Core principles of ultra-short trading: follow the rules, follow the cycle, make decisions with certainty

Preface [Taogu Ba]
The original author of this article is @MainRiseLeaderKongKongLong (hereafter referred to as “Dragon Master”). The original title is “Top Streaming Hot Money Practical Super Dry Goods: Smooth Node Switching + Sentiment Flow + Technical Mindset (20,000-word Long Article),” which condenses Dragon Master’s years of ultra-short trading practical experience and core insights. To make this valuable practical content easier to spread and for the ZhiJia Army to quickly grasp the core logic, and to avoid lengthy content increasing reading burden, Duomengzhi has made significant deletions and refinements to the original text, striving to retain Dragon Master’s core intentions and practical value while being concise and focused. After editing by Duomengzhi, this article has been publicly published with prior approval from Dragon Master. Here, we once again thank Dragon Master for his enthusiastic preaching and selfless sharing. May every member of the ZhiJia Army draw nourishment from it, avoid detours in ultra-short trading, and move forward steadily.
As an experienced veteran investor who has been in the market for many years, the core of ultra-short profit is not purely technical but involves restraint of human nature, following cycles, and adhering to certainty. Below is the core logic summarized from practical experience, each sentence derived from painful lessons, and can be directly copied for verification.

1. The Core Bottom Line of Trading: Control Your Hands, Avoid Lucky Breaks, Strict Stop-Loss
The root cause of retail accounts being continuously cut in half is not a single stop-loss on a stock but greed, luck, and operations outside the pattern: adding positions during weakness after a breakout, averaging down on declining stocks, chasing high at the top, or being trapped and brainwashed by research reports, ultimately turning small profits into losses, break-even into traps, and small losses into big losses. A single stop-loss will never cause an account to collapse, but reckless operations driven by luck without bottom line will. This is the first survival rule of ultra-short trading.

2. The Core Reliance of Stocks: Rely on the Sector, Abandon Cross-Pattern, Watch for Linkage
Avoid crossing stocks without sector support; crossing nine out of ten times leads to failure. The strength of a stock must be supported by sector effects. True leaders are the result of sector-driven pushback, such as Aerospace Development becoming the main leader, where the core is small continuous gains during high sideways consolidation forming a combined force; currently, aerospace sector weakness is due to stocks with no recognition breaking new highs, and scattered low-level rebounds are essentially cover-ups for distribution. When selecting stocks, first look at sector indices. Before the chip breakthrough, even strong stocks can be dragged down.

3. The Only Solution for Retracement: Know How to Hold Cash, Avoid Risks, and Re-judge
Holding cash is the only way to control retracement and is the most crucial operation in ultra-short trading. Major market declines will have signals; pre-judging and holding cash is far more important than toughing it out. Ultra-short trading emphasizes “prefer missing out over making mistakes.” A wrong judgment can wipe out years of savings for ordinary people. The power of compound interest is astonishing—20% monthly, and small capital can grow a thousandfold in three years. Do not rush to trade just because your capital is small; holding cash allows you to see the market clearly and avoid subjective illusions.

4. The Practical Essence of Divergence: Identify Cycles, Spot the Ice Point, Turn Weak to Strong
Choosing strong stocks only applies during the main rising phase. During retreating or chaotic phases, anti-dip stocks are likely to rebound the next day. Strong stocks on big divergence days should only be observed. The most certain buy points are after two days of continuous retreat plus sentiment-driven ice points, identifying stocks with high recognition that weakly turn strong the day after: when the market and sector are both weak, stocks passively weaken, then open high the next day and quickly hit the limit-up to reverse, which can drive a large sector rebound (e.g., Aerospace Power on 2025.11.24). The key is to judge whether “the weak should turn strong.”

5. The Underlying Logic of Capital: Follow the Drivers, Recognize Quantification, Take the Lead
Ultra-short trading is fundamentally driven by capital. View sector rotations, pullbacks, and high-low cuts from the capital perspective. Understand the main force’s rebalancing strategies, and even read the quantification push mechanism. If a sector suddenly opens with many stocks hitting the limit-up within 10 minutes of opening, it triggers quantification push. At this point, either aim for the first board or arbitrage on the GEM board’s 20-cent elasticity. Taking the lead within the day is key; if you miss the front-run, decisively give up. Money is endless, but losses are finite.

