Not long after entering the crypto space, one of the easiest mistakes to make is rushing to place orders whenever you see market fluctuations, fearing missing out on a trend. I’ve also fallen into this trap—staring at the K-line’s ups and downs makes me anxious, with thoughts like "miss this wave and I’ll lose," without considering waiting for the right entry point.

For short-term cryptocurrency trading, there are really three key principles:

**1. Watch the right cycle.** Short-term charts of 1-minute, 5-minute, and 15-minute are necessary to align with the market’s actual volatility. Longer cycles respond more slowly and are more prone to being trapped.

**2. Don’t overuse tools.** Focus on mastering 1-3 indicators such as candlestick patterns, EMA moving averages, and volume. Overloading with too many tools can lead to confusing signals.

**3. Enter and exit quickly.** Aim for a profit of $3-$8 and take profits promptly; set stop-loss within $1-$3. During high-volatility periods like the London open, opportunities are plentiful but risks are high, so speed is essential.

Avoid these pitfalls: don’t trade during the first 5 minutes before major data releases like Non-Farm Payrolls or CPI, as spreads and slippage can cause you to lose confidence; cut losses immediately if you lose more than $2—don’t let short-term trades turn into mid-term traps; use the 1-hour EMA to determine trend direction—only go long in a bullish trend, don’t trade against it.

Another key number: limit to 5 trades per day; keep the rest of 80% of your time in flat position and observe. The win rate for short-term trading is generally between 55%-65%, and real profits come from a risk-reward ratio of at least 1.5:1.

It’s recommended to first test your strategy on a demo account until you can consistently make profits before going live. Cryptocurrency short-term trading is truly a dance on the edge of a knife; discipline is your real armor.