Why do I always lose when doing short-term trading? Many blame the market judgment, but the real issues often lie in those easily overlooked details.

Based on my own experience and that of many traders, I’ve summarized the most common pitfalls in short-term trading:

**Pitfall 1: Don’t chase the price rally**

You see the price surge and think you need to jump in quickly. Wrong. When the price reaches a high, it’s often the emotional peak, not a good entry point. Rushing in at this moment usually results in catching the bag. Where is the real opportunity? Wait for the price to pull back to key moving averages or support levels and stabilize. Only then is it worth paying attention. Waiting a bit longer can help you avoid many pitfalls.

**Pitfall 2: Never reach out to catch falling knives**

"Bottom fishing" sounds tempting, but in a downtrend, any rebound could be a trap. True bottom reversals will show clear pattern signals—double bottoms, head and shoulders bottoms, or prolonged sideways accumulation. Until these patterns appear, it’s better to pass on the opportunity rather than gamble.

**Pitfall 3: Market without volume is fake**

Volume is the lifeblood of the market. When volume is insufficient, price movements are unpredictable and lack sustainability. Short-term trading must pay close attention to volume. A rise on low volume is basically a trap for bulls; a decline on low volume means no one is supporting it. Only when the price breaks through or stabilizes at key levels (like dense moving averages) with increased volume is it a genuine signal worth noting.

**Pitfalls 4 and 5: Position size and stop-loss are life lines**

Trade only when you are confident; otherwise, stay on the sidelines. Overleveraging a single position turns trading into gambling. Stop-loss is your safety rope—set it in advance. When it’s hit, exit immediately—don’t leave room for wishful thinking.

The essence of short-term trading isn’t about making huge profits every time, but about using strict risk control to ensure you can survive in this market. Losing less money is itself a form of victory. As long as your principal remains, opportunities will always be there.