Trading short-term in the crypto space, I've experienced many losses from chasing highs and bottom-fishing. My account has been halved more than once, and that feeling really hurts.
After repeatedly struggling through failures, I gradually developed my own trading discipline. I wouldn't claim this methodology is very advanced, but honestly, it has saved me several times.
**Don't chase highs; wait for a pullback is the first rule.** The moment when the price breaks above the previous high is the most tempting, but the most tempting markets are often traps. My approach is not to rush in; wait until the price retraces to the lower or middle Bollinger Band before taking action. I'd rather watch the market run away than get caught in a trap.
**Never catch falling knives during a downtrend.** This is the second ironclad rule. When a knife is falling, no matter how itchy your hands, you must hold back. Wait at least until the 1-hour chart shows a consolidation pattern and the price stabilizes—that's when you can truly pick up bargains.
**The third detail is to avoid quiet periods.** Around 2:30 PM and after 10:30 PM, the market is often dead or barely moving. In such conditions, price action is most prone to distortion, and a false breakout can easily trigger your stop-loss. Missing these periods is much better than forcing trades during them.
**Volume is the real steering wheel.** Candlestick patterns without volume are fake signals—don't be fooled. Only when volume clearly increases does it indicate real money movement, and only then is the trend worth following.
**The last rule is that stop-loss must be a strict rule.** Before opening a position, you must have a clear trading logic, and the stop-loss level should be set in advance, and it must be tight. Once hit, admit your mistake and exit immediately. Losing money should be done with clarity, so you can learn from it for the next trade.
The key to winning in short-term trading isn't about who makes the most profit, but about who can survive longer. Sticking to these rules may not make your account skyrocket, but it will help you sit at the table more steadily, and that's enough.
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LiquidityOracle
· 01-06 05:10
It's really true, the moment you chase the high, your hands get itchy, and as a result, you're always the bagholder.
This set of discipline definitely works, especially that strict stop-loss rule, which has saved me countless times.
Honestly, breakouts without volume are all scams. I've seen so many times and still get fooled easily.
Waiting for a pullback tests human nature the most. Watching the market fly away helplessly is really painful, but it's much better than being trapped.
I've fallen into the trap of catching falling knives too many times. Now, when I see a downtrend, I directly go short, which is smarter than trying to bottom fish hard.
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SoliditySurvivor
· 01-03 22:41
That's so true, living longer is the key, more important than anything else.
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SchrödingersNode
· 01-03 10:38
These points are all valid, especially the one about not accepting flying knives, which is truly a lesson learned with blood and sweat.
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ContractTester
· 01-03 10:33
Damn it, it's the same old theory again. I just want to ask one thing: does stop-loss really work? Last time, I followed the rules properly, and at the moment I set the stop-loss, it directly reversed in a V-shape, and I lost money without seeing the subsequent surge. My blood pressure shot up.
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BlockTalk
· 01-03 10:22
This set of discipline is spot on, but the execution was a bit soft haha
Trading short-term in the crypto space, I've experienced many losses from chasing highs and bottom-fishing. My account has been halved more than once, and that feeling really hurts.
After repeatedly struggling through failures, I gradually developed my own trading discipline. I wouldn't claim this methodology is very advanced, but honestly, it has saved me several times.
**Don't chase highs; wait for a pullback is the first rule.** The moment when the price breaks above the previous high is the most tempting, but the most tempting markets are often traps. My approach is not to rush in; wait until the price retraces to the lower or middle Bollinger Band before taking action. I'd rather watch the market run away than get caught in a trap.
**Never catch falling knives during a downtrend.** This is the second ironclad rule. When a knife is falling, no matter how itchy your hands, you must hold back. Wait at least until the 1-hour chart shows a consolidation pattern and the price stabilizes—that's when you can truly pick up bargains.
**The third detail is to avoid quiet periods.** Around 2:30 PM and after 10:30 PM, the market is often dead or barely moving. In such conditions, price action is most prone to distortion, and a false breakout can easily trigger your stop-loss. Missing these periods is much better than forcing trades during them.
**Volume is the real steering wheel.** Candlestick patterns without volume are fake signals—don't be fooled. Only when volume clearly increases does it indicate real money movement, and only then is the trend worth following.
**The last rule is that stop-loss must be a strict rule.** Before opening a position, you must have a clear trading logic, and the stop-loss level should be set in advance, and it must be tight. Once hit, admit your mistake and exit immediately. Losing money should be done with clarity, so you can learn from it for the next trade.
The key to winning in short-term trading isn't about who makes the most profit, but about who can survive longer. Sticking to these rules may not make your account skyrocket, but it will help you sit at the table more steadily, and that's enough.