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Short-term trading

As explained in Investing for Programmers

Short-term trading is the buying and selling of assets over relatively brief time horizons to exploit price movements.

Short-term trading buys and sells assets over brief horizons, ranging from minutes to weeks, to capture price movements. Trades usually follow a predetermined strategy and may be executed manually. section 1.3.3

Common forms include:

  • Day trading opens and closes every position within one trading day, avoiding overnight holdings. section 1.3.3
  • Swing trading holds positions for more than a day, usually no longer than a few weeks, to capture short-term trends. section 1.3.3
  • Short-term allocations can serve as tactical satellites around a long-term portfolio core. section 1.3.4

Manual and automated execution

A trader may follow a predetermined day-trading plan manually, or automate its buy and sell rules using indicators such as price changes or volatility. section 1.3.3

How Investing for Programmers covers it

How deep it goes
Distinguishes minutes-to-weeks horizons and day or swing formats, but defers execution mechanics and risk controls.
Examples
Uses intraday positions, multi-day trend trades, and tactical portfolio satellites as concrete forms.
What you can do after
Evaluate whether a strategy fits a minutes-to-weeks horizon or a tactical portfolio allocation.
How it connects
Links short-term trading to day trading, swing trading, automated trading, long-term investing, and income investing.
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This explainer was generated by Manning's knowledge graph from the text of Investing for Programmers. The section links point to the parts of the book it draws on.