I have spent years observing the cryptocurrency market and have seen so many people make the same mistakes over and over again. Today I want to share what I’ve learned, especially for those who are starting in short-term trading.

Let's start with a truth that few accept: the market is not a game where everyone wins. It’s a redistribution of wealth. If you win, it’s necessarily because someone else lost. It may seem harsh, but that’s the reality. About 80% of traders lose money, 10% break even, and only 10% actually profit. So how do you become among the few winners?

The first thing I understood is that short-term trading requires incredible mental discipline. Many people think they will do short-term trading and become rich in a few weeks. That’s an illusion. They see a crypto explode, everyone talks about it, and they buy without thinking. Then when it drops 10-20%, instead of sticking to their plan, they panic and keep hoping it will go back up. When it continues to fall and they lose 50%, 60%, or even 70%, they rush to sell at a loss. And the cycle repeats. This is the classic mistake: buy high and sell low.

To truly succeed in short-term trading, you must first understand what you are investing in. I am shocked by the number of traders who cannot properly explain what Bitcoin is or how blockchain works, yet they still put money into it. It’s pure gambling. You need to study seriously. Your knowledge must surpass that of most investors around you.

Next, let’s talk about technical tools. When I do short-term trading, I observe charts across different timeframes. The 5-minute chart allows me to capture rapid market changes, perfect for quick decisions. The 15-minute chart gives a broader perspective and helps identify intermediate trends and support-resistance levels. The 30-minute chart filters out noise and shows the real trends. I also look at trend lines, volume, candlestick patterns. The MACD with its low-level golden cross helps me spot explosive moves. The KDJ, known as the king of short-term trading, is also very useful.

But here’s the thing: technical tools are not enough. I must first observe the larger cycles. I look at monthly and weekly charts. If the trend is clearly bearish, I don’t buy, no matter what the short-term indicators say. If it’s consolidating, I watch. When the bottom starts to rebound, that’s a good sign. For truly effective short-term trading, I need to trade within the context of a long-term upward trend. That’s the key.

Once I’ve confirmed an overall bullish trend, I look for entry points. On the daily chart, if it’s an uptrend, I wait for a correction to buy near the EMA10 or EMA20. This is called buying on the right side, and it’s much safer than buying on the left, hoping it will go back up. The downward correction points are often excellent low-risk entry points for short-term trades.

Now, let’s talk about risk management, because that’s where most fail. You should NEVER borrow money to trade. Never. I’ve seen too many people make contracts with borrowed funds. When the market drops and you see your account shrinking, fear rises. You get stressed, lose sleep, make bad decisions. And when your loan matures, you’re forced to sell at a loss. It’s a disaster.

Invest only with money you can afford to lose. Divide your capital: part for investing, part for protection. Spread your positions reasonably. Establish a clear ratio between your short-term and long-term investments, then strictly follow it. Before starting, develop a buy and sell strategy. I never trade without a plan.

There are several reasons why people lose money. Blind investing without analysis. Entering the market based on rumors. Persisting in a single crypto that isn’t moving forward. Too frequent transactions that eat away your profits with fees. Not knowing how to take profits. Increasing bets like a casino player. Fund management issues.

But the real deep reasons? Overly short-term thinking. Focusing on how much it’s up today instead of what it will do in 6 months. A lack of real understanding. Blindly following what KOLs and influencers say without thinking for yourself. An overly restless mind, always chasing quick gains. Lack of continuous learning. And above all, no solid investment philosophy.

What makes the market complicated isn’t technique; it’s human psychology. Greed and fear. Even with an excellent strategy and technical skills, you can lose if you don’t control your emotions. That’s why before investing, you need to ask yourself some honest questions: Am I truly mentally prepared? Have I studied enough? Do I think for myself or just follow what others say? In the face of big players’ manipulations, can I stay calm?

The crypto sector isn’t big, so if you’re doing short-term trading, focus on the market leaders. Don’t disperse your attention. And remember: there’s no lack of opportunities in crypto, only a lack of skills. Staying alive, preserving your capital—that’s more important than anything.

Those who have achieved financial freedom in crypto? None made their profits in a few days. All depend on time, patience, and a coherent strategy. Prioritize long-term with support from short-term, not the other way around. That’s the true wisdom of short-term trading.