Six rules for short-term operations in the stock market

Rule 1: Research the general trend before buying a stock

1. Confirm whether the market is in the early stage of a rising cycle;
2. Which sector is favorable for macroeconomic policies and public opinion orientation, which are the representative stocks of this sector, and whether the trading volume is significantly larger than other sectors, and determine 5-10 target stocks ;
3. Collect all the information on the target stocks, including the company’s geographical area, tradable shares, business trends, annual reports, interim reports, announcements of shareholders’ meetings (board of directors), market comments and other relevant reports. Exclude the products with too large tradable shares, sluggish stocks or major problems in operation and no hope of reorganization for the time being.

Rule 2: The Law of Midline Land Quantity

1. Select 10, 20, and 30MA stocks that have been steadily rising for 6 months, during which the broader market has shown resistance to declines, generally only briefly below 30MA;
2. Confirm that OBV is stable and continues to hit new highs;
3. The amount of land appears when the market bottoms out, with 30 million shares traded on a trading day of 100,000 shares as the standard;
4. Intervention in batches on dips 10 minutes before the close of the day when the land volume appears;
5. In the short term, take 5%-10% as the profit exit point;
6. The center line takes 50% as the delivery point;
7. Take the 10MA stop loss point.

Rule 3: The short-term astronomical law

1. Select the stocks that have released a large amount of stocks at the bottom, and the daily turnover rate is continuously greater than 5%-10%, and follow-up observation;

2, 5, 10, 20MA appear long arrangement ;

3. After 60 minutes of MACD high and dead fork, the volume shrank back, OBV rose steadily in 15 minutes, and the stock price stabilized at 20MA;
4. Enter the market in batches at the second hour of the MACD golden fork in 60 minutes;
5. The short-term profit of more than 5% is distributed every emergency;
6. Once the market mutates, immediately break the capital and get out of the game, in order to fight again.

Rule 4: The Rule of Strong IPOs

1. Select new stocks with good fundamentals, growth potential, and tradable shares below 60 million to observe;
2. More than 70% of the hands changed hands on the first day of listing, or the market plummeted on the day, and the decline slowed down on the next day, and immediately closed a large positive line , recovering more than 2/3 of the negative line on the first day;
3. Buy at a new high or choose the law of sky-high buy point to intervene;
4. Profit 5%-10% out;
5. The stop loss is set to the breakeven price.

Rule 5: The Law of Volume

1. Volume helps to determine when the trend will reverse: high -level and heavy- volume long Yinxian is a sign of the top, while extremely shrinking volume indicates that the selling pressure has disappeared, which is often a signal of the bottom. The formula: price stability and volume contraction are the bottom;
2. The trading volume of individual stocks continues to exceed 5%, which is a clear sign that the main force is active. The short-term trading volume is large, the stock price has good elasticity, and short-term trading opportunities can be sought;
3. Individual stocks have risen indefinitely after heavy volume and sideways consolidation, which is a sign that the main chips are highly concentrated and the control plate is pulled up. At this time, the transaction is extremely rare, which is a good opportunity for mid-line buying;
4. In case of sudden high and huge long Yinxian situation is unknown, you must exit the game immediately to prevent a major negative lead to a collapsed decline.

Rule 6: Don’t Buy Descending Channel Stocks

1. Guessing the bottom of a descending channel stock is dangerous because it may not have a bottom at all;
2. What exists is reasonable. A falling stock must have a reason for falling. Don’t touch it.