Many newcomers to the trading market share the same problem — they open the chart and can’t stay still for a second, watching the K-line fluctuate up and down and immediately want to place an order. Are they afraid of missing out on the market? But this is precisely how the easiest losses begin.

I’ve also fallen into this trap myself. At that time, I knew nothing, and whenever I saw the price jump, I’d get nervous, thinking that doing nothing meant losing. Only later did I realize that for high-volatility assets like Bitcoin and gold, short-term trading isn’t about acting quickly; it’s about acting correctly.

**The core logic is actually very simple: follow the market rhythm closely, but with restraint.** Short-term trading relies on small timeframes like 1-minute, 5-minute, and 15-minute price movements. But not all fluctuations should be chased. Don’t overuse tools; focus on three things — candlestick patterns, moving averages, and volume. That’s enough.

Once you enter a position, remember the principle of quick in and quick out — set your profit target between $3 and $8, and strictly limit your stop loss to $1 to $3. This isn’t being stingy; it’s about survival. If a single loss exceeds $2, you must stop loss immediately. Don’t think you can “tough it out” — that turns short-term trading into medium-term, and the risks are completely different.

**Timeframe selection is also very important.** The London open is the period with the biggest volatility for major currencies and cryptocurrencies, and it’s the golden time for short-term trading. Conversely, avoid trading in the first 5 minutes after major data releases — non-farm payrolls, CPI, and similar events — because spreads will widen wildly, and slippage can easily eat into your profits.

Another often overlooked point: even when doing short-term trading, glance at the 1-hour chart for the overall trend. For example, if the 1-hour EMA is trending upward, only go long — don’t trade against the trend. Short-term doesn’t mean reckless; if the overall trend is wrong, no matter how fast your reactions are, you can’t save yourself.

Finally, don’t overtrade. Keep your daily trading to no more than 5 trades, and most of the time, stay on the sidelines. It sounds boring, but this is the rhythm of making money.

Data speaks: the success rate for short-term trading is usually between 55% and 65%, which is barely above half. But the key is the risk-reward ratio — if you can make $5 while risking $3, over the long run, you’ll have a stable positive return. This ratio should be above 1.5:1 to be meaningful.

It’s recommended that beginners first test their strategies on a demo account, and only switch to real trading once they see consistent results. Short-term trading in gold and cryptocurrencies is like dancing on the edge of a knife — discipline is your only armor.