Short term trading, also known as day trading is the practice of trading in the stock market or the futures market for a few hours on a weekly or daily basis. Here are some points that help in better understanding of short term trading:

• Knowing the stock or the futures market, the way stocks move up and down, keeping a watch on the average price of a stock over a period of time, and understating the market cycles, trends, patterns, volume and volatility holds the key to your selecting the right stocks and deciding when to buy or sell them in the short term! This helps you get more attuned to what makes you win.
  
  
• Go through the strategies, the methods that will help you gain success in short term trading. Always adopt simple, uncomplicated methods rather than the more technical, confusing ones!

• Hope for the best, but prepare for the worst. Trading in financial instruments like stocks etc. is always a risky proposition. Don’t always expect to win. In short term trading your strategies should be such that you lose the least, if you have to! Opt for the ‘buy stop’ or ‘sell stop.’

• Always take the help of indicators like the stochastic oscillator and the RSI or the relative strength index to decide on the right time to buy and sell.

Understanding the tips and techniques of short-term trading makes you better at it and enables you to win the kind of money you expect.