Several common types of short term trading

  • 2023/2/25 22:47:58
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  • forextradingsessiontimes

From the character forex forextrad cashback forexgmarkettimetics of time forex trading session times frequency, there are indeed several common types of short term trading: intraday swing, overnight positions, speculative single, intraday two-way, in addition to short term arbitrage Intraday unidirectional-based trading: trading in the direction of the market trend in the judgment, when the market does not proceed in this direction or pause, timely exit, waiting for the next favorable entry point to come this The essence of the operation is to trade on the trend, by frequent entry and exit to preserve the profits gained and expand the profit margin (by frequent entry and exit at lower or higher points can indeed expand the profit margin), and to avoid the risk of the opposite direction may arise This approach is very different from the general trend traders: general trend traders always lose part of their profits in the reverse trend adjustment (or even because of the inertia of the trend direction). At the same time, because of this short term approach is always in time to cash profits, repeatedly enter, naturally each time open positions are larger than before, but also to improve the margin of profit, a period of trend down, even with the general trend traders get the same point space, its profits will be much higher than the general trend traders (this is the charm of level trading!) Although many of the entry points of this type of trading are in positions that seem counter-market, but it does not change the essence of the trend trading This type of trading must have a pre-trend judgment of the premise, such as the premise is wrong, it is impossible to have good performance This type of trading on the intra-day trendless oscillating market, the ability to adapt to bad and to a single direction is too strong, so that there is not much room for adjustment of the type of trend market, this This type of trading is often not as good as the average trend trader, and can even generate losses when the rhythm is disrupted This type of trading, if the level of trading is too poor, frequent mistakes in the entry and exit points, not only can not get more space, but will be due to the loss of points and higher transaction costs and lower profits than the average trend trader Although I do not think this type of trading is a true short term, but think it is worth recommending to many trend traders The reason is simple: this way of trading not only avoids the formation of trend inertia, after the trend to the top or bottom of the spit back profits or even reverse win into a loss, but also through the absolute value of the entry and exit points and the level of the trading effect to expand the profits of the larger In addition, even if the trend has not been judged to have ended, will be able to react after 1 or 2 times against the market trading, timely adjustment of the original trend direction judgment and This kind of trading is also helpful to overcome the common mentality of not daring to win, and is a good way to transition from the general trend traders to the real short term trading operation. Intraday (two-way) swing traders: the basis of this approach is similar to the intraday one-way market trading, but different, its judgment of the line table is more in-depth and more phased, it not only tries to judge the market It not only tries to judge the trend of the market, but also to judge the possible evolutionary stages of the market and the location or developmental stage of the current stage in the overall trend process (the inherent basis of these judgments is not those table-level techniques, but the internal logic of the markets existence and evolution) On top of this basis, intraday swing traders are relatively comfortable trading in the same trend process, in different directions naturally, the profit margin has been greater This type of trading makes up for the shortcomings of the previous one and expands the types of quotes and spaces for trading (both trend and oscillation quotes), which can be said to be a natural expansion of the previous type of trading in practice. This is only a suggestion for those who trade in the traditional way (and do not want to start again) to improve and deepen their trading level. For real short term traders (especially the so-called novices who have just entered the market), it is not recommended to use this gradual approach, but rather directly and completely from trading by feeling (this is another topic, and there is a big difference in the way of training) The level of the first two ways is reflected both in the ability to judge the market and the market stage (the basis of its judgment is the evolution of the market or the population in most cases there is a definite and continuous self-verification (these elements will be discussed in detail in the next few topics), but also in the ability to quickly correct the judgment On (i.e., the ability to quickly confirm the market situation and in addressing inertia thinking) speculative single trader speculative single trader is different from the above two types, it is actually a type of risk-free profit using the market small inertia say it risk-free, refers to a certain degree of market sense and operating ability, on the basis of the market small inertia, rapid entry and exit can be obtained with minimal risk of profit a plate sense is better Or market experience and can relax their own trading people, in fact, the market in a short period of time to have a very sensitive and accurate perception of the direction, the perception without any delay into action, is the way the speculative single trading this way does not need to judge the trend, but also do not need to see what graphics, only with the help of instantaneous flow transaction status and instant pending single status can be operated do not underestimate this way, this way The way of security is very high, although often only take 2 points to leave the field, the long-term accumulation of very substantial profits, of course, this also gets a certain level, otherwise the transaction costs and each loss of 1 to 2 points of the accumulation is enough to kill you in addition, the speculative single stop loss is very strict, the maximum will not allow a loss of more than 5 basic points or 5% of all funds Overnight positions of this way of basis in fact, and The first two categories are very similar, the difference is the operating time frame and operating practices used in the afternoon before the close to enter the morning before the opening of the market that is to leave very experienced traders are generally very familiar with the operating practices of the market majors, basically you can get a better end and opening position, but if the market is not sufficiently well educated in the internal evolution, it is also easy to cause great losses (therefore, not recommended to a certain level of This method is suitable for trading varieties with little intra-day space, but always jump open, and for varieties with less jump open, there is no value to use Short term arbitrage trading is also a type of short term, but because it uses too many different techniques and ideas from the general short term, and its operational efficiency is far lower than the general short term, so it is not discussed Real short term trading: except for In addition to arbitrage trading, all the above short term trading types of the synthesis of it based on the market and the crowd inherent relatively continuous evolution of the stereotypes and excellent grasp of market inertia, and the latter prevail, frequent two-way trading