6. The Operating Principles in Chaotic Periods: Trade Less, Lower Expectations, Don’t Chase
Currently, the market is in a chaotic phase. Chasing gains and selling losses is the root of losses. As year-end earnings reports approach, funds dare not aggressively attack, and sector and stock continuity are limited. During this phase, trade less, wait more, reduce positions and profit expectations. True strength lies in supported pullbacks and sideways consolidations that are not weak. If you can’t resist trading, remember: avoid explosive stocks with volume surges and quick limit-ups; only trade well-recognized stocks with good turnover; if a stock surges but doesn’t hit the limit, exit decisively. Stay away from the next-day rally of exploding sectors.

7. The Key to Trading: Timing Is Greater Than Everything, Switch Modes According to Cycles
The win rate in ultra-short trading depends on the timing of entries. The same pattern can have vastly different results in different cycles. Adjust your strategy according to sentiment cycles: during main rise, chase continuous limit-ups and strengthen positions; during retreat, look for ice points and weak-to-strong reversals; in chaotic periods, hold cash or low positions, only trade certainty and unexpected opportunities. The market is always changing. In the era of quantification, continuous iteration of thinking is necessary. Follow the current profit drivers and avoid losses—this is the foundation of survival in ultra-short trading.

8. The Essential Skill: Quick Correction, Abandon Subjectivity, Recognize Emotions
When trading stocks, abandon subjective guesses. Learn to correct mistakes promptly: if a sector unexpectedly performs well despite negative expectations, get in decisively if it meets trading conditions. Also, distinguish emotional signals: if a sector shows divergence but doesn’t, or even pulls back at the end of the day, it’s a trap for false signals. Exit the stocks in the back rows decisively. Let emotions serve you, not control you. A short-term mistake can cause days of discomfort.

9. The Underlying Mindset for Profits: Treat It Like a Business, Focus on Long-Term, Control Drawdowns
Treat stock trading like a normal business, viewing returns monthly or yearly rather than obsessing over daily gains and losses. During major downturns, forcing a涨停 (limit-up) may seem profitable temporarily, but it can’t control retracement and is akin to gambling. The key to stable ultra-short profits is to heavily hold during main rises and reversals, and hold cash during downturns and chaos, using limited opportunities to exit at the most certain points.

10. The Ultimate Key to Enlightenment: Deep Understanding, Cultivate Execution, Know and Do
Ultra-short trading is not about relying on a single strategy for a lifetime. In the era of quantification, continuous cognitive iteration is essential. True enlightenment involves developing top-level understanding of the market—recognizing details, cycles, and capital linkages; overcoming human weaknesses—greed, luck, impatience; and achieving unity of knowledge and action—following patterns, strict stop-loss, and knowing when to hold cash. Focus your limited energy on understanding the market, ensuring every trade has certainty in your mind rather than blindly gambling on luck.

Summary
This article condenses the core essence of Dragon Master @MainRiseLeaderKongKongLong’s ultra-short practical trading. Every word is truthful and replicable, based on practical experience. The essence of ultra-short trading is never “betting on涨停 through technology” but “following rules, riding cycles, and doing what’s certain”—controlling hands, restraining human weaknesses, seeking strong stocks through sector analysis, using cash to control drawdowns, switching trading modes according to cycles, and following capital to grasp key nodes. Ultimately, achieving unity of knowledge and action and stable profits.

The market is always changing. In the era of quantification, continuous thinking iteration is necessary. There are no unchanging strategies—only rhythms that fit the market. May every member of the ZhiJia Army remember the principle of “Risk First, Capital First,” absorb the essence of this article, abandon luck and greed, restrain oneself in ultra-short trading, stick to patterns, avoid detours, and move forward steadily. Let’s work together in 2026 to enjoy gains and achieve wealth advancement. Once again, gratitude to Dragon Master for his selfless preaching, and best wishes to every trader who remains true to their original intention—may you find your own path to profit in the market.