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Trading short-term, many people always think about getting rich overnight, but the results often go in the opposite direction. In fact, the logic of trading is not complicated; the key is to avoid common traps and to master some practical operational ideas, which can significantly improve the win rate.
**Three core points that must not be touched**
First is the trap of chasing highs. 90% of beginners fall into this, rushing in when the price skyrockets, only to get trapped at high levels. Truly experienced traders wait for a sharp decline to make decisive entries. The turning point between fear and greed is often the opportunity to make money.
Second is the issue of capital allocation. Putting all your funds into one coin is no different from gambling. Keep 30% of cash on hand so you can add to your position during a market dip. This is scientific fund management.
Third is position control. Going all-in is like locking yourself in; there are so many market opportunities, yet you can only watch helplessly. Learning to operate with light positions and flexibility allows you to seize more turning points.
**Six practical operational ideas**
1. Be cautious during trend reversals. Sideways movement at high levels often hides false breakouts; at low levels, bottoming may suddenly plunge. When the direction is unclear, it’s better to observe quietly and not rush to intervene.
2. Sideways periods are risk zones. Data shows that 80% of liquidations happen during sideways trading. At this time, the market is most prone to trap longs or shorts, and those who operate recklessly die the fastest.
3. The appearance of a bearish candle often signals an opportunity. Large downward candles often indicate that the bottom is near. When others panic, it may actually be the time to buy.
4. There is usually a rebound after a sharp decline. The more severe the drop, the stronger the rebound tends to be. Observe in advance and prepare for the rebound.
5. Pyramid-style position addition can reduce costs. Add to your position gradually with each decline at the bottom to lower the average cost and increase profit certainty.
6. When a trend reversal signal appears, adjust accordingly. If a coin surges suddenly and then sideways, quickly withdraw your principal and let the profits run. If a coin drops sharply and then sideways, also cut losses quickly; stop-loss is crucial.
Mastering these points and ideas will significantly improve trading stability. Operations on highly volatile coins like AXS especially require this discipline.