Short-term trading refers to the practice of buying and selling financial instruments, such as stocks or currencies, within a short time frame, often within a single day or a few days. Traders aim to capitalize on small price movements, using strategies like day trading or swing trading to maximize profits. This approach requires quick decision-making and a keen understanding of market trends. Traders often rely on technical analysis, which involves studying price charts and patterns, to make informed decisions. Short-term trading can be risky due to market volatility, but it can also offer opportunities for significant returns if executed effectively.