In the complex and ever-changing financial markets, it is crucial to follow a set of effective trading principles. The following six guidelines can help investors better grasp the market pulse and improve their trading success rate:

First, short-term trading requires vigilance. If the stock price falls below the 5-day moving average and does not recover on the same day, consideration should be given to exiting; once it falls below the 10-day moving average, decisive loss-cutting is necessary.

Secondly, the stock selection strategy should focus on trending stocks. Entry should only be considered when there is a clear upward trend, avoiding periods of decline or sideways fluctuations.

Thirdly, for stocks in a primary uptrend, the best buying opportunity is when the trading volume shrinks but the price is rising or consolidating. Once the trading volume significantly increases, regardless of the stock price trend, one should consider selling.

Fourth, long-term investment requires patience and focus. Conduct in-depth research and choose industry directions that you are familiar with and optimistic about, and wait for opportunities.

Fifth, whether for short-term or long-term, one should control the number of heavily weighted stocks. Once you decide to heavily weight, you should avoid frequently changing stocks and maintain the consistency of your strategy.

Finally, when market trends are difficult to assess, maintaining a cash position is also a wise choice. Sometimes, a week of observation may be more beneficial than blind trading.

These principles are derived from a summary of market experiences, aiming to provide reference for investors. However, the financial market is ever-changing, and investors still need to make prudent decisions based on their personal circumstances and the actual market conditions. Continuous learning and timely adjustment of strategies are essential to go further on the investment path.