Attention all crypto beginners—here are some common pitfalls in short-term trading. Today, we'll discuss them so you can avoid losing more money.

Many new traders have a common problem: as soon as they open the market software, they can't wait to place an order. Watching the candlestick charts jump, afraid of missing out on the opportunity in a blink. But what happens? They often miss the right chance and end up getting caught in a trade. The root cause is that they don't clearly understand what they're waiting for and don't know how to find an entry point.

Regarding short-term trading, timing is crucial. You need to closely monitor charts on 1-minute, 5-minute, and 15-minute timeframes, capturing even small price movements. But don't overdo it with tools—mastering 1-3 core indicators like candlestick patterns, moving averages, and volume is enough. The goal for short-term trades should be realistic: lock in profits between $3 and $8, and cut losses quickly if they exceed $1-$3. Speed and decisiveness are key principles.

Timing of trades also matters. Trading during high-volatility periods yields better results; the London open is often prime time. But there's a key pitfall to avoid: avoid trading within 5 minutes before major releases like Non-Farm Payrolls or CPI data, as spreads tend to widen and slippage risk increases significantly.

To avoid pitfalls, follow these iron rules: First, if losses exceed $2, cut your position immediately—don't hold onto hope. Short-term losses can turn into medium- or long-term traps if you don't stop. Second, even in short-term trading, always consider the larger trend on the 1-hour chart—if the 1-hour EMA is upward, only go long; trading against the trend is a death sentence. Third, control your trading frequency—no more than 5 trades per day, and over 80% of the time, stay on the sidelines; holding cash is also part of trading.

The data shows that short-term success rates are usually between 55% and 65%. Don't be scared by this number—the real secret to making money lies in the risk-reward ratio. As long as you maintain a 1.5:1 ratio (for example, aiming to make $5 while limiting losses to $3), you'll be profitable in the long run.

My advice: before going live, thoroughly test your trading strategy on a demo account until you can execute it consistently. Short-term trading is like dancing on the edge of a knife—discipline is your only protection.