Insights on Short-Term Trading Strategies

Always asked how to get started with short-term trading? Make one thing clear: short-term trading is not based on intuition—it’s more like a rhythm-based response, testing judgment, and even more so discipline.

First, look at the trend. Where is the price currently? Which areas act as resistance, and where are the support levels likely to form? These are not static theories but reference points to evaluate “whether it’s worth participating.”

Next, analyze information. It’s best to anticipate factors that could influence market sentiment in advance, rather than waiting for clear news to follow. When the market shows corresponding volatility, respond decisively. Take profits promptly, as delayed actions often lead to poor results.

There are mainly two common approaches:
1️⃣ Intraday closing—only seize opportunities within the day, exit with profits, and avoid holding positions overnight—most importantly, avoid turning short-term trades into holdings, which leads to passive responses.
2️⃣ Follow through after volume and stabilization at key levels. If the trend underperforms expectations, adjust promptly without relying on luck.

Swing trading can also be seen as an extension of short-term strategies: only capturing relatively clear segments of the trend, avoiding predicting extreme points or engaging in unfamiliar market movements.

Regardless of the method chosen, these two principles should be adhered to:
▫️ Set a clear exit threshold for short-term trades—participating without a plan is akin to losing control over risk;
▫️ Control trading frequency and reduce emotional interference—impulsive trading gradually impacts account stability.

Short-term trading offers room for gains, but the prerequisite is to stay rational and disciplined. Ensure continuous participation and maintain a solid foundation before waiting for opportunities that suit you.

Ultimately, the contest in short-term trading is not about how much profit is made in the short run, but about who can stay steady and sustainable over time.