In every mid-term market cycle, there are actually a bunch of short-term opportunities hidden. If you look carefully, almost every week there’s a small wave that can be operated on, and each month there are visible short-term trends.

The problem is—why are short-term and ultra-short-term trades so attractive and yet so tricky? The time windows are narrow. You have to precisely time your entry and exit, which directly doubles the requirements for market sense and data accuracy. Take the fluctuation of US stocks from December 26 to 31 as an example; there were indeed many trading opportunities, but only a few could truly make money and exit unscathed.

Why? Because of greed. Using small capital to leverage short-term trades can indeed yield returns far beyond expectations in a short period, which makes it so tempting. But it’s precisely this temptation that causes many traders to be reluctant to take profits, always wanting to earn a little more or wait a bit longer. As a result, a pullback can wipe out profits, and sometimes you even have to exit at a loss.

The tolerance for error in medium- and long-term trading is much higher, but short-term trading is different. The challenges are clear, and so are the risks. The phrase “be brave to take profits” sounds simple, but in practice, it’s a fundamental skill that every short-term trader must cultivate.