Recently, many people have asked me what short-term trading really means and how you can truly make money. Instead of talking at length, I’d rather share some practical experience straight away.

I’ve found that many beginners’ understanding of short-term trading is still stuck at the theoretical stage. In reality, short-term trading—put simply—is buying and selling within a relatively short period of time, profiting from the price fluctuations. Some people do day trading, completing a trade within a few minutes; others do swing trading, holding positions for several days to several weeks. The key is mindset and timing, not how long you hold.

I’ve seen too many people who had a pretty high success rate in demo trading, only to start losing money once they go live. The root cause is mindset. What short-term trading tests most is not technical ability, but execution and risk control. Can you cut losses decisively when you’re losing? And when you’re in profit, can you take profits in time? That’s the dividing line. Many people get greedy for that last little bit of profit, only to turn around and get trapped.

As for how to identify truly good buying and selling opportunities, my experience is to first look at the moving averages. This indicator is crucial—it helps you judge the direction of the trend. If the price is above the moving average, it’s usually bullish; if it’s below, it’s bearish. But just looking at the moving average isn’t enough—you also need to understand the market’s cycle pattern. The market generally goes through four stages: first, range-bound consolidation; then a breakout; next, an upward or downward move; and finally, a period of uncertainty. The trading logic in each stage is different.

I usually consider entering in these situations. First, when the stock price has just started rising but the gain is still small; the moving average system diverges upward and lines up into a long (bullish) setup; and the turnover rate is around 3%. At this point, wait for the price to pull back to the 5-day moving average, then buy decisively. Second, when the broader market is falling and a stock rises against the trend by more than 5%, along with increased trading volume—these stocks are also worth paying attention to. Third, after a quick rally, if the price drops sharply with shrinking volume, and the decline exceeds half of the prior rally, you can try to catch the rebound.

Regarding stock selection, short-term trading means amplifying returns through turnover, so whether the fundamentals are good or bad is not the main focus. What you’re looking for are targets with catalysts, high trading volume, and highly volatile price movement. These stocks typically show up when the market is volatile or when the company has major news.

I’ve always emphasized that the success rate of short-term trading depends on your win rate. Many experienced traders use backtesting software to verify their strategies, and that habit is worth learning. But even more important is to follow the trend. When the overall market trend is working against you, no technique can save you.

In the end, short-term trading means making profits within a limited time through technical analysis and risk control. Stop-loss comes first—at any moment, risk always takes priority over reward. I’ve seen too many people get liquidated because they can’t bear to stop the loss. Once you determine the trade is wrong, you must immediately accept the loss. Conversely, when the stock price reaches your target level, also take profits with discipline—don’t let greed undo all your progress.

The market always looks forward and reacts to current events. That’s why technical analysis is so important. If you want to practice, you can try it out on platforms that offer demo accounts first—no real money needed—to build experience. That’s how I started: repeatedly testing strategies in a simulated environment until I gained confidence, and only then going live.

Finally, what I want to say is that short-term swings are hard to predict perfectly. But by identifying potential trading opportunities, effectively controlling risk, and making good use of technical analysis, you can still improve your success rate. Remember: time will help you create profits, but only if you can stay in the game long enough.