Short-term trading has become the most viable option for traders worldwide in today’s modern technology. At a glance, it would seem that conducting trades with such little time spent is an unfair advantage. However, it is only through knowledge of psychology and financial markets that give them this edge so others cannot benefit from their earnings.

Every trader must see themselves as competing in a continuous battle with time. The amount of effort spent in perfecting your short-term trading strategies determines how far ahead of the curve you are when making decisions under pressure or at critical points when it comes time to act.

Much like any other mechanism, mastering these techniques takes years. Still, by following the steps below, you might be able to shave off some crucial time from your learning curve and get yourself closer than ever before to achieving that complete control over your investments that you always dreamed about.

Educate yourself

The first step is to arm yourself with as much information as possible. This means learning about the different types of short-term trading strategies available to you, the markets in which they work best, and how to apply them in real-time. You can do this by reading books, attending seminars or webinars, subscribing to trading newsletters, watching financial news programs, and following expert traders on social media. 

Start small

Don’t go in guns blazing with your entire portfolio. Start by allocating a small percentage of your capital to short-term trades and work your way up as you gain confidence. It can help you limit your losses if things don’t go according to plan.

Use a demo account

Practice makes perfect, which is especially true when it comes to trading. A demo account allows you to trade stocks using “virtual” money, so you can experiment with different strategies without risking any real capital.

Choose the right broker

Not all brokers are created equal, and some offer better platforms and tools for short-term traders than others. Before selecting a broker, please do your research and ensure their offerings fit your needs.

Use stop-losses

Using stop losses is essential in short-term trading, especially when there are no hedges to minimize losses. Stop losses ensure that any unforeseen large price movements do not cause you to exit at a loss. Often, traders will set their stops according to a percentage they believe will trigger if the price drops or rises too far from its current position. 

What this does is limit your losses within a certain percent of the current market value, but at the same time guarantee you out-of-the-money status. The shorter you make your stop loss, the riskier it becomes since there is a higher chance for prices to fluctuate outside these boundaries. On the flip side, longer stops mean less risk with smaller chances of losing money when trading with one stock.

Keep an eye on global markets

Markets are constantly in flux, so the best short-term trading strategies monitor several markets simultaneously. Look for tools that allow you to monitor changes across multiple exchanges or indexes at once 

Consider paying for services

There is no shame in paying for a service if it helps you make money, especially true for your financial interests. Just make sure they fit everything else you’re looking for first.


The steps listed above are just a starting point, but they should provide you with an excellent foundation to build your trading strategies. Remember, it’s important to tailor each strategy to fit your strengths and weaknesses, so don’t be afraid to experiment until you find something that works for you. With enough practice and patience, you can achieve mastery over short-term trading and reap the benefits that come with it. 

We recommend you practice your short-term trading strategy on a demo account before investing your money. Find a reputable online broker from Saxo Bank who offers the lowest commission and excellent customer service, and start your investment journey. For more information, check this here.