In the realm of stock trading, especially during periods marked by significant market downturns, conventional short-term speculative strategies often come with heightened risks. These risks are not just related to the probability of success, which tends to be low, but also to the potential for substantial losses when aggressive methods fall short. Yet, a subset of professional traders is driven by the imperative to generate returns, even amidst a prolonged bearish market. This persistent search often leads to the exploration of ultra-short-term trading strategies that can yield relatively high success rates in such challenging environments. One interesting strategy that has gained traction is the practice of capitalizing on price movements during the closing minutes of trading, particularly beneficial for those operating with smaller amounts of capital and seeking quick gains—a tactic that might also be advantageous in certain small-cap trading competitions.

This closing-time trading strategy is primarily designed as an ultra-short-term speculative approach. Just prior to the market's close—typically within the last thirty minutes—there's a tendency for increased volatility. The T+1 trading system, which restricts the timing of sell orders to the next trading day, further amplifies this urgency, thereby encouraging institutional traders to act within this condensed timeframe. There are occasions where a stock may show a consistently upward trajectory throughout the day, only to plummet just minutes before the market closes. Conversely, stocks that have stagnated or declined during the day can witness a dramatic uptick at the close. Thus, this period becomes specifically suitable for short-term investments utilizing smaller capital.

The strategy revolves around the principle of predicting market behavior based on its understood dynamics, aiming to capture the briefest trends within the market. By focusing trades within the last ten minutes of trading and the ten minutes preceding the next day’s opening, traders seek to secure profits from these rapid price movements.

To encapsulate, I propose a summary of effective tactics for employing this trading strategy:

1. Assessing Market Timing

Engaging in frequent short-term trades without regard to overall market movements is a risky endeavor known as a "perpetual motion" approach, a practice best avoided in trading. The optimal timing for trades would be after the market has experienced a significant decline and has begun to show signs of recovery, particularly on days when the first rebound candlestick appears. Experience reveals that trading is often most favorable during the last moments on Thursdays, especially following a steep market drop, or during the last trading day of the month.

Moreover, it is essential to consider the recent patterns of rebound following market declines—for instance, a tendency for leading stocks, which are volume leaders, to bounce back before smaller stocks follow suit.

2. Opting for Stocks with Low Volatility

Many short-term investors favor trading in stocks exhibiting high volatility, yet doing so in a bearish market can lead to disastrous outcomes stemming from unstable investor sentiment and broad market weakness. Stocks with lower volatility present a distinct advantage, reducing the likelihood of severe losses while providing sufficient market support for participation in new stock offerings.

From personal experience, I prefer two specific categories of low-volatility stocks:

The first category includes stocks with exceptionally low trading volumes. These stocks often have significant discrepancies between buy and sell orders, sometimes exceeding 1%. Investors must exhibit patience and consider placing lower buy orders to wait for favorable transaction opportunities. Generally, a more substantial buy order can trigger a price collapse, while insufficient demand could lead to last-minute price increases.

The second category involves stocks that have dropped below their net asset values or present low price-to-earnings ratios, such as highway stocks. These shares are appealing primarily due to their lower price points. Even if purchases are made slightly above market price, there typically will be orders beneath that price to facilitate smooth selling in the subsequent morning’s session.

3. Targeting Oversold Stocks

Within a bearish market, the impulse to chase after strong stocks is common among investors. However, this can lead to enormous dangers due to occurrences of price corrections and rotational declines. In practice, I tend to select oversold stocks that lack significant negative external influences. My strategy involves initially making small purchases and then logging a more substantial order at a lower price point, anticipating that frustrated institutional investors or large holders may attempt to drive up prices during the tail end of trading. It is crucial that once a buy order is placed, it should not be tampered with to avoid attracting the attention of the stock exchange. A cautiously low buy order is unlikely to execute immediately; however, even if it does, there remains potential for future profits in subsequent trades.

4. Choosing Stocks with Predictable Price Fluctuations

Recognizing stocks that display reliable patterns of volatility is equally significant:

• Patterns indicative of frequent bullish price movements, like those resembling a propeller effect.
• Stocks that tend to rise during tail-end trading sessions.
• Patterns where the opening price the following day consistently surpasses previous day’s closure.
• Importantly, stock prices should remain significantly below key moving averages—such as the 10-day and 30-day averages—to avoid being suppressed by these lines, especially when multiple averages intersect closely.

5. Favoring Stocks with Specific Catalysts

Should conditions permit, stocks that are buoyed by identifiable catalysts should take precedence in selection. Such catalysts might encompass pivotal shareholder meetings, crucial event approvals, performance announcement conferences, or deadlines for stock buybacks. Essentially, these stocks should present foreseeable event-driven pressures.

Ultimately, mastering the art of trading in a declining market requires a keen understanding of timing, stock behavior, and the overall market context. The careful selection of appropriate stocks combined with disciplined adherence to a well-considered strategy can lead to profitable outcomes, even in an environment fraught with challenges. Continuous learning and adapting one's approach in response to market conditions remain paramount for success in the world of trading.