What Are the Basics of Day Trading?

Day trading is a trading mode. The English name is daytrade, which mainly refers to the trading method of holding positions for a short time without leaving overnight positions. Day trading captures trading opportunities that can be separated from the cost of entering the market immediately after entering the market. If you cannot make a profit immediately after entering the market, you are ready to leave the market quickly. Because this trading method is short in the market, the risk of market fluctuations is low. At present, some traders around the world have adopted this trading method to achieve stable profits and have achieved success. For example, Charlie D has become a myth of intraday trading, so intraday trading has now been respected and accepted by more and more people.

Day trading

Different understandings of the speculative market have created different

influences

according to

First, we must establish a small profit trading idea. Do nt be greedy in the short term, and set yourself a reasonable

Keep calm and calm, let the market show up in front of yourself one second at a time. If the market appears to be in line with its own trading opportunities to intervene in a timely manner, you wo nt be disappointed if you lose, you wo nt be discouraged when you lose, you wo nt regret if you miss it, keep in mind the technical essentials, and advance and retreat. That's it. This is the life of a speculator and cannot be influenced by things outside the market. The main reason why most people do simulations better than actual combat is in the mindset. In actual combat, the state of mind is not peaceful. If you make a profit, you still want to make a profit. If you lose, you are anxious to pull it back. The transaction should establish such a concept and do it in accordance with its own rules. Regardless of winning or losing, you will not regret it.

-From "The Wall Street Trader's Diary"

Tradition

Any T + 0 financial instrument can be the object of intraday trading, including stocks,

1. Select the market. Assess whether the current level of market volatility is sufficient (taking into account handling fees). If the volatility is insufficient and you enter the market rashly, even if you are lucky and do not lose, it is at the end of a white fee.

2. Choose the level of volatility to participate in based on your objective conditions and expertise.

a. The basic fluctuations within minutes, 1 to 3 points space, require very low handling fees, fast enough runway, fast response, require a win rate of 80% or more, busy all day, relying on natural reactions, conditioned reflexes, hands-free (Exaggerated);

b. Secondary fluctuations. The range varies according to different markets. The HSI is about 10-30 points. Opportunities to enter the market about ten times a day (not necessarily every time), requiring a winning rate of 60 to 70%;

c. Intra-day band. Operate two or three times a day. If the operation is successful, there is already a surplus of 50%. .

3. Find a good entry point (mainly refers to b and c above). There are only two entry points for masters:

a. Great price. This position is right in the market, usually you can stop here and wait for the first time, and then you can pass by. But requires prophecy;

b. Bo silly price. I was stupid earlier than others, I woke up faster than others, and my hands were sharp enough.

Regardless of the type of entry point, if you enter the market correctly, usually the price will quickly leave your cost zone. Otherwise, there is likely to be a problem.

4. Have the right exit strategy. Intraday trading, unless you make a judgment error or stop loss, you must not let the market decide when you leave the market. You have to plan your departure in advance. It is very important that intraday trading does not have the time and cost to wait for the market to send out signals.

Day trading assistant tools include common market software review tools and day trading training software specifically designed for day trading training. Dynamic review of historical transaction records can be provided for intraday traders training.