A cryptocurrency trading genius has realized the iron rule of short-term trading.

The top ten rules for short-term cryptocurrency trading include strict stop-loss, light position diversification, following the trend, planning trades, decisive profit-taking, paying attention to Bitcoin and market sentiment, controlling trading frequency, focusing on technical analysis, being wary of external risks, and maintaining a good mindset.

1. Strict stop-loss, refuse to hold onto losing positions.
Each transaction must preset a stop-loss level (it is recommended that a single loss does not exceed 1-2% of the total capital) and exit unconditionally once triggered. Avoid expanding losses due to "waiting to break even" or "fantasizing about a rebound", especially in the highly volatile cryptocurrency market, as holding onto a position can lead to significant losses.

2. Light position operation, diversify risks
Position in a single cryptocurrency should not exceed 10-20% of total funds to avoid full position betting. Keep at least 30% cash on hand to respond to sudden risks, such as adding to positions or switching during a crash. Beginners are advised to divide their funds into 5 parts, using only 1/5 for each entry; even with 5 consecutive mistakes, the principal loss would only be 10%, making it easier to maintain a stable mindset.

3. Go with the flow and follow market trends
Only go long during an uptrend, do not bottom fish in a downtrend, and reduce operations in a sideways market. Focus on strong coins with both price and volume rising (such as mainstream coins led by Bitcoin), and avoid obscure weak coins. Note that "the strong stay strong"; pullbacks during an uptrend present opportunities, while do not blindly bottom fish during a downtrend.

4. Plan your trades and avoid impulsive actions during the session.
The night before, review and select the target, clarify the buying conditions, target price, and stop-loss level, and do not chase prices during the trading session. Shield against short-term fluctuations or rumors, and avoid changing strategies due to emotions or immediate market conditions.

5. Take profits decisively, without greed or fear.
Take partial profits after reaching expected gains (e.g., 10%-15%). If the price weakens after profit, sell even if the target has not been reached. Avoid "profit drawdown"; for example, if profits drop from 15% to 10%, take partial profits first and observe the remainder.

6. Pay attention to Bitcoin and market sentiment
Bitcoin is the barometer of the cryptocurrency market, with most altcoins rising and falling alongside it. Pay attention to the inverse relationship between USDT and Bitcoin (when USDT rises, be wary of a Bitcoin drop), and monitor the fluctuation signals during key trading periods such as 0-1 AM, 6-8 AM, and 5 PM.

7. Control trading frequency and wait for opportunities.
When the market has no clear direction or sentiment is retreating, it is better to stay in cash and observe to avoid ineffective operations. It is recommended to control the daily trading frequency within 1-3 transactions to reduce fee erosion of profits.

8. Technical analysis as the main focus, simplifying indicators
Proficient in using 1-2 core indicators (such as MACD, volume, moving averages), focusing on key signals like support/resistance levels and volume breaks. For example, a golden cross below the MACD 0 line is a buying point, while a death cross above the 0 line is a selling point; low-level volume breaks can be followed, while high-level volume stagnation requires exiting.
9. Be aware of external risks and pay attention to key information
Cryptocurrency prices are significantly affected by policies from various countries (such as cryptocurrency regulation), U.S. financial policies (such as interest rate hikes), and statements from influential figures (such as Elon Musk), so it is essential to keep up with financial news. At the same time, avoid "meme coins" that have surged excessively (99% are traps for unsuspecting investors).

10. Maintain a positive mindset and regularly review and optimize.
Stay calm during big drops and don't get arrogant during big rises. Avoid emotional trading (such as revenge trading after losses). Record transaction details daily, analyze reasons for profits and losses, and gather data on win rates, profit-loss ratios, etc., to eliminate strategies that result in consecutive losses.
It is important to note that the cryptocurrency market is highly risky, and factors such as policies and technology can easily trigger severe fluctuations. The above rules are only for reference to reduce risks, and actual operations should be carefully decided based on one's own risk tolerance.
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