Recently, I’ve had a few losses in short-term trading, and to be honest, it stings