What are the principles of short term operation that need to be observed in stock market investment?

Mondo Finance Updated on 2024-02-01

**The operation as a whole has a high degree of operational difficulty, but many investors themselves do not have enough understanding of it, and are more just impulsive behaviors generated by market sentiment. Next, let's learn what principles need to be observed in the operation.

1. Priority technical analysis

In **, any operation should be based on technical analysis. Understand the company's situation, understand the industry prospects, and understand the market direction. Only when you know enough, can you form a relatively correct judgment more accurately and quickly. Although it may not necessarily lead to improvement in the short term, it can effectively help you avoid losses caused by impulsive actions and reduce losses caused by frequent trading behavior in the process of long-term investment.

2. Comply with market rules

The law of the market is always the underlying logic of stock price changes. There are many factors that lead to changes in stock prices, but we can still get a glimpse of the regularity of changes. Adjusting the investment composition in accordance with market changes and reducing speculative factors in investment behavior can help us better ensure the safety of funds.

3. Observation**

*The operation itself is risky, and the most effective way to reduce the risk is to choose a good time to enter the market. If you choose to operate when the overall situation is sluggish, it will become more difficult to make a profit due to the overall downturn. If you operate when the market is rising, you will have a better chance to enjoy the dividends of the market upswing and improve the level of profit.

4. Clarify the profit criteria

When we do this, we need to be clear about our own monetization criteria. It is difficult to obtain a large profit in a single order, so it is necessary to establish the idea of small profits and strictly regulate the trading for yourself. Once we fall into the gambler's mentality, it is easy to be trapped by the market, resulting in losses being magnified invisibly.

The operation is more about capturing the changes, and through short-term judgment, we can accurately obtain the dividends brought by the market trend. Therefore, it requires us to make decisive judgment and action, and not to be greedy.

Risk Warning: This article only represents personal views and advice, and does not constitute investment or advice under any circumstances.

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