Want to survive in short-term trading in the crypto space? Many beginners die because of a deadly habit: placing orders as soon as the market opens, fearing to miss half a minute of price movement, resulting in frequent stop-outs. This problem is more common than you think.

Friends with less than 3 years of trading experience, especially pay attention to this. I’ve seen too many people lose their principal in the first year due to overtrading. The key is, this trap can actually be avoided.

**Practical Framework for Short-Term Trading**

Trading short-term requires rhythm; don’t do it randomly. First, focus on small timeframes—1-minute, 5-minute, 15-minute candlestick charts are your main references. Longer timeframes can make you dizzy; second, don’t overdo tools—1-3 core indicators are enough (candlestick patterns, moving averages, volume). Too many indicators can confuse your thinking.

The third point is crucial: set clear targets and stop-losses. For example, set profit targets at $4-$9, and strictly control stop-losses within $1-$2. Take profits when targets are hit; don’t think you can catch the entire move in one trade. Fourth, choosing the right trading hours is important. The London open period usually has active volatility and more opportunities.

**Common Pitfalls That Can Lead to Losses**

Before major events (non-farm payroll, CPI), stay out of the market for the first 8 minutes. These data releases can cause spreads to widen and slippage to spike, no matter how good your skills are.

If your loss exceeds $3, cut your loss immediately—don’t wait. I’ve seen too many people expect a rebound, only to turn short-term trades into medium-term or long-term positions, eventually losing their entire principal. This psychological hurdle is tough, but it must be overcome.

Reiterate: short-term trading must not go against the overall trend. Even if you’re only trading for a few minutes, look at the 1-hour trend. If the 1-hour EMA is upward, only go long; if downward, only go short.

The last often overlooked point—don’t overtrade. Limit yourself to no more than 4 trades per day; over 85% of the time should be spent observing and staying out of the market. The only benefit of frequent trading is paying more fees to the exchange.

**Success Rate and Risk-Reward Ratio**

Honestly, the success rate for short-term trading is usually around 50%-60%. Achieving this level is already good. The key is the risk-reward ratio, which must be greater than 2:1 (for example, earning $6 while risking $3). Only then can you maintain long-term profitability even with a moderate success rate.

It’s recommended for beginners to thoroughly test their strategies on demo accounts first. Once you can consistently profit, switch to small real funds. This helps avoid large losses during trial and error. Short-term trading is like dancing on the edge of a knife; execution and discipline are your only protective gear.