Individual Investors How to Develop a Short Term Stock Trading System
Short-term stock trading is nurtured by continuous summaries, they have experienced each transaction, whether it is a loss or a win, will summarize the laws of this transaction, the more practice, the faster the speed of the summary of the law. Using a computer to do analysis can quickly make a model deduction, but there is no way to do emotional deduction, and the advantage of human brain analysis is that in addition to the volume and price information can be processed, but also combined with emotions to do analysis and judgment. Subjective this thing is actually no error, more reference value than the objective past.
If the calculation of the machine, as long as more than 51% of the method is quality quantification, then in the trading model, it is possible to make 51%, 55%, 60% or even more efficient model out of the volume and price, combined with short term indicators. So the short term can make money, is based on practice to quantify their own sense of the plate, summed up their own trading rules.
Through the big data analysis of the law of short term rise
Many stock trading software comes with only stock selection, AI stock selection, similarity stock selection this kind of function, there are some tools to do data backtesting according to the model, the first step for investors to do is not to figure out what trading method, but through the model to find, summarize the law, big data can give the law is more effective, most of them are others used the law, some have been Validate the effective, this time is to believe in big data, make a methodological screening.
Use the law for trial and error, total success and failure
After obtaining the big data, we have to use the law to trial and error, the law although said to give a high probability of winning formula, usually the probability of rising will be greater than 50%, but there is no buy and sell point of the law, in fact, is a rogue, but not 100% of the rise, the essence of the risk, so we have to learn to improvise, for inexperienced investors, can only set a good Rules, use this model to go on trial and error, and finally summarize through the results, what kind of stocks rise higher probability, what kind of rise rate is low, the methodology of others, push to start over is not normal.
The use of summaries of experience to optimize the emotions in trading
According to their own summary of experience, and computer data is the same this time do not be proud, because it only means that now can only be a tie with the computer, this time also need to keep practicing, try to read the market to do so behind what kind of emotion, this time part of the more sensitive to the emotions of investors, will understand why they will make money or loss, and then, naturally, is to optimize the emotions, improve The ability to react in the case of reading emotions.
Continuous trial and error summary, the formation of their own set of stock trading system
This is the last step, that is, for the short term stock trading a trial and error, to put it bluntly is a short term trading disadvantage, in different market conditions, the results will vary a lot, on the one hand, the bull market and bear market is not the same emotional changes, the bull market is more aggressive, the bear market is more conservative, on the other hand is the bull market will be more abundant funds, the bear market funds are more stretched, so its The way of operation is also different, only the bull market and bear market have experienced, the operation system will be more perfect, in the process requires investors to constantly trial and error, and then sum up the law. Of course, the purpose of trial and error is not to lose money, but to quickly find the solution to the probability, to understand the short term rise and fall behind the way the money operates. The event out of true knowledge is right, but practice is also to be methodical, trial and error must control the position, and a reasonable stop-loss stop, this is the most basic basic skills.
Risk Warning: The above content is for reference only, and does not represent JRFX’s position. JRFX does not assume any form of loss caused by any trading carried out in accordance with this article. Please consult your financial planner for your investment portfolios and manage your own risk.