Friends who have just entered the crypto trading world, don’t rush to go all-in. I want to share some real trading experience; if it can help you avoid detours, then it’s worth it.

Especially for newcomers or those with limited trading experience, there’s a trap you must avoid — many people lose money because of this habit.

Opening the chart and wanting to place an order immediately is a deadly mistake. I used to do the same, watching the candlestick movements and fearing missing out on the trend, but the more anxious I was, the more chaotic it became. When I finally placed an order, I realized I hadn’t thought clearly about what I was waiting for or what I should wait for. So today, I’ll break down with a real short-term example: what should you wait for, and how to find a reliable entry point.

**Core logic of short-term trading:**

1️⃣ **Keep a close eye on market movements** — short-term trading relies on immediate fluctuations, focus on 1-minute, 5-minute, and 15-minute chart rhythms

2️⃣ **Indicators are not numerous, but precise** — choose 1-3 indicators you’re comfortable with (a good combination is candlestick patterns + moving averages + volume)

3️⃣ **Fast in and out principle** — target profit per trade of $3–8, set stop-loss at $1–3, to prevent losses from exceeding expectations

4️⃣ **Choose the right time window** — volatility is usually more obvious during the London session opening

**Pitfall checklist (must-read):**

1️⃣ **Don’t touch data in the first 5 minutes** — releases like Non-Farm Payrolls, CPI can cause spreads to explode and slippage to be severe; it’s not worth it

2️⃣ **Stop loss if loss exceeds $2** — the biggest danger in short-term trading is “holding on stubbornly,” once it drags from short-term to mid-term, the risk chain is broken

3️⃣ **Don’t trade against the main trend** — even when trading short-term charts, glance at the 1-hour trend (for example, if EMA is upward, only consider long positions)

4️⃣ **Control your trading frequency** — no more than 5 trades per day; 80% of the time should be spent observing in cash rather than randomly placing bets

**The most critical point:**

The success rate of short-term trading is usually between 55%-65%. Success isn’t about having a high win rate, but about maintaining a profit-to-loss ratio of above 1.5:1 (for example, earning $5 while only risking $3). Truly consistent traders build their wealth through this compounding method.

I recommend testing your strategy on a demo account first, find a stable rhythm before going live.

Short-term trading is like dancing on the edge of a knife; only two things can save you: discipline in stop-loss and risk management.