3 Iron Rules for Short-Term Crypto Trading

1. Secure Profits and Protect Gains

When your coin rises more than 10% after buying, watch it closely. If the price drops back to your purchase price, don’t hesitate — sell decisively to protect your capital. If you’ve made a 20% profit, set a rule: don’t sell unless profits are above 10%, unless you see signs of a temporary peak. At 30% profit, keep at least half (15%) secured before selling. This way, even if you miss the absolute high, you still grow your money steadily.

2. Cut Losses Early, Don’t Dwell on Bad Trades

If your coin drops 15% (adjustable based on your risk tolerance), sell immediately to limit losses. This prevents deeper losses and keeps your capital safe. If the price rebounds later, don’t regret it — it just means your entry timing was off. Always set a stop-loss before entering a trade; this is essential for disciplined trading.

3. Buy Low to Lower Costs

If you sold and the coin’s price drops but you still believe in its future, buy back the same amount to maintain your holdings and increase capital efficiency. If the price doesn’t fall much after you sell and rises back to your selling price, buy back quickly — even if you pay transaction fees, this prevents missing out on gains. Combine this with stop-loss orders for better risk control. If price fluctuations become too erratic, consider choosing a new entry point.

Short-term crypto trading demands discipline and strategy — not guesswork or luck. Quick entries and exits aren’t impulsive; taking profits isn’t cowardice; staying in cash isn’t quitting. Focus on timing and principles, not perfection. Close enough can be good enough.