Many newcomers to the crypto world have made the same mistake: seeing market fluctuations and impulsively placing orders, fearing missing out on the trend. The result? Their accounts become more and more bleak each day.

Short-term trading may seem simple, but in reality, it's dancing on the edge of a knife. Without strict discipline, you'll only lose more.

How can you avoid pitfalls? The core points are these three:

**Focus on the Right Timeframes**

Short-term charts of 1-minute, 5-minute, and 15-minute are your main battlegrounds, as they reflect real-time market fluctuations. Looking at all timeframes can lead to confusion.

**Keep Tools Simple**

Don’t pile on indicators; three core tools are enough—candlestick patterns, EMA moving averages, and volume. More tools mean more chaos, making it harder to find entry points.

**Quick Entry and Exit is Key**

Set take-profit targets at $3-$8, and strictly control stop-losses at $1-$3. If losses exceed $2, exit immediately—don't let short-term trades turn into a nightmare of being caught in a trap. Prioritize trading during high-volatility periods like the London open.

**Pitfalls to Avoid**

Never trade within 5 minutes before the release of Non-Farm Payroll or CPI data, as spreads and slippage are prone to widen. When the overall trend is unfavorable, avoid contrarian trades. Use the 1-hour chart to determine the direction—if bullish, focus on long positions. Limit daily trades to 5 or fewer; spend the remaining 80% of your time in flat positions, observing for high-probability opportunities.

**Balance Win Rate and Risk-Reward Ratio**

The average win rate for short-term trading is between 55%-65%, which may seem low, but the key is the risk-reward ratio. As long as you maintain a ratio of ≥1.5:1, you can achieve stable profits over the long term.

Use a demo account to repeatedly backtest your strategy, and only go live once you're confident in your logic. Trading discipline is your protective gear in the market—don't wait until losses pile up before regretting it.