#数字资产市场动态 I have to be honest: crypto trading isn't that complicated. Instead of getting tangled in all kinds of fancy indicators, it's better to master a simple and effective methodology. From losing over 800,000 yuan a few years ago to eventually breaking even and doubling my capital, the core lies in understanding market psychology and risk management. Today, I will break down this mindset, starting with three pitfalls to avoid, and then six practical short-term trading tips. Even beginners can gradually build their own profit-making system.

First, let's talk about the three lines you should never cross in trading:

1. Don't chase the rally. It sounds old-fashioned, but many people are still using the same approach from their youth. When others are FOMOing, that's actually the most dangerous time. True opportunities come during panic selling. When market sentiment is extremely pessimistic and everyone is cutting losses, quietly positioning often yields the greatest returns. Think from another angle: what happens to those who buy at the top? This logic is the key to your profit.

2. Don't put your entire wealth into a single coin, especially hotly speculated coins. For volatile assets like $IO, if you choose the wrong direction, full position means you’re out of the game immediately.

3. Always leave room; don’t go all-in. Being fully invested can distort your mindset and distort your operations. There are always opportunities in this market. Those who are fully invested may miss better opportunities because their funds are exhausted. This is called opportunity cost in psychology and is also how economics measures it.

Next, I’ll share six practical principles for short-term trading:

**Principle 1: There will be a new direction after consolidation**
After a coin's price oscillates repeatedly at high levels, it usually breaks to new highs; after oscillating at low levels, it tests new lows. The key is to wait for clear signals of a trend change before acting—avoid frequent trading during consolidation.

**Principle 2: Stay idle during sideways movement**
This is a mistake most losers make. The main reason retail traders lose money is because they can't sit still. During sideways periods, frequent trading eats away at profits through fees and slippage. Sideways is a rest period, not a trading period.

**Principle 3: K-line rhythm is important**
When the daily candle closes bearish, you can try to enter; when it closes bullish, it’s a signal to reduce positions. This isn’t an absolute rule but a useful reference framework.

**Principle 4: Trend acceleration**
If a decline accelerates, rebounds tend to accelerate too; if the decline is slow, rebounds will be sluggish. Recognizing these rhythm changes can help you position in advance.

**Principle 5: Pyramid-style position building**
This is the eternal wisdom of value investing. Buy 10% of your position initially; if it drops 20%, buy another 15%; the lower it goes, the more you add. This reduces costs and provides ammunition during real downturns. Some hot coins like $ZKC also follow this logic.

**Principle 6: Reaction to trend reversal after consolidation**
After a coin’s price continues rising or falling, it enters consolidation. At this point, don’t fully sell at the high or buy fully at the low. Because consolidation is a period of energy accumulation, the next step will be a directional choice. If the trend reverses downward, cut losses promptly; if upward, hold on. The key is to stay flexible.

The common feature of this approach is: simple, reproducible, focused on psychology rather than prediction. What I’ve explored over the years is to simplify complex trading into these principles. Mastering these is much more reliable than constantly watching MACD or RSA.