"You Can Make Good Profits by Short Term Stock Trading - Opportunities Always Present Themselves "

"Available Data, That Anyone Can Put Into Practice, Can Make You Profits in Days.
But ... With a Note of Caution"

Introduction

• Short Term Stock Trading is not for everyone but opportunities exist daily for making a "fast buck".  If the odds are in your favour why not take some quick profit?
  
  
• Use this indicator, it's right more often than it's wrong
  
  
• Here's another neat little trick that'll make profits quickly
  
  
• Why not become a Day Trader every once in a while.  Here's a technique that generates short term profits regularly
  

Warren Buffett says:

" Investment must be rational;
if you don't understand it, don't do it "

"What Would Warren Buffett Have To Say About Short Term Stock Trading?"

Short Term Stock Trading would be frowned upon by Warren Buffett and his followers.

And, to a certain extent, us too.  We don't really encourage its over-use.  But...

...if you're already running good profits on your Retirement Fund, it's good to risk a little and have a bit of fun.

The key word here is 'Risk'.

It may make you a quick buck here and there but it's no way to trade with your whole portfolio.  Around 10% of your total fund would be decent enough amount we'd recommend you 'play with.'  And that 10% must be out of profits already made.  Make that one of your  rules.

Who knows, you may make a quick turn literally overnight.  But don't get carried away - it could be more luck than management.

"How 'Short' is Short Term?"

Short Term Stock Trading is, by definition, contrary to what this website is all about.

However, for those individuals that do like to have a bit of fun and are prepared to risk a MINIMUM proportion of their portfolio, then why not?

We do it.  We short term trade quite frequently.  BUT with only about 10% of our total fund value.  No more.

The philosophy throughout this website is to invest for the long term with a goal of reaching retirement with a decent sized Pension Pot.

And investing for the long term requires a very different mindset to that of short term investing.

Before you even attempt to trade short term (sometimes called Day Trading), you MUST understand the risks involved.  Especially if the market is volatile.

Risk means that you can lose money.

Just imagine buying 100 shares of XYZ oil company at say £9 per share and then watch as they drop to £8, and then to £7, and then to £6 ....

Should you have sold?  It's not easy taking losses.  Especially if you're not used to having to do it.  But taking a small loss should be another one of your rules.

Experienced Day Traders know when to take losses and they accept them, because they trade frequently and work on the basis that they will be right more often than they are wrong.

They are hardened to it and super-disciplined.

But you're not.  And you don't need to be.

In the above scenario of a falling share, my guess would be that the average investor, who is Day Trading for the first time, would still be holding on to those losses.

So what point are we trying to make here?

The point is, Short Term Stock Trading is not for wimps.

If a trade does not go as expected, you have to be ruthless. 

Take the loss.

Some would argue it's not investing but speculating.

And we'd agree with them.

And that's why you should only "play" with about 10% of your total fund.  If at all.

And better still.  If that 10% is profit you've already made, then it will "feel" better.

So we think we've made our point.  Only Short Term Trade with a small percentage of your funds and even then, be ruthlessly disciplined.

O.K.  Suppose you've decided to trade short term.  What next?

If you take a glance at this website you'll see a section titled:  Stock Trading Strategies (could also be called Long Term Trading).

We created this new web page: 'Short Term Stock Trading' with a view to making a distinction between the two.

In this section you will only find trading strategies that are short term.  In some cases - very short term.

How do we define short term?  As already aluded to, Day Trading can be just that - within a day - sometimes as short as hours.

Other Short Term Stock Trading strategies can be anything from days to several months.

"Short Term Stock Trading Strategies That We Use "

There will inevitably be some common ground between 'Short Term StockTrading' and 'Longer Term Stock Trading'.  But, generally, Short Term Trading falls within the range of a day to several months.

Anything greater than that will fall into the longer term strategies section.
-------------------------------------------------------------------------------------------------------------------------
Sidebar: 

Remember, only trade with 10% of your total portfolio.  If you want to succeed with retirement investing you have to be disciplined.  And adhering to this rule is one of those disciplines.
-------------------------------------------------------------------------------------------------------------------------

Below is a short synopsis of some of the Short Term Strategies that we have used.  Just click on each to be taken to a more detailed analysis of any particular strategy.

First up is one of my favourites.  Buying just before results or company trading statements are announced.

But you can't just willy-nilly buy anything just because their final/interim results are out next Tuesday, or whenever.

You have to do some due diligence.

 xxxxxxxx Click here to find out how to. xxxxxxxxx

Other Short Term Stock Trading strategies you may be interested in are:

Independent Public Offerings (IPO)

Trading Public Holidays

Santa Claus Rally

Political Events

Economic Data

Director Dealings

Sudden, and sometimes extreme, movements in a share price

Spread Trading

We may have mentioned elsewhere on this web page that there is nothing on the above list that we haven't ventured into ourselves.

When we first began trading for our retirement we may not have done this Short Term Trading but now, as seasoned veterans, we have the confidence to do so.

Don't trade this way if you are not 100% confident in doing so.

And, do accept that Short Term Stock Trading is just a little bit of fun.  Don't suddenly think that you're the next Gordon Gekko.

The overall aim of this website is to gradually grow your Pension Pot using Long Term Stock Trading. 

Never lose sight of that fact.

Conclusion

Perhaps this webpage should not even be a part of this website. 

The website is about Retirement Investing which really means, investing for the long term.

We have incldued it for information only. 

We do not advocate Short Term Trading but thought that we would make a (very) brief mention of it. 

If you are not fully confident in any short term trade that you do, don't do it.  And remember, Stort Term Trading is for experienced investors only. 

Do not speculate with money in your Pension Pot.

1. Home
›
2. Stock Trading Strategy
›
3. Short Term Stock Trading