Crypto circle wants steady returns, in simple terms, knowing what not to do and when to take action. Many people lose money not because they choose the wrong coins, but because their trading methods are completely reversed.

Let's first discuss the three most common pitfalls.

Chasing highs and selling lows is the biggest taboo. When prices soar, most people rush in impulsively, ending up holding the bag at high levels. The truly profitable traders are the opposite—they quietly position themselves when the market is most pessimistic and everyone is despairing.

Second, never bet your entire net worth on a single coin. Going all-in on one coin is like a gambler betting everything—if your judgment is wrong, losses can be severe. The smart approach is to keep some ammunition, waiting for a real crash to buy the dip.

The third pitfall is going all-in with full position. Opportunities in crypto are endless, but going all-in reduces your flexibility and makes you miss better opportunities. Keeping some cash on hand and controlling your position size is the key to long-term survival.

Now, let's look at six practical points for short-term trading. Consolidation will inevitably break out in a certain direction. Be cautious of false breakouts during sideways movement at high levels, and watch out for sharp drops during bottoming phases—avoid rushing into action before a trend reversal. While sideways trading seems safe, it’s actually the most dangerous—data shows the highest risk of liquidation during this stage.

Buy on red candles, sell on green candles—this may seem counterintuitive but is often the most effective. The sharper the decline, the stronger the rebound usually is—this reflects market sentiment recovery. Use the pyramid method when building positions: for every 10% drop at the bottom, add 10% more, which helps lower the average cost and control risk. When a trend reversal occurs, if a coin that has surged starts to sideways, first withdraw your principal; for coins that crash, cut your losses decisively—don’t hold onto fantasies.

These tactics seem simple, but few can execute them properly. Mastering the rhythm and controlling greed are essential to truly improving your success rate in crypto trading.