What is the most common mistake made in short-term trading? Hurry.

Many new traders (especially those with less than 3 years of experience) want to place orders immediately after the market opens, and get scared when the K-line moves slightly, fearing they will miss the opportunity. As a result, they often fall into the deepest traps. This habit must be changed, or else losses will only increase.

**The Correct Approach to Short-Term Trading**

If you want to profit from short-term trading without losing, these four points are fundamental:

First, focus on small timeframes. Short-term trading relies on minute-level fluctuations for profit. You must constantly monitor 1-minute, 5-minute, and 15-minute K-line charts. Longer-term charts are of little help for short-term trades.

Second, use a few precise tools. Don't pile up a bunch of indicators; focus on 1 to 3 core tools (such as candlestick patterns + moving averages + volume). Having too many tools can lead to analysis paralysis.

Third, enter and exit quickly. Set profit targets at $4 to $9 per trade, and strictly limit stop-losses to within $1 to $2. Close the position immediately upon reaching the target. Don't be greedy for bigger profits; the market will give you opportunities, but only if you survive long enough.

Fourth, choose the right time period. The market is usually most active during the London open, offering more trading opportunities. During quiet periods, instead of staring at the screen and fiddling, it's better to rest.

**Four Essential Tips to Avoid Pitfalls**

Experienced traders know these pitfalls are very costly:

1. Stay out of the market during the first 8 minutes after major data releases. Events like Non-Farm Payrolls or CPI often cause spreads to widen and slippage to occur. No matter how precise your technical analysis, you can't withstand the market tearing apart.

2. If losses exceed $3, cut your losses immediately. Don't try to hold through rebounds. Short-term positions turning into medium or long-term trades can eventually wipe out your capital. Stop-loss is the only way to stay alive and exit the market.

3. Even for short-term trades, look at the 1-hour trend. Even if you hold a position for only a few minutes, use the 1-hour K-line to judge the trend—if EMA is upward, only go long; if downward, only go short. Trading against the trend is essentially asking for trouble.

4. Control your trading frequency. Limit yourself to a maximum of 4 trades per day. Over 85% of the time should be spent observing and staying in cash. Frequent trading isn't really trading; it's just paying fees to the exchange.

**A Few Hard Truths**

The success rate of short-term trading generally ranges from 50% to 60%. What truly determines profitability is the risk-reward ratio. The goal should be a ratio greater than 2:1—for example, earning $6 while risking $3. Only then can you stay profitable with a 50% win rate.

Before risking real funds, it's recommended to practice on a demo account to refine your strategy. Once your strategy is stably profitable on the demo, then try with small amounts of real money.

Short-term trading is essentially dancing on the edge of a knife—discipline and strict stop-loss execution are the only things that can truly protect you.