Recently, I’ve been整理 some insights on investing in the crypto space and found that many beginners lose money for similar reasons. Instead of blindly trading, it’s better to first understand the logic behind short-term trading strategies.

Honestly, short-term trading strategies in crypto may seem simple, but in reality, they test your mindset and discipline. I’ve noticed that those who do well are often not because of exceptional technical skills, but because of their respect for risk. For example, lending investments, frequent chasing of highs and selling lows—these may seem to double your money quickly on the surface, but in fact, you’re battling your own psychology. Once your capital has a cost, you become emotionally driven. Watching the market decline can amplify your fear tenfold.

Regarding candlestick chart analysis, my experience is to view it in layers. First, look at the monthly and weekly charts to determine the overall trend. If there’s a clear downtrend, don’t rush to buy. If the weekly chart is sideways, pay attention—especially when the lows are gradually rising—this could be a sign that the entry point is near. Then, examine the daily chart to find specific buy points. Avoid buying in a strong downtrend; wait until the lows are consistently rising and buy during consolidation at low points. For shorter cycles like 4-hour and 1-hour charts, a pullback to EMA10 or EMA20 can be a good opportunity.

For short-term trading timeframes, I personally use 5-minute, 15-minute, and 30-minute K-lines. The 5-minute chart is suitable for quick decisions and capturing short-term trend changes; 15-minute charts provide a broader perspective, helping identify medium-term trends and support/resistance levels; 30-minute charts filter out short-term noise and clarify the true trend. The choice mainly depends on your trading style and risk tolerance.

As for capital management, I think it’s the easiest to overlook. Many people have a perfect short-term strategy but ruin it with poor capital allocation. First, you need risk control awareness—you should never go all-in; leave yourself some room. Crypto opportunities are plentiful, but what’s lacking is the ability to survive. Then, allocate your funds reasonably between long-term and medium/short-term positions based on your situation, and strictly follow that plan without changing strategies midway.

I personally use a layered deployment approach. After judging the trend based on market movements, I set up positions at different stages when buy signals appear, totaling five layers. When selling, I first aim to recover the principal to break even, turning it into zero-cost. The remaining profits are allowed to grow freely, making it easier to sell at high points. After recovering the principal, I rotate into other assets through sector rotation to maximize capital efficiency.

Ultimately, the complexity isn’t in the market but in human psychology. No matter how perfect your short-term strategy is, if your mindset isn’t stable, it’s all for nothing. I’ve seen too many people fail due to greed or fear. The main reasons for losing money in crypto are: blindly choosing projects, reacting to news impulsively, stubbornly dollar-cost averaging into a single coin, trading derivatives, frequent trading, chasing highs and selling lows, not understanding cashing out, gambling-style leverage, lending investments, chaotic capital management.

To become among the few who make money, you must first face reality. Financial markets follow the 80/20 rule—80% of people losing money is the foundation for the market’s continued operation. So, what you need to do is change your mindset, build your own knowledge system instead of following the crowd. Learn blockchain fundamentals, understand project essence, cultivate independent thinking—these are the keys to long-term survival. Short-term trading strategies are just tools; true wealth comes from continuous learning and mental discipline.