Doing Spot trading is simple to say, but it can truly lead to total loss.

Having been in this market for nearly ten years, I have seen countless cases of failure. The problems often do not lie in the technical aspects, but in human nature—being too anxious, too greedy, and lacking a plan. If you really want to walk steadily on the path of Spot trading, you must avoid the following pitfalls.

# Three life and death lines, touching one destroys once.

**Article 1: Buying the dip is a death wish, only during a drop is there opportunity**

Warren Buffett's saying should be engraved on every trader's screen: "Be greedy when others are fearful, and fearful when others are greedy." Jumping into the market when it's at its hottest? There's a 90% chance of being the one holding the bag. The real moment to take action is when everyone is shouting "it's crashing" or "it's over." If you look at it calmly, that is often the golden window for positioning.

**Article 2: Don't suppress the direction**

The so-called pressure order means putting all chips in one direction. Once the market reverses, you don't even have room to adjust. Maintaining flexibility is the only way to have a chance to turn things around. There are too many times when the market doesn't follow the script.

**Article 3: Always Keep Bullets**

The speed at which the cryptocurrency market changes is comparable to Sichuan opera. Being fully invested is like tying yourself to a ship—there's no way to average down your costs or seize new opportunities. Having spare funds keeps you calm.

# Six Hard Truths of Short-term Trading

These are what I have summarized after countless trials and errors.

**1. Don't make random moves during a consolidation period**

Before the direction becomes clear, taking action is like throwing away money. The consolidation phase tests patience the most; it’s not too late to get in once the trend emerges. Jumping the gun will only make you a target for the big players to harvest.

**2. Sideways is a trap**

The market may seem calm during consolidation, but it is actually the easiest time for repeated wash trades. The best strategy at this moment is to wait. Once the trend breaks, opportunities will naturally arise.

**3. The daily line is the truth**

Don't be misled by the hourly and 15-minute charts. The fluctuations in those short timeframes can easily interfere with your judgment. Look at the daily chart—when the close is bearish, pay attention to buy points, and when the close is bullish, look for sell points. The larger timeframes are more reliable.

**4. The speed of decline determines the strength of the rebound**

When the decline is slow, the rebound is often weak; when the decline is sharp, the rebound may come quickly. Catching the rhythm of "sharp drop and sharp rise" is the easiest time for short-term traders to profit.

**5. Pyramid-style Positioning**

Never go all in at once. Enter the market in batches, adding a little when the price drops. This can effectively lower your costs. The lighter your position when the price drops, the better you can withstand volatility.

**6. There must be a change after sideways movement**

After the wild fluctuations, the market will definitely enter a consolidation period. After the consolidation, it will either break upwards or downwards. Once a downward signal appears, clear your positions immediately and leave, don't hesitate.

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These experiences were bought with real money. The market will not sympathize with anyone, but the rules are dead, and people are alive. Engraving these principles in your mind can at least help you live a little longer.