Three Iron Rules for Short-Term Trading in Cryptocurrency: The 'Quick Recovery' Strategy that Saved Me Countless Times!
In last year's bull market, I doubled my investment in a week, only to lose half of it back in two days.
It wasn't the market that changed; it was my lack of discipline. Later, I learned the three iron rules of short-term trading from an experienced trader in the crypto space, which helped me stabilize my approach.
First Rule: Lock in Profits, Protect Your Gains
Up 10%? Keep a close eye on the buying price and sell if it drops. Up 20%? Don't sell unless your profit is at least 10%. Up 30%? At least secure half of your profit before selling.
The cryptocurrency market changes in an instant, and it's impossible to catch the highest point, but if you protect your profits, your capital can grow exponentially.
Second Rule: Cut Losses Promptly, Never Get Attached to a Trade
If a position loses 15%, adjust according to your risk tolerance and exit immediately. Don't think “just wait a bit” for the market to come back—countless liquidation cases on Binance began with that mindset. Cutting losses is paying for lessons, not giving up.
Third Rule: Buy Low and Replenish, Average Down Your Cost
If the price drops significantly after selling and you still have faith in it, buy back the original amount; the coins remain the same, and you have more cash. If it doesn't drop much but rebounds to the selling price, buy back quickly; transaction fees are minor, but missing out is a fatal flaw. Coupled with cutting losses, this method can significantly reduce losses.
Later, I realized that the essence of short-term trading on Binance isn't about “impulsively grabbing hot trends,” but rather entering and exiting quickly with precision.
Don't be fixated on buying at the lowest and selling at the highest; that's a game for lucky players. It's good enough to be close; protect your principal, and you'll be qualified to wait for the next market wave.
