Many people stare at the market every day while trading cryptocurrencies, yet they still get harvested. The biggest reason is not that they cannot understand the market, but that they lack a disciplined operational framework!
Today I share three iron rules of short-term trading that I have summarized with real money. Persisting in these over the long term can really help you control your win rate and drawdown to a comfortable range.
✅ 1. Principle of Profit Drawdown: Let profits protect themselves!
Many people make profits but then give them back, the fundamental reason is: there is no profit protection mechanism.
Iron Rule Logic: The more you earn, the tighter the protection; the larger the profit, the smaller the tolerance for drawdown.
📌 For example:
After buying and earning 10%: immediately execute capital protection (if it drops back to the buying price, unconditionally take profit).
Earn 20%: set a minimum to protect 10% of the profit, unless the technical analysis indicates a peak, otherwise continue to hold.
Earn 30%: at least protect 15% profit, exit if it drops below.
The essence of this operation is: it doesn't rely on guessing the peak but on the 'profit drawdown' to automatically adjust the position!
✅ 2. Principle of Capital Protection: First learn not to lose, then you can learn to make money!
The first discipline that must be adhered to: control losses!
After buying a cryptocurrency, if the loss exceeds 15% (you can set your own stop-loss threshold), you must unconditionally stop loss and exit.
Many people cannot achieve this, resulting in small losses turning into large losses, eventually leading to a situation where they 'hold until zero'.
Remember: a wrong position must pay a price, and the price is the loss itself.
The earlier you stop the loss, the more bullets you can keep to deal with the next wave of the market.
✅ 3. Principle of Buying Back at Original Price: If you miss the market, it's better to miss it beautifully!
This is a technique that many people don't know but is extremely practical.
📌 Key Points of Operation:
If the price of the coin pulls back after selling and you still have faith, buy back the same amount of coins at a lower price to earn back the difference + some extra USDT.
If you don't wait for the pullback and the price of the coin rises back to your selling price, then—unconditionally buy back at the original price!
This is actually a hedging operation against the fear of missing out.
You might think this just wastes another transaction fee, but this 'fee' can help you relieve a significant psychological burden of 'not daring to re-enter after selling'.
📌 Practical Advice: Apply the combination of three principles, only then will capital flow have rhythm!
For example:
Open position → Stop loss at 15% loss (capital protection)
If it hasn't dropped back to the stop loss but has risen → Strictly take profit using the profit drawdown principle.
After taking profit and it drops → Buy back at the low price; if it hasn't dropped and rises back to the original price → also buy back!
After practicing this pattern for a long time, you will develop a disciplined trading habit instead of an emotion-driven approach.
📌 Conclusion:
In short-term trading of cryptocurrencies, being slow is not scary, but being chaotic is. Keep these three principles firmly in mind, and you will find:
What makes money is not the technique, but the discipline; what turns over the capital is not belief, but rhythm.
If you find these three iron rules helpful, give it a bookmark, and feel free to comment on the short-term mistakes you often make. Next time, I will create a special series on 'Top Ten Mistakes Retail Investors Make in Short-term Trading'!
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