1, determine the band direction and target.
According to the wave theory, it is the best method to determine the direction and target of the wave band. Traders can count the number of waves on the 30-minute K-line chart of the stock and infer whether the wave pattern that is about to start in a trading day is B with 2 waves or C with 2 waves. If it is C of 2 waves, it is necessary to further clarify the starting point and ending point, so that a possible direction and goal of the intraday band will come out. An experienced cycle analyst can also set a time target for this band to improve the success rate.
2. Set the risk-return ratio.
The establishment of risks and returns is the fundamental guarantee for the success of intraday trading. Value at risk is the transaction cost that should be paid to judge the error or noise in the market. The risk value of four-time entrance mistakes of Liandou is 36 points, with a single stop loss of 9 points. Of course, if the band starting point is calculated accurately, you can use the 9-point stop loss trigger to decide to abandon the band operation. The calculation method of income value is to subtract 36 points that may be lost from the range between the start and end of continuous bean cases. Only when the return value is more than twice the risk value will it have operational value.
3. Make a trading plan
Sun Tzu's art of war is condensed into only eight words: "seek advantages and avoid disadvantages, surprise and annihilate the enemy." The important task of intraday trading is to grasp the trend on the one hand and prevent the sudden attack of the banker on the other. "Good things come out sharply and bad things come out sharply" often happens. Only when the enemy knows the previous situation can he win the game; To make a trading plan, it is necessary to embody the operational essence of "winning by surprise", and there must be various schemes in the trading plan, and no matter what kind of ultra-small probability events occur, they must be taken into account and be in an invincible position.
4. Bank transaction plan
Five minutes before the opening, it is usually time to adjust your mind quickly. After you quickly match your trading plan, you just need to wait for the performance of the market.