Recently, some friends asked me how to play short-term trading, so I decided to organize my experiences and lessons learned over the years.

Short-term trading, simply put, is about quickly entering and exiting within a relatively short period, which could be minutes, hours, or even holding positions for a few days. This approach can make quick money, but the risks are also significant. I've seen too many people attracted by high short-term returns, only to end up losing everything. The key is to understand two things: first, how to identify the true buy and sell opportunities, and second, how to decisively cut losses when in a loss.

Regarding opportunities in short-term trading, there are actually three types. The first is the easiest to catch — when the market moves with large amplitude and lasts for a long time, and it's not hard to identify. These usually appear in clear trend segments. The second type has moderate volatility but occurs frequently; if you grasp the rhythm well, accumulating small gains can add up to a lot. The third, and riskiest, is during periods of extreme market volatility, when overbought and oversold conditions are common, and without real skill, it's easy to get liquidated.

The skill of identifying buy and sell points should be developed in your daily practice. Many people think that just watching news can help grasp the market, but in reality, the market has already reacted by the time you see financial news. Therefore, you must build solid fundamentals to seize opportunities at the right moments.

First, look at the moving averages. This is the most basic technical indicator, helping you predict price trends and identify support and resistance levels. When the price is above the moving average, it's generally bullish; below, it's bearish. Next, understand the market's cycle patterns. The market typically goes through four stages: range-bound oscillation, breakout, decline, and uncertainty. During the range phase, bulls and bears are fighting; once a breakout occurs, a clear trend forms. After breaking out, the price may rise straight up or gradually lift higher with peaks and valleys. When the price starts to fall back, distinguish whether it's a sharp drop or a rollercoaster. The final uncertain phase is the hardest to grasp, so it's best for beginners to avoid it.

Short-term trading also requires a good grasp of market trends. Trends can be long-term, short-term, upward, downward, or sideways, and the key is to follow the trend. If the overall market trend is unfavorable, your chances of success decrease significantly.

When selecting stocks, look for those with these features: have a theme (market hot spots or news-driven), high trading volume (good liquidity, easy to enter and exit), and large price fluctuations (more opportunities to profit). Short-term trading doesn't focus on fundamentals because even the best companies can experience pullbacks after rises. The focus is on technical analysis—finding resistance and support levels to trade within ranges or riding the trend long or short.

On the practical side, here are some specific short-term strategies. When a stock starts to rise with modest gains, and the moving average system is diverging upward into a bullish alignment, with a daily turnover rate around 3%, wait for the right moment. When the stock pulls back to the 5-day moving average, buy decisively. If the market declines but a stock rises against the trend by over 5%, and volume increases at the same time, that’s also a good short-term opportunity—consider buying at the close or during a pullback the next day. Another scenario is a stock that surges quickly and then drops sharply with decreasing volume; if the decline exceeds half of the previous rise, you can jump in to catch the rebound. When monthly and weekly candlesticks are at low levels, with the 3-day moving average rising on volume, and the 60-minute chart shows a volume-driven golden cross upward, with continuous volume and large buy orders appearing, it indicates the stock in a hot sector has just started to move, making it suitable for short-term entry.

Finally, and most importantly—mindset and risk control. Many people perform well in simulated trading but lose money in real trading because their emotions collapse. You must learn to control your emotions absolutely, manage your capital well, understand that losses are part of trading, and always prioritize risk management over profit. If you make a wrong judgment and buy at a low point only for the price to continue falling, cut your losses immediately. When the stock price reaches your psychological target, take profits promptly—don’t be greedy.

Short-term oscillations are hard to predict perfectly, but as long as you can effectively identify trading opportunities, control risks, and use technical analysis well, you can find your own rhythm in short-term trading. The key is patience—don’t participate in every market move; wait for truly good opportunities before taking action.