alaric
Excellent Contributor
joined discussion · Dec 10, 2021 20:25
The beauty of short-term trading
Unlike many gurus out here, I was never a fan of short-term trading. To me, it involved lots of risk and it wasn't something that was in my comfort zone. I thought it was just a gamble.
Then, I learnt from a few experienced friends that there was a process to do it - a systematic one which was very possible to master if I was willing to learn, and so I did.
I started reading about indicators, candlestick patterns and things I should take note of when doing short-term trading. I learnt to use RSI, MA, EMA and daily volume to assist me in my day-trading. I've also been keeping track of possible catalysts - stock splits, FDA approvals etc.
It's a brand new process altogether, something separate from investing. Day-trading or short-term momentum trading is almost like a discipline - you follow your rules no matter what company it is. And as you guessed, with higher risk, comes higher reward. Yet, managing your risk is absolutely necessary. Don't get carried away.