Many people wrongly think that if you hold onto a trade for the long term, you’re sure to make money. But what they don’t understand is that to consistently “eat meat” in short-term trading, it’s never about frequent operations—it’s about a complete and rigorous set of methods.
For long-term trades, you rely on commitment and belief in the position. For short-term trades, you rely on execution rules. Random actions like blindly chasing breakouts and panic-selling against the trend ultimately amount to sending money away.
Real mature short-term trading has an execution framework that can be repeated and put into practice.
First, trade in line with the trend to set direction. During the first half hour after the market opens, identify the core intraday trend, and only place orders in the direction of that trend. Absolutely do not take counter-trend bets.
Second, fix the risk/reward ratio and follow it strictly: a 1% stop-loss and a 2% take-profit, maintaining a 2:1 reward-to-risk ratio. Limit yourself to three trades per day. Even if your win rate is above 50%, the whole account can still achieve stable positive returns.
Third, take profit decisively and don’t linger. In short-term trading, you’re earning from market volatility. Once you reach the target price, exit promptly. Don’t cling to the remaining portion of the move and greedily wait for “just a bit more.”
Fourth, cut losses quickly and stop trading immediately. After two consecutive losing trades, stop trading right away. This prevents getting emotionally carried away and “doing more trades, losing more money.”
With short-term stability and profitability, you don’t rely on a perfect or near-perfect win rate—you rely on running a statistical edge generated by rules. Frequent trading with no method is destined to be difficult to remain profitable over the long run.
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