Want to enter the stock market, need to understand the market, according to the market dynamics. The fundamentals of the company and other factors to judge. In the process of investment, we often hear the jargon of short-term chasing up and down. Let's understand what this means.

What do you mean by chasing up and down in the short term?

First, let's take a look at what is short-term. Short-term trading refers to buying stocks and selling them in a relatively short time, so that you can earn the difference by this fast-forward and fast-out method. Generally speaking, short-term trading will not hold stocks for more than three months. In addition, there is an ultra-short-term transaction in short-term trading, that is, holding stocks for no more than three trading days.

Next, let's talk about what chasing up and killing down is. This refers to chasing up and buying when the stock price is high, and selling at a stop loss when the stock price falls. In other financial markets, such as futures and foreign exchange, there is a saying called chasing up and killing down, that is, buying when the price of the financial market rises and selling when the price falls.

Chasing up and killing down is a short-term operation strategy. Generally, chasing up in a bull market and killing down in a bear market follows the principle of taking advantage of the trend. Because even if we are a follow-up stock, if the general trend is weak, then the stock will be affected in the short term, and the short-term rise is unsustainable, which is not conducive to our chasing up, and vice versa. If the market improves, the stock may rise to a certain extent in the short term, which is what we often understand.

Therefore, short-term chasing up and down must have a clear judgment on individual stocks and market trends. When we do short-term, we must pay attention to strategy.