Friends who are new to the crypto world, really need to stop and think.
Many people open their trading apps, their fingers start to itch, and they want to place orders immediately upon seeing the K-line fluctuations. The mistake lies here — you're not truly trading, but rather driven by anxiety and impulsiveness, repeatedly paying tuition to the market.
Understand the rules before acting; this is the prerequisite for survival.
I used to do the same at the beginning. With the K-line constantly flickering in front of my eyes, afraid of missing the opportunity if I wasn't careful, I never thought about what waiting really means, nor did I know what I was waiting for. Later, I realized that short-term trading seems simple but actually involves many nuances. Today, I will break down the core logic of short-term trading with a real case.
**Four Key Points of Short-Term Trading:**
First, follow the market rhythm closely. Short-term relies on real-time price fluctuations, requiring you to watch 1-minute, 5-minute, and 15-minute charts. Don’t be lazy.
Second, use a few precise tools. 1 to 3 core tools are enough — candlestick patterns, moving averages, and volume. Master them thoroughly rather than using ten tools haphazardly.
Third, adopt a quick-in, quick-out mentality. Set profit targets at to @E5@ dollars, and strictly cut losses at to @E5@ dollars. Enter and exit swiftly; don’t drag.
Fourth, choosing the right time period is crucial. High volatility periods offer more opportunities, with the London open being a key trading window.
**The same important guidelines to avoid pitfalls in short-term trading:**
First, avoid the first 5 minutes after major data releases. Events like Non-Farm Payrolls and CPI can cause spreads to widen and slippage, easily trapping beginners.
Second, refuse to "hold on stubbornly." If losses exceed dollars, cut losses immediately. Don’t let short-term turn into medium-term, or it will be really hard to turn around.
Third, don’t go against the big trend. Even in short-term trading, you need to look at the trend on the 1-hour chart. If the 1-hour moving average is upward, only go long — that’s the baseline.
Fourth, control the desire to overtrade. No more than 5 trades per day, and over 80% of the time should be spent holding cash and observing, waiting for opportunities.
**Final core cognition:**
The success rate of short-term trading is usually between 55% and 65%. It sounds low, but the key is the risk-reward ratio. As long as the reward-to-risk ratio is greater than 1.5:1 (for example, earning $5 while risking $3), you can achieve stable profits over the long run.
Highly recommend testing your strategy on a demo account first, and only switch to real trading once it’s stable. Short-term trading is like dancing on the edge of a knife; discipline is the only protective gear. Without discipline, even the best techniques are useless.
Coins with high volatility like SOL, BNB, XRP are good targets for short-term operations. But remember — tools are just tools; execution is the key to winning or losing.