In the early stages of entering the cryptocurrency market, many traders fall into a habitual mistake—seeing market fluctuations and unable to resist opening a position. This bad habit is often the main cause of continuous losses.

What is the most common situation? Opening the candlestick chart of Bitcoin or other coins, watching the price fluctuate nonstop, and feeling anxious—fearing missing out on opportunities—so rushing to place an order. As a result, after placing the order, they realize there is no clear trading plan, and they don’t know what they are waiting for or should be waiting for.

Let me use a practical short-term trading case to tell you how to accurately find the true entry point.

**Four Core Points of Short-Term Trading**

First, keep pace with the market rhythm. The essence of short-term trading is to capture immediate fluctuations. You need to focus on price changes in 1-minute, 5-minute, and 15-minute timeframes. Data from different periods will give you different perspectives on the market.

Second, simplify your trading tools. Don’t be dazzled by complicated indicators; focusing on 1-3 core indicators is enough—such as candlestick patterns, moving average systems, or volume data. Having too many tools can produce conflicting trading signals and reduce execution efficiency.

Third is the principle of quick battles and swift decisions. Profit targets for short-term trades are usually set at $3-$8 (adjusted according to the coin’s volatility), with strict stop-losses at $1-$3. Once losses reach the set limit, exit without hesitation.

Finally, choose high-volatility periods for trading. Market liquidity and volatility vary greatly at different times. The London opening hours are often the golden window for short-term trading, as market participation is high and price movements are more active.

**Four Pitfalls to Avoid in Short-Term Trading**

The first pitfall is entering the market 5 minutes before major economic data releases. Non-farm payrolls, CPI, and other key indicators can cause spreads to widen instantly and slippage to become severe. Trading at this time is extremely risky; it’s best to wait until after the data is released and the market stabilizes.

The second pitfall is stubbornly holding onto losses. If you are doing short-term trading, once a single loss exceeds $2, you must cut losses and exit. Many people are reluctant to stop loss, turning short-term trades into medium-term, and medium-term into long-term holdings, often resulting in deep losses. Short-term trading emphasizes quick stop-loss and quick profit-taking.

The third pitfall is trading against the major trend. Even in short-term trading, you should first look at the 1-hour trend. For example, if the EMA system is arranged upward, only consider long opportunities; if the major trend is downward, short opportunities should be prioritized. Short-term is tactical, trend is strategic; tactics must serve the strategy.

The fourth pitfall is overtrading. Many beginners think there are many opportunities and trade ten or more times a day. In reality, it’s recommended to limit daily trades to no more than 5; over 80% of the time should be spent in flat positions, observing and waiting for the most certain opportunities before acting.

**Realistic Expectations for Short-Term Trading**

The success rate of short-term trading is usually between 55%-65%. This number might be disappointing, but it’s the truth of the market. What truly determines whether you make money is not the win rate but the risk-reward ratio. Maintaining a ratio above 1.5:1 (for example, earning $5 while risking $3) can lead to stable profits over the long term.

My advice is to thoroughly test your trading strategy on a demo account first. Once you can execute it stably and the data meets expectations, then proceed with real funds.

Short-term trading is like dancing on the edge of a knife; the only thing that can protect you is trading discipline. There is no perfect strategy, only a strictly followed plan. Choose the coins that suit you, set clear rules, and resolutely execute stop-losses—that’s the essence of short-term trading.