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REDDIT

Your "Short-Term" Strategy is Wall Street's Profit Margin

E
Aug 6, 2026 · 05:31

If you started trading thinking that you will become a millionaire overnight then I have a news for you - you are just giving your money to the market makers, big institutions and hedge funds.

The very AI that you are supporting by buying the stocks is also empowering these institutions and algorithms to improve and make more money. Smart money owns the short term chart especially when a stock is heavily traded by retail and on high leverage. It becomes an easy target. They have a lot of money and mechanisms to take advantage and influence a stock price in the short term. They also have more data around it and lower latency for these algorithms to buy/sell before you even open a news or earnings report.

Looking at stocks like AMD, SNDK - they were already up 10 ish % before the earnings call and people were expecting it to go another 20-30% after the earnings. Even if that would have happened it's still an anomaly and not the rule. Learn to trade on fundamentals, earnings call, macros. It also builds a better character that helps in the long term. If you get lucky a few times you will get cocky and just gamble away money in the long term. STOP CHASING OVERNIGHT SUCCESS.


Smart money has a lot of money and tools to influence the stock price in short term, but there are a lot of good companies in the world doing well. They cannot influence all of them. Hence a better strategy is to trade more long term. It doesn't have to be 2-5 years but I think it's only fair to give a stock you truly believe in a quarter or more to prove its value.

As has been said before
\- be greedy when others are fearful and be fearful when others are greedy

\- don't put all your eggs in one basket.

\- true diligence and patience will reward you