For traders who have been in the market for less than 3 years, this bad habit of opening positions must be corrected immediately—otherwise, the losses will only get worse the deeper you go!

Where do most people's problems lie? As soon as the market opens, they can't resist their impulses, jumping in at the slightest fluctuation of the K-line, fearing to miss any opportunity. In fact, this is exactly the beginning of counterproductive trading.

Short-term trading is about precision, not speed. To avoid many pitfalls, these four steps must be thoroughly understood:

**First, seize the key cycle.** Short-term profits come from immediate fluctuations. The 1-minute, 5-minute, and 15-minute K-line charts are your main battleground. Don’t be led by long-term trends—that’s the game for medium and long-term traders.

**Second, use precise tools, not many.** K-line patterns, moving averages, and volume are enough. The more indicators piled up, the more confusing the signals become, ultimately leading to mental breakdowns caused by conflicting information.

**Third, set clear red lines for profit and loss.** Take profit at $4-$9, and cut losses immediately if it hits $1-$2. It sounds harsh, but this is the survival rule for short-term trading. Some think, "Wait a bit longer, maybe I’ll break even," but it often results in endless holding and eventually losing all capital.

**Fourth, timing is crucial.** The market is most active during the London opening hours, with many opportunities. During quieter periods, stubbornly trading only adds unnecessary fees to the exchange.

In practice, these pitfalls are deadly:

• **Stay out of the market 8 minutes before major data releases.** Non-farm payrolls, CPI, and other heavyweight data can cause spreads to explode and slippage to run wild. Any technical analysis is useless in such chaos.

• **Never oppose the main trend in short-term trading.** Even if you’re trading only for a few minutes, always check the 1-hour chart for the overall direction. If the 1-hour EMA is upward, only go long; if downward, only go short. Don’t try to "fight the trend."

• **Control the number of trades per day.** No more than 4 trades per day; the remaining 85% of the time should be spent waiting and observing. Frequent trading often results in fees eating up most of your profits.

• **Stop loss if losses exceed $3.** Turning short-term into medium-term, and medium-term into long-term, by stubbornly holding, will only evaporate your capital.

A very realistic statistic: the success rate for short-term trading generally hovers around 50%-60%. To make a profit in the end, the risk-reward ratio must be ≥2:1, meaning when you make $6, you only risk $3. Even with a success rate of only 50%, you can be profitable in the long run.

It’s recommended to first refine your strategy in a simulated environment. Once you can consistently profit, then start trading with small amounts in real markets. Short-term trading in crypto is like dancing on the edge of a knife—without discipline, you can’t go far.