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I've seen many friends suffer losses in short-term trading, which is indeed a pity. Although there is no absolute formula for making money, losses can actually be avoided through some methods. Recently, I整理了一些实战心得, perhaps it can inspire everyone.
**First Pitfall: Blindly chasing highs easily leads to being trapped**
Market fluctuations are hard to predict, but there's a pattern worth noting—when a certain asset's daily volatility reaches 100 points and the trend has already moved over 50 points, it's very risky to chase in at this point. The probability of rising or falling is roughly equal, and the psychological pressure becomes especially intense.
Another tip is to use Bollinger Bands for judgment. If the price is already close to the upper band, don't rush to enter the market. Instead, wait for the price to pull back to the lower band, middle band, or the 10-day moving average, then consider entering for a more stable approach.
**Second Pitfall: Timing of catching a sharp move is crucial**
The trend must stabilize before reversing. This characteristic requires personal exploration and summarization. Arc tops/bottoms and irregular secondary lows may be signals. But don't expect too much from V-shaped reversals—the truly rapid reversals are rare.
A detail that's easy to overlook: if a consolidation pattern appears in the middle of the previous high/low range on the 1-hour K-line, it's likely a continuation pattern rather than a reversal, so be cautious.
**Third Pitfall: Light trading periods are not suitable for operation**
After 2:30 PM and after 10:30 PM, trading volume often shrinks significantly. The day's trend has basically played out, and with insufficient volume, it's hard to form a big trend, and the direction becomes unclear. Opening positions forcefully during these times often backfires.
Honestly, blindly following the crowd has never been a way to make money. Only by finding a method that suits you and accumulating enough experience can you truly succeed.