swan event, but its probability is extremely low. Therefore, the important principle of short-term fund management is that if the black swan incident is unfortunately hit, you will have a chance to make a comeback. 

In fact, the short-term fund management method is very simple, take 50% of each profit and deposit it into a non-speculative account.

The second condition for short-term trading to earn excess profits: timing

1. The main goal of short-term traders is to trade outbursts.

This requires you to spend a lot of time researching market characteristics, researching trends, and being very familiar with what the market is doing every day, so that you can get into the market at the most critical moment.

2. The market is never rational, and the K line represents the mood of the market.

Through the K-line to review the historical trend, continuous practice, to feel the  mood from a purely trader's psychological , what emotions they ultimately decided to explode at this "time". On the eve of the market broke out, there were many changes. Think about what happens if the trend is long, and what happens to the bears, how will their reactions lead to market movements?

3. Weak market does not enter!

Note that the weak market does not do, not the bear market does not do.