How can we master short-term trading- What are the risks associated with it

1. How can we master short-term trading? What are the risks associated with it? If you have money that you are looking to invest in the stock market, traditional wisdom would throw up a ‘Purchase and Hold’ strategy. Here, you can purchase the stocks and hold on to them for some time, ranging from weeks, months to years. Short-term trading refers to the strategy where one holds the stocks only for a few minutes to a few hours and sells out within the same trading session. Short-term trading is gaining popularity as a way to benefit from minimal market movements against the traditional long-hold method as market participants are becoming more aware and real-time information is becoming easily accessible. Here you can find more on short-term trading and the ways to master it. What is short-term trading? The trading strategy where the time difference between entering and exiting the market is short is termed short-term trading. This time range can simply be a few minutes, hours, or even a few days. With short-term trading, your primary focus is on price action and not on the longevity of any asset’s market value. In this trading method, which also goes by the term ‘active trading’, you stand a chance to profit from the swift market price movements. However, for

2. this, you must keep your eye on the market to make a quick move whenever there are fluctuations. To make this task easier, you may engage with qualified portfolio managers such as Teji Mandi, who will assist you in strategizing all your investments, including stocks. Most popular markets for short-term trading There are a ton of market options for short-term trading, and your choice would vary on the basis of your interests and personal preferences. The most popular markets are: Forex This market is known for its extremely volatile nature and is popular due to its array of currency pairs that are available for trading. Due to its volatile nature, the short-term traders have a plethora of occasions to trade on forex pairs, both in the short and long term. The forex market is also popular due to its liquidity, which allows you to enter and exit the market easily and quickly. Shares The stock market provides hundreds of shares to trade in, and this large variety is one reason why the share market is so popular. To invest in the share market, you can take two avenues: predicting the future market price of assets or investing via any share dealing service. Moreover, the gains you make from buying and selling stocks are taxable. Learn more about the rates applicable to this in our article on Taxes On Investments on the Teji Mandi blog. Indices Indices trading patterns have a similar pattern to that of share trading (like restricted market hours). In indices trading, you’d not be predicting any individual stock but the number of shares in different companies that are a part of the index. This offers a larger exposure to the market. Read More About short-term trading.