Can I play short-term or ultra-short-term?
My answer is: Yes, but not for most people.
There are many excellent quantitative trading companies in the market that conduct high-frequency trading. The most famous one is Simons' fund, whose returns have far exceeded Buffett's for decades. These companies and top traders capture fleeting trading opportunities in the ever-changing market, and the average holding time for each operation is only one or two days. But the question is, can you do it? Don't take on porcelain work if you don't have the diamond drill.
Short-term trading requires an extremely complete trading system, superb trading literacy and rich trading experience. Even on these foundations, if you still have 1% of emotional fluctuations, it may lead to failure.
Many people like short-term trading because it fits human nature. The brain is not very sensitive to future rewards and needs timely positive feedback, so high-frequency trading can make people feel happy.
If you are determined to become a short-term expert, you must work hard in the following aspects, and this cannot be achieved overnight:
Establish a complete trading system: This system must be mature enough to cope with various changes in the market.
Strictly implement the trading plan: Be calm and follow the established strategy for every transaction without being affected by emotions.
Improve trading literacy and experience: Improve your trading capabilities through continuous learning and practice.
Turning yourself into a ruthless trading machine is the basic premise of short-term trading. Switching from long-term, medium-term to short-term trading is just a matter of choosing different lengths of trading cycles. It is not difficult to switch, but being able to remain calm after the switch is the real challenge. $BTC
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