The key difference between short-term and long-term trading styles lies in the time horizon of the trades. Short-term traders focus on making quick profits within a few minutes, hours, or days. They use technical analysis to identify short-term price movements, such as day trading, swing trading, or scalping. Short-term traders require a high level of discipline, risk management, and emotional control since they face rapid market movements and high volatility.

On the other hand, long-term traders aim to capitalize on the broader market trends over several months or even years. They use fundamental analysis to identify undervalued stocks, long-term trends, or macroeconomic factors affecting the market. Long-term traders require patience, a long-term investment strategy, and a focus on risk management, as they may face significant drawdowns or market fluctuations over time.

Overall, both short-term and long-term trading styles have advantages and disadvantages, and the choice depends on the trader's personal preferences, risk tolerance, and market conditions.

Short-term trading focuses on quick profits, holding positions for minutes to days, while long-term trading involves holding assets for months or years. Short-term traders rely on technical analysis, market volatility, and frequent trades to capitalise on small price movements. In contrast, long-term traders use fundamental analysis, considering economic trends, company performance, and growth potential.

Risk management differs significantly—short-term trading carries higher stress, transaction costs, and requires constant monitoring, whereas long-term trading demands patience, lower turnover, and benefits from compounding returns. Tax implications also vary; short-term gains often face higher tax rates compared to long-term capital gains. Ultimately, short-term trading suits active, risk-tolerant individuals, while long-term trading aligns with passive, patient investors.