Many people complain that short-term trading doesn't make money. In fact, most people fail because: first, they have to keep an eye on the market at all times, and second, the transaction fees for two-way trading are too high. For example, every time you buy and sell, the exchange takes a cut, which must be deducted from your profits. More critically, if you're not careful in short-term trading, you could end up trapped. Many people lack trading discipline; they hesitate to sell when they make a little profit, but stubbornly hold on when they’re losing, ultimately becoming long-term shareholders.
If you want to make a profit from short-term trading without losses, remember two tricks: either use an automated trading program to monitor the market 24/7, or set strict rules for yourself—like taking profits immediately after earning 10% or stopping losses as soon as you lose 8%. Whether it's spot trading or contracts, swing trading or leverage, strict discipline must be enforced. Here are a few practical tips:
Before opening a position, do not predict the rise or fall; set a stop-loss point for each trade in advance. Don't get hung up on the cost price; for ultra-short-term trading, focus on the most active varieties—those with high trading volume, active buy and sell orders, and leading the gains and losses. Avoid obscure coins.
Only look at real-time market data; a 1-minute chart is sufficient. Be alert when trading volume suddenly surges or buy and sell orders change significantly. Don't focus on complex indicators like MACD or KDJ; just observe the price and the relationship with the moving averages.
For real-time charts, watch these three lines: if the price line is above the yellow line (average price line) and constantly rising, go long; if the price line breaks below the yellow line and continues to drop, go short; if the yellow line is flat and the price is consolidating, then wait and see.
Specific operational techniques:
In an upward trend, wait for the 1-minute chart to show 'a bearish candle turns into a bullish candle + the moving average turning upwards' before entering the market. At this point, if sell orders are consumed by large orders, even small selling pressure can't hold it back.
In a downward trend, the opposite applies: wait for a bullish candle to turn into a bearish candle along with the moving average turning downwards to go short.
Timing for closing positions: lock in profits after earning 3%, and exit if there are long upper shadows or three consecutive bullish candles. If sell orders suddenly pile up but the price doesn't move, make a quick exit.
In sideways fluctuations, use grid trading; reverse your position when the price touches the yellow line.
Common mistakes for beginners: chasing after a surge without thinking, ending up as a bag holder; or stubbornly holding onto losses, eventually leading to liquidation. Remember, short-term trading doesn’t rely on how accurately you can predict, but rather on how strictly you can enforce discipline. Write down your trading plan before the market opens every day, and stop trading if you lose 5% that day—this is the secret to surviving long-term.
The market never lacks opportunities; the question is whether you can seize them. By following experienced and knowledgeable people, we can earn more! Read quickly and keep up!
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