The benefits of short-term trading mainly include the following points:
Controlled Risk
- Avoid overnight risk: Day trading does not carry positions after the market closes each day, eliminating concerns about the next day's trends and risks. This also prevents passive situations caused by sudden events, allowing investors to remain flexible and adjust strategies based on new circumstances at any time.
- Losses are minimized: Possible losses are spread across multiple trades, avoiding significant capital fluctuations due to a single trade error, thereby reducing the impact of any one trade on overall capital.
Increased Opportunities
- Capture high-frequency fluctuations: Although intraday market volatility may be narrow, there are rich fluctuations that can oscillate multiple times. Compared to long-term trading, short-term trading can increase trading opportunities, allowing for profit accumulation from multiple small fluctuations.
High Capital Efficiency
- Quick turnover: The holding period for short-term trades is short, allowing capital to quickly return, making it easier for investors to rapidly reinvest in the next trade, thus improving capital utilization efficiency. More trades can be attempted within a certain period, providing more opportunities for profit.#币圈起伏落袋为安