$TNSR Short-term tips to avoid losing money
Seeing some friends losing money makes me feel a bit heartbroken. It's hard to say whether one can make money, but losing money can still be controlled to some extent through certain techniques. Recently, I've summarized some for reference:
1. Never chase highs
The market is always fluctuating, and chasing highs can lead to being trapped at any moment. What counts as chasing highs? For example:
high and low range, if it exceeds 1/2, don’t chase. The odds are about 55-45, which makes people uncomfortable.
A certain variety has a daily fluctuation of 100 points; after exceeding 50 points in the market, do not chase, as there is always a possibility of a pullback.
If you anticipate a potential upward trend, when using Bollinger Bands, do not enter when touching the upper band; you can wait for the price to pull back to touch the lower band, middle band, or the 10-period moving average.
2. Don't catch falling knives
You must wait for the market to stabilize, and the characteristics of stabilization should be summarized by yourself.
For example, round tops/bottoms, irregular double bottoms, etc. It should be noted that market trends that can reverse sharply are very rare, so don’t be hasty. However, it’s particularly important to note that if the consolidation pattern appears in the middle of the high and low range on the 1-hour chart, it is likely a continuation pattern rather than a reversal.
3. Avoid trading during quiet periods
Do not enter the market after 2:30 PM or after 10:30 PM. The day's market has already completed, trading volume shrinks, and there is not much movement in the market with unclear direction.
4. Pay attention to trading volume
When entering the market, be sure to observe the 5-minute trading volume. Think about it, can retail investors generate a large trading volume when there is no special news? It must be the main players taking action. The most classic example is the convergence of moving averages, followed by a sudden increase in trading volume. Do not trust price movements without trading volume.
5. Control single trade losses
If the market is uncertain, try not to enter. Do not treat stop losses as your confidence to enter. Have a clear entry logic, set a tight stop loss after entering, and only re-enter when the entry logic remains unchanged and the timing is suitable.