Short Term Trading Strategies that Work

Posted by Jeremy Anderson Dec 16, 2019
If you are eager to get interested in the world of forex but are unsure about whether or not you are willing to make a long-term commitment, then a short term trading strategy may be ideal for you. Within the world of trading there are three main types of time frames that can be shot for, either a long run, short term and something in between. Even within the short-term category, there are numerous variations of the time objective as for some it could be a few weeks whereas for other asset types it could be mere minutes. Let us explore some of the most profitable trading strategies within a shot time frame.

The Strategies To Be Discussed:

  1. Day trading
  2. Position trading
  3. Swing trading
  4. Scalping

Day Trading

This particular plan of action is where investors engage in both the purchase and sale of a security within the same twenty-four hour period. This would mean that the security cannot be kept longer than the closing of the day. In previous years, this particular form of forex tactics was employed mainly by qualified traders, however thanks to the advent of the internet it has now risen to become the most infamous form of short term strategy.

Day Trading

Position Trading

Short term trading strategies are often thought to be in the moment decisions spurred on by instinct, however, position trading relies on the thorough analysis of trends. Once someone has bought a security, they will then wait and observe the historical trends as well as future predictions, in order to capitalize on the sale. This could result in holding the security for a few weeks or maybe even longer, it all depends on the data. The main strategy is not to look for specific price levels, but rather for signs of extreme highs and lows within the behaviour of a security. This particular strategy is not especially useful in times of extreme market flux, as it can be hard to apply any real trends to securities in that type of a situation.

Position trading

Swing Trading

The thrill of watching as a security keeps going from strength to strength is what draws so many to the world of investing. Swing traders use the indication that a trend characterizing a security is about to break and aim to make the most out of the ensuing price flux. The security can be held for anywhere between a one minute and a few days. Most investors engaging in this school of investment thought would use an algorithm to assist them.

Swing trading


Possibly the most lauded of the short term strategies, scalping is where traders take advantage of the disparity between the bidding price and the asking price – meaning purchase at the former and sell at the latter price. As a scalper, you would only keep the security for a very minimal period of time.
Hopefully, this article has shed some light on short term trading strategies that work. Now that you know more, get in on the game and try your hand at short term trading today!

Jeremy Anderson

He worked for NYSE American as a broker for over two years. Distinguished with high performance working with binary options and stocks of increasingly popular products.

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