Recently, many beginners have asked me how long short-term trading in stocks actually is. So I’ve organized my insights from these years.

Short-term trading, simply put, is trading over a short period of time, which can range from a few minutes to a few days. Some buy and sell within the same day, some hold positions for a week or two, but the core concept is to profit from price fluctuations within a relatively short timeframe. This is completely different from value investing where you buy and hold for ten years.

I’ve observed that the biggest problem for many people starting short-term trading is unstable mentality. Why is it easier to make money on a demo account but constantly lose in real trading? Ultimately, it’s about mindset. You must focus on a few key points: controlling emotions, managing capital, understanding losses, and always prioritizing risk management.

The most critical aspect of short-term trading is identifying the right buy and sell opportunities. I usually judge from several angles. First, look at the moving average lines, which are my most commonly used indicator. If the price is above the moving average and the moving average is diverging upward, it indicates the trend is still bullish. Second, understand the overall market cycle, which typically involves a period of range-bound oscillation, then a breakout, followed by an upward or downward trend, and finally entering an uncertain phase.

Regarding stock selection, my experience is to look for stocks with strong themes, high trading volume, and significant price volatility. Short-term trading doesn’t rely on fundamentals; the key is whether the turnover rate can amplify returns. When the market is highly volatile or a company has major news, these stocks often present good short-term opportunities.

In practical trading, I’ve summarized a few useful strategies. When the stock price starts to rise but the gains are still modest, and the moving average system shows a bullish alignment, I wait for the price to pull back to around the 5-day moving average before buying. If the market declines but a particular stock rises against the trend by more than 5% with increased volume, that’s also a good entry point. Another scenario is when a stock surges quickly and then drops sharply with decreasing volume; if the decline exceeds half of the previous gain, it might be a good rebound opportunity.

Also, be aware that if you make a wrong judgment, you must cut losses immediately—don’t hold onto hope. When the stock hits your target price, you should also decisively take profits. Greed is the biggest enemy in short-term trading.

I want to emphasize that technical analysis is especially important in short-term trading. The market always looks forward and reacts to current events. So instead of spending all day reading news, it’s better to focus on learning technical indicators and chart patterns.

Honestly, short-term trading can be quite volatile and difficult to predict perfectly, but if you can control losses, identify good entry and exit points, and effectively use technical analysis, you can still profit from it. That’s why more and more people are adopting short-term trading as a key strategy.