Trading short-term contracts, the biggest fear is accidentally opening a position with a loose finger. New traders are especially prone to falling into traps—they always feel like they miss the moment as soon as the market turns, which makes them uneasy and results in even bigger losses.

I used to be like that too. Staring at the candlestick chart, I’d start to itch up and down, thinking "If I don’t get in now, it’s gone," without considering whether it’s the right moment to act. Only later did I realize that waiting and observing are much more important than rushing in blindly.

The key is to know what to wait for and how to pinpoint the right moment to act. Let’s take short-term trading in cryptocurrencies as an example:

**Focus on three timeframes** — 1-minute, 5-minute, and 15-minute charts best reflect the market’s real-time temperament. Longer timeframes are too slow to react to, and shorter ones are noisy. These three middle ones are most effective.

**The simpler the tools, the more flexible you are** — I’ve seen many traders overwhelmed by indicators like MACD, KDJ, Bollinger Bands all at once. Actually, it’s unnecessary. Mastering candlestick patterns, EMA moving averages, and volume alone is enough to sustain you for a while. Too many tools just clash with each other.

**Speed is life** — Short-term trading is all about quickness. Take profits of $3-$8 and lock them in, set stop-losses of $1-$3 and don’t hesitate. During high-volatility periods like the London open, opportunities are more frequent, so watch these key moments to act.

**A few pitfalls to avoid**: Before major data releases like Non-Farm Payrolls or CPI, the spread can explode and slippage risk is high—stay completely still. If losses exceed $2, close the position immediately—don’t let short-term trades turn into long-term nightmares. Don’t trade against the trend blindly; use the 1-hour EMA to set your direction. If it’s bullish, focus on long positions. Keep daily trades under 5; spend the remaining 80% of your time patiently waiting for truly valuable opportunities.

In short, the win rate for short-term trading is inherently not high—around 55%-65%. The real secret to making money is maintaining a profit-to-loss ratio of over 1.5:1. This means being aggressive when you’re winning, and decisive when you’re losing.

Before starting, thoroughly test your strategy on a demo account until it’s stable, then go live with real funds. Short-term trading is like dancing on the edge of a knife; discipline is your protective gear.