#数字资产市场动态 Crypto trading beginners, you really need to avoid these pitfalls

Traders who have been in the market for less than 3 years are most prone to making a fatal mistake—seeing a candlestick move and unable to resist placing an order, fearing to miss any fluctuation. But on the flip side, this is precisely the fastest way to lose money. If you don’t understand patience, then prepare to be taught a harsh lesson by the market.

Four key points for short-term trading

Trading short-term really boils down to four things. First, focus on small timeframes—the 1, 5, and 15-minute candlesticks are the main battlegrounds; longer timeframes will only make it harder to read the rhythm. Second, use precise but few tools—don’t pile on a bunch of indicators you can’t understand, just stick to candlestick patterns, moving averages, and volume. Third, take profits immediately—set a target of $4-$9, and exit if losses exceed $1-$2; don’t try to recover losses. Lastly, target high-volatility periods—market activity is most lively around the London open and close, so seize those opportunities; trading during quiet hours is a waste of time.

Common pitfalls in trading

Always stay out of the market 8 minutes before major data releases. For big reports like Non-Farm Payrolls or CPI, spreads will explode and slippage will be chaotic—no matter how good your technical analysis is, it won’t hold up. If losses exceed $3, you must cut your losses—don’t fight yourself. Short-term turns into medium-term, and eventually into full losses. Also, follow the trend—no matter how short your position, check the 1-hour chart for trend direction. If EMA is upward, go long; if downward, go short. Trading against the trend is suicide. Another easily overlooked point—manual trading discipline. Limit yourself to a maximum of 4 trades per day; 85% of the time should be spent observing. Frequent trading just hands over fees to the exchange.

Key data points you should know

The win rate for short-term trading is generally around 50%-60%, and it’s hard to get higher. The key to making money is the risk-reward ratio—ensure that your profits are at least twice your losses. For example, if you make $6, you should accept a loss of $3. It’s recommended to run your strategy on a demo account first, and only try with small funds once you achieve consistent profits.

Ultimately, short-term trading is like dancing on the edge of a knife; discipline is the only insurance. Without discipline, you will eventually be cut down by the market.