Six Major Rules of Short-term Trading, Every Move Hits the Mark. If you want to profit in the crypto world through short-term trading, these six iron rules must be firmly remembered; they are hard-earned practical experiences gained through blood and tears.

First Rule: The Law of Consolidation Must Change

When the market is consolidating at a high level, don’t rush in; the market makers love to create a false breakout to lure you in, then turn around to harvest. When the market has been low for too long, don’t let your guard down; real crashes often come suddenly at the moment you think, 'Why isn’t it rising yet?'. Until the direction is confirmed, it’s more important to hold back your hands than anything else.

Second Rule: Consolidation is a Liquidation Trap

You might think nothing is happening in the market, but 80% of liquidations actually occur during consolidation periods. Those who can’t stand it and get itchy hands often fall in this lonely market. A prolonged consolidation must lead to movement, but when the direction is unclear, making a move is risky.

Third Rule: Buy on Down Days, Sell on Up Days

Most people panic when they see a big bearish candle and chase after a big bullish candle; this is exactly the opposite of what should be done. True experts prepare to enter the market at the moment a big bearish candle falls. Being greedy when others are fearful is true contrarian thinking.

Fourth Rule: Principle of Accelerated Decline

The slower the decline, the softer the rebound; the sharper the decline, the more violent the rebound. The next time you encounter a waterfall-style crash, don’t be afraid; it may very well be the start of a significant rebound. When market sentiment is extremely fearful, it is often when opportunities quietly arise.

Fifth Rule: Pyramid Positioning Technique

Truly smart funds never go all in at once. Add 10% of your position each time the price drops by 10%, this way, the lower it drops, the cheaper it gets, and your cost basis can be pushed lower. When others are shaken out, you are still in the game, and when the market rebounds, you will be the first to profit.

Sixth Rule: Clearing Position During Market Change

When a surging coin starts to consolidate, don’t be greedy; first withdraw your principal and let the profits stay in for a gamble. When a crashing coin is consolidating and playing dead, don’t harbor any luck; cutting losses must be quick, accurate, and decisive. All hesitation ultimately leads to a slow loss.

Summary:

Short-term trading is not about intuition or news, but about understanding, strategy, and execution. The market is unpredictable, and emotions are the easiest to deceive you; only those who master these principles can survive the fluctuations and temptations to make money.

Trading crypto has never been just about technique and luck; it is also a contest of mentality, discipline, and wisdom.