What is short term trading?

 Short-term trading is a trading strategy that involves holding positions for a relatively short period of time, typically a few days or weeks. Short-term traders aim to capitalize on short-term price movements and seek to profit from changes in the value of financial instruments over a relatively short period of time.

Short-term traders often use technical analysis and chart patterns to identify buying and selling opportunities, and they may use a variety of financial instruments, such as stocks, currencies, and futures, to execute trades. They may also use leverage, which allows them to trade larger positions than their account balance would normally allow.

Short-term trading can be a high-risk, high-reward strategy, and it is not suitable for everyone. Short-term traders must be able to manage their emotions, as well as their risk, and they must have a strong understanding of the markets and the financial instruments they are trading. Short-term trading requires a significant amount of time and attention, and it is not a passive investment strategy.

Overall, short-term trading can be a challenging and demanding career, but it can also be rewarding for those who have the skills, knowledge, and discipline to succeed. It is important to note that short-term trading is not the same as day trading, which involves holding positions for only a single day.