The first three years of entering the crypto trading circle are the most critical—many people's first losses often stem from the same deadly habit: seeing volatility on the K-line and wanting to place an order immediately, always feeling that if they wait a second longer, they'll miss the opportunity. This "acting on every wind" approach can only lead to deeper and deeper losses.

Want to change this situation? The key lies in understanding what "waiting" really means. Short-term trading is not about frequent operations but about precisely capturing each high-probability opportunity.

**Four-Step Method for Short-Term Trading**

First, lock in the rhythm of small timeframes. Short-term profits come from immediate fluctuations, so your eyes must stay glued to the 1-minute, 5-minute, and 15-minute charts. Long-term charts only obscure local opportunities and are more likely to confuse you with noise.

Second, use a few precise tools. Many believe that more indicators mean safer trading, but in reality, this only confuses you. Focus on 1-3 core tools—such as candlestick patterns, moving averages, and volume—this combination can solve most problems. Overloading indicators only increases decision-making costs and makes it harder to decide at critical moments.

Third, act quickly and decisively. Short-term trading is not about holding positions long-term. Set profit targets between $4-$9, and once reached, exit decisively. Conversely, set stop-loss lines at $1-$2, and if triggered, cut losses immediately. Such discipline ensures that even if you suffer losses, you won't lose your principal.

Fourth, choosing the right time period is very important. The London open period is active and full of opportunities, making it the golden window for short-term operations. During quiet periods with low trading volume, volatility is hard to predict, so it's best to do nothing.

**Avoid These Pitfalls to Survive Longer**

Before major events like Non-Farm Payrolls or CPI releases, stay out of the market for at least 8 minutes. It's not about low risk but about uncontrollable factors—spread widening, slippage flying everywhere, and your stop-loss may not execute at all. This is not a technical issue; it's a market issue.

If a single loss exceeds $3, admit defeat immediately. Some traders stubbornly cling to their judgments and refuse to cut losses, causing short-term trades to evolve into medium-term trades, then long-term trades, eventually wiping out the account. This is called "slow suicide."

Even for trades lasting only a few minutes, always check the 1-hour chart for direction. This is a taboo in counter-trend trading—if the 1-hour EMA is above, only go long; if below, only go short. Fluctuations on small timeframes should be details within the main trend, not counter-trend gambling.

Overtrading is what exchanges love to see. Anyone making more than 4 trades a day is basically feeding the exchange's fees. Truly profitable traders spend 85% of their time observing and only act when high-probability opportunities arise. Holding cash is actually the most valuable.

**Remember These Key Numbers**

The success rate for short-term trading is usually around 50%-60%, which is already acceptable. The key is not how high your win rate is but your risk-reward ratio. If you can maintain a ratio greater than 2:1 (for example, earning $6 while risking $3), you can profit even with a 50% win rate. This is a math problem, not luck.

Want to test your trading ideas? First, run a few months on a demo account until you achieve consistent profits before entering real trading. Using real money to learn from mistakes is the most expensive tuition. Short-term trading is like dancing on the edge of a knife; discipline is the only thing that can save you—no skill can replace it.