Topic: My Experience of Short-term & Long-term Trading (Read 144 times)

article originally from FMZ.COM

my experience in short-term trading

The market is always in disorderly fluctuations. The speculative choice of the speculators for buying and selling is not based on the judgment of the long-term trend, but on their own expectations of the next fluctuation in price. The short-term speculators earned the volatility of the day's trading and must not hold positions overnight. In the short-term trading, once the loss happens, stop loss immediately, and the loss of each transaction should not exceed one fluctuation price. The short-term speculation must be strictly distinguished from the general trend investment.

The short-term trading earns a meager profit, so you can't hesitate to close the position.


Traditional trend traders have enough time to study the market, can make plans to enter the market and use various means to control risks, but short-term traders are different. They don't have much time to think about it. It is necessary to close position soon after opening position, so absolutely no hesitation to the execution of closing position.

In a normal trend trade, hesitating for a few minutes may not affect the outcome of the trade, but a few seconds of hesitation in a short-term trade will miss the opportunity to close the position. The short-term trading order is followed by the next wave of the market. At the same time of opening the position, it has already decided that it must close the position at the next beating price. What the short-term trading earn is the profit brought by the random fluctuation of the price. Once it has not followed the rhythm of the market in time, even if there is only one hesitation, this day may loss in all.

What I discussed and carried out is the shortest short-term trading in the day trading (one transaction in one minute). Generally, don’t hold positions. After opening the position, if the market is developing in the expected direction, earn 2 to 5 price points and run; if it’s not in the expected direction, sell and leave, even if you don’t take any profit or loss a little. The truth is like a cat in the fire: the cat must shrink its claws no matter whether it get the chestnut or not; otherwise the fire will burn the claws!

Short-term trading is the most flexible and safe way to invest in such high-risk investments as futures. As for the loss in the process of chasing short term, that is another topic. In the spring garden of riotous colors, I gather but one rosebud. One rosebud is enough.

Three conclusions from me: stop loss is important; when it’s rising, don’t buy, when it’s not falling, don’t sell; always rely on yourself.

My trading philosophy mainly includes the following:

1. Choosing the direction is the key to the success of the transaction. Or in other words, be clear whether it’s a bull market or bear market. Only by grasping the direction of the market and taking advantage of the trend, the possibility of making money is even greater.

2. Grasp the stop loss. Even if you don't have trading experience, you can control your risk by making a stop loss. 3. Fund management. This has important significance in futures investment. For example, if you can't see the market, take a small position and wait for the time to open big positions. However, investors are mostly buying more when they lose more, but when they make money, they have smaller positions.

4. When the market is not rising when there is good news, you must never buy more and vice versa.


my experience in long-term trading

Long-term trading chases the trend, takes trend as its only true friend and the source of its own profits. Long-term traders don’t pay attention to the fluctuations of prices in a day, and believe that this fluctuation of prices has nothing to do with themselves, which will make people feel that they are insensitive, even Like a fool. They don't pay attention to how the market will go the next day, and only care whether the trend is over. The endurance of long-term traders is beyond the understanding of ordinary investors and ordinary investors cannot bear.

There is a misunderstanding in the market that long-term traders can hold positions for a long time because they can predict the market trend and the end point. This is really a big misunderstanding! In fact, long-term traders do not know the future trend of the market, just like everyone else, and he just follows the discipline to track the trend.

Holding long-term positions by discipline must endure the pain that ordinary people do not understand well. It can be said that long-term profit is gained by long-term torture!

The large fluctuations in the market can easily eat most of the profits gained before. The most unbearable thing is that this kind of falling is often what you think is really happening. That is to say, you watch the profits go back and cannot do nothing, this is like someone rubs your money and you just watch it happens. Can you understand this kind of pain and can you bear?

Long-term traders have to give up many profit opportunities that they have confidence in exchange for long-term profits.

There are fewer opportunities for long-term trading, and the market is fluctuating most of the year. In the situation of fluctuation, sometimes long-term traders have been losing money, and frequently turn to loss when they are making profits. This kind of torture is enough. This kind of situation is easier said than done and will be more difficult than you think!

You seem to have a lot of mental and spiritual burdens, and are too sensitive to the short-term rise and fall of stocks. In fact, there are many subjective stereotypes in your mind that have been accepted without careful consideration and practice.


As mentioned above, many people don't pay attention to it, or don't understand it, or even ridicule it, but the fact is: 95% of the profits of American trading giant Charlie Dennis come from 5% of the transactions!

article originally from FMZ.COM