In the cryptocurrency market, short-term trading is not as mysterious as everyone thinks.
The real core of short-term trading is discipline + execution, not prediction + passion.
Here are six short-term trading rules that I have repeatedly validated over the years:
Consolidation must lead to direction: Patience is an advantage.
Don't chase when the price is high.
Don't cut losses when the price is low.
If the market hasn't given a direction, it means there’s no opportunity.
The most profitable action at this time is — to do nothing.
Consolidation is a lurking area: If you’re going to blow up, it’s here.
During a consolidation period, it’s easy to get trigger-happy.
But the real approach is: wait for a breakout, wait for a pullback, don’t risk your life within the range.
Short-term trading is not about the frequency of operations, but about who can endure longer.
Buy on bearish candles, sell on bullish candles: Going against human nature is an advantage.
Enter when the price drops significantly, exit when it rises steadily.
It sounds simple, but it’s hard to do.
Most people panic and sell at the bottom, and buy at the top when they are overly excited.
If you just do the opposite, you have already surpassed many.
A sharp drop often presents an opportunity window.
Slow declines temper emotions, while rapid declines crush structures.
But high-quality rebounds often follow sharp declines.
The real opportunity is not in slow rises or slow falls, but in moments of emotional dislocation.
Pyramid-style position building: The friendliest method for small funds.
Do not go all-in at the bottom area.
Add a bit every time there’s a 10% drop, this is lowering your cost and increasing profit space.
This is one of the ways small funds minimize risk.
Once the market changes, act quickly, decisively, and cleanly.
In the case of a sharp rise followed by consolidation → first take back your capital, leaving only profits to experiment.
In the case of a sharp drop followed by consolidation → don’t hold on stubbornly, cut losses at the first opportunity.
Short-term trading is a fast-paced game; slow actions mean losses.
In summary:
Don’t guess, don’t chase, don’t gamble.
As long as you follow the rules, control your emotions, and execute steadily, you are already ahead of the vast majority.