How can short-term trading really make money?
To be honest: short-term trading is originally a weapon for retail investors to turn the tables,
but most people end up getting hurt by it—it's not the market's fault, it's a mistake in strategy.
Step 1: Set a direction, don’t randomly choose coins
Limit yourself to trading a maximum of 1-2 coins per day, prioritize mainstream coins (BTC/ETH/SOL, etc.)
Principle: Only trade coins with a 'trend outline', avoid sideways coins/junk altcoins
Look at the structure: Has it broken through key candlestick levels (upper boundary of the box, trend line)?
Look at the sentiment: Is there unusual capital movement, volume coordination, sector linkage?
Reason: You are not an invincible warrior; the fewer trades you make, the more focused you are, and the higher your win rate will be.
Step 2: Test with a small position, don’t try to eat it all in one go
Start with 10%-20% of your total capital to build a position, testing the direction + rhythm
For example: if your account is 1000U
For the first test, only place 100-200U, enter with a light position
Once the position is in, immediately set a stop-loss (at lower support or when the pattern breaks)
Reason: Short-term trading is not about 'getting the first trade right', but being able to withdraw quickly if wrong, and scaling up if right.
Step 3: Increase position with floating profits, control risks
Once the position’s profit reaches +2% or more, consider 'increasing position', but don’t overdo it!
Each time you add to your position, do not exceed 50% of the original position, roll with profits
After adding to your position, follow up with profit-taking; for example, from +3% → +6%, then adjust the profit-taking line
Common misconception: Many people add to their position wildly after a small rise, but when the market reverses, what was once profit turns into a deep loss.
Step 4: Set stop-loss and take-profit, write them down before placing each order, clearly outline 3 points:
Entry price (at what position? Why?)
Stop-loss level (what to do if wrong?)
Take-profit line (how much do you plan to take? Under what circumstances to take half out?)
Recommended profit ratio targets: Conservative: take-profit 5%-8%, stop-loss 2%-3%
Aggressive: take-profit 8%-12%, stop-loss 3%-4%
Only take trades with a win-loss ratio above 1:2; if not achievable, don’t engage.
Step 5: Roll over positions and replicate, double the profits
Each time you make a profit, don’t just 'cash out', but continue to roll into the next round!
Withdraw part of the profit to make the next light-position test trade
If the trend is there, continue trading; if the market is weak, take a break
2-3 high-quality trades per week is sufficient for compounding growth
Lastly, a motivational boost for you: short-term trading is not about who makes money faster,
it’s about who lasts longer, loses less, and executes steadily.
