Many people lose more the more they trade in the crypto space, not due to lack of opportunities, but due to a lack of "actionable rules." Today, I’ve summarized the "key points of short-term trading + life-saving mantras" from years of experience in pitfalls. Remember to follow these to avoid at least 80% of the traps and get closer to stable profits!
1. Eight core principles of short-term trading: each lesson is a life-saving lesson learned.
If you want to make quick money in the short term without stepping on landmines, these eight points must be ingrained in your mind:
Focus only on mainstream coins, avoid obscure ones.
Look only at the top ten mainstream coins (BTC/ETH/SOL, etc.) daily; don’t get distracted by "altcoin surges" — combine hot news (such as ETF approvals, public chain upgrades) + daily MACD golden crosses / BOLL squeezing, specifically choose those with large volatility but stable liquidity. Avoid obscure coins even if they rise, as they are easy to enter but hard to exit.Position size is essential; don’t recklessly chase after it.
For example, if you have 50,000 capital, split it into 5 portions (each 10,000, accounting for 20%) and only use 1 portion to build your position at a time. Don’t think "splitting positions earns less"; you should know: if you lose 50% in a full position, you need to double to break even. If you split, even if you make mistakes, you still have bullets to turn around.Never go all in; keep half as bullets.
The maximum position size for a single trade is 50%; even if you’re optimistic about the market, you must keep half in cash. The crypto space is full of "sudden opportunities," and going all in means you’re pushing yourself to a dead end. When corrections happen, you can only watch helplessly, without even money to average down.Control your hands! A maximum of 3 operations per day.
Going long and making mistakes is the truth! Many people open 10 trades in a day, exhausting their capital with transaction fees, and they easily get more anxious and frequently change strategies. Set a limit of 3 operations per day, even if opportunities arise, resist the urge; doing less can help you capture better market trends.Don’t average down on losses; admit mistakes.
If you lose 30% after entering, don’t think about "averaging down to lower the average price" — this is not bottom fishing; it’s betting more money on an uncertain rebound. If the direction is wrong, averaging down will only lead to more losses. It’s better to stop loss and exit immediately, keeping your capital for the next opportunity.Set a stop loss at 30%; if it breaks, don’t hesitate to run.
Set a stop loss line at 30% in advance, regardless of whether it rebounds later, if it breaks, close the position. How many people have ended up losing 80% instead of just 30% because they thought "just wait a bit" or "it’s about to rebound"? Remember: holding onto a losing position is not persistence; it’s giving money to the market.Don’t fall in love with candlesticks! Quick in and out.
Take profits once you’ve earned; don’t be greedy for "a little more rise." Short-term profits come from "the quick fluctuations," not from "long-term holding". Even if you only earn 5%, what you take home is real money. Holding onto unrealized gains while waiting for a pullback will likely end up empty-handed.Go with the trend; trends are more reliable than news.
Don’t believe in "altcoin insider information" or "exclusive news"; trends are king — trade long when prices are above the moving average, short when below. Following the big trend is 10 times more reliable than betting on news.
2. Twelve life-saving mantras in the crypto space: it’s advisable to memorize them! Avoid being harvested by market makers.
These 12 sentences hit the market makers' tricks; remembering them can help you avoid many cuts.
Don't panic and cut losses after a big drop in the morning; often there will be a recovery in the afternoon.
The morning session has large fluctuations, often due to market makers intentionally pushing down prices to scare retail investors. Don't rush to cut losses; wait for capital to flow back in the afternoon, and there's a high probability of a rebound.If there's a big rise in the afternoon, you should reduce your position; a pullback in the evening is normal.
When prices surge in the afternoon, don’t be greedy and chase the rise; often it's a trap set by market makers. An evening pullback is likely, so reduce your position in advance to secure profits.A rise on low volume can still increase, and a decline on low volume can still drop.
A rise or fall without transaction volume indicates the trend hasn't ended — a rise on low volume suggests that funds haven't fully exited, while a fall on low volume indicates selling pressure hasn't been released. Don't enter the market too early.A rise before good news often leads to a drop after the news is released.
"Good news fully priced in is bad news" is not an empty phrase! For example, before an ETF approval, funds had already risen, and when the good news is released, it can easily lead to a sell-off.During the day, a sharp drop domestically can be a buying opportunity; at 21:30, foreign investors often push prices up.
Be aware of time zone differences! Domestic trading during the day (Europe and America at midnight) has less capital and is prone to drop; after 21:30, the European and American markets are active, with funds often pushing prices up. Manage the time difference well.The deeper the spike, the stronger the buy/sell signal.
Extreme spikes are not risks; they're opportunities — a deep downward spike indicates strong support, which can be a buying opportunity; a deep upward spike indicates strong resistance, which can be a shorting opportunity.Heavy positions? Your name has long been on the liquidation list.
Market makers love retail investors with heavy positions! A slight fluctuation can lead to liquidation for those heavily leveraged. Light positions are the real foundation for survival.As soon as you stop loss on a short position, the price crashes — how can they push prices up without tricking you out of your position?
Don’t think it’s just "bad luck"; often market makers intentionally trigger stop losses to wash out retail investors' short positions before confidently pushing down prices. Don’t panic in such situations; next time, set stop losses and leave some buffer.Just a little more to break even? The rebound suddenly ends — market makers won’t let you escape easily.
Market makers know that "retail investors will run as soon as they break even," so they often crash the price just when you’re about to break even. In such situations, set profit targets in advance; don’t wait for a "full break even."When you take profits, prices soar — how can a heavy vehicle lift off?
As soon as you take profits, the price rises; it’s not "bad luck"; market makers want to wash out your "short-term profit positions" to reduce pressure for pushing prices up. Next time, keep some position to watch the trend.As soon as you get excited, a waterfall comes — excitement is just an illusion created by market makers.
When you think, "This time it will definitely double" or "The market is about to soar," it’s likely an illusion created by market makers to get you to buy in; excitement can easily lead you into a pit.When you have no money, every coin is rising — it's forcing you to FOMO into the market.
Don’t envy that "other people's coins are rising"; often it’s market makers intentionally pushing prices up to make you "afraid of missing out" and impulsively enter. Don’t FOMO when you're broke, and don’t buy recklessly when you have money.
Lastly: 80% of the crypto market is manipulated; it's not about who’s fast, but who can wait.
In this market, market makers understand your psychology better than you do — if you’re eager to enter, you become the prey; if you heavily bet, you end up on the liquidation list.
Those who can truly make money understand "delayed reaction": don’t chase rises, don’t panic when cutting losses; wait for market makers to reveal their intentions before taking action; don’t be greedy or impatient, control risk with position size and wait patiently for opportunities.
Remember: the crypto space is not short of "get rich overnight" stories, but lacks people who can "maintain profits steadily." Keep these words in mind and execute them well; you are just a matter of time away from success.
