Short-term trading, although risky, can be a potential path to financial freedom for those investors who are adept at grasping the pulse of the market. Here are seven core principles of short-term trading that every investor should ponder:

1. A slow pullback after a rapid rise may be a good opportunity.
When the market experiences a rapid surge followed by a consolidation or slight pullback phase, do not rush to sell. This is often a signal that the main funds are quietly accumulating. The key is to observe the changes in trading volume during the pullback; if there is no significant increase in volume, the market may still reach new highs.

2. Be cautious of slow rises after a sharp drop.
If you see the price suddenly drop significantly and then start to rise slowly, do not rush to enter the market. This kind of trend may be a strategy employed by large holders to gradually exit without attracting market attention. Rushing in recklessly may turn you into a bag holder.

3. The Importance of High Trading Volume
When prices are high, if the trading volume suddenly increases, do not rush to exit the market. This indicates high market participation, and funds are still actively trading. However, if the trading volume subsequently shrinks while prices continue to rise, it is necessary to be alert, as the market may soon turn.

4. The increase in volume at the bottom needs to be sustained.
Seeing increased volume at the market bottom does not mean to buy immediately. The real opportunity often comes from sustained volume, especially stable large trading volumes for more than three consecutive days, which indicates that the market's chip structure has stabilized.

5. Prices reflect emotions, trading volume reflects attitudes.
Market sentiment determines short-term fluctuations, but trading volume represents the actual actions of capital. Investors should pay attention to the consistency of market expectations; only when trading volume aligns does the market have sustainability. Greater focus should be on the intensity of sentiment and the direction of changes in trading volume, rather than overly speculating on market tops and bottoms.

6. The frequency of trading does not correlate with profitability.
Frequent trading is a common pitfall for retail investors. The more frequent the trades, the more likely it is to generate anxiety, which can lead to losses. True experts often focus on strategy formulation and execution, and can remain calm even when faced with temporary unfavorable situations.

7. Time is an important factor in wealth accumulation.
Although explosive growth may occur in the short term, true wealth accumulation requires the passage of time. Continuously applying a set of effective methods is more valuable than looking for new investment targets every day. As long as you can control greed and fear, and stick to the plan, even small amounts of capital can have the opportunity to achieve financial freedom.

These principles apply not only to short-term trading but also provide important insights for long-term investment. Investors should carefully weigh risks and returns based on their own circumstances and develop investment strategies that suit them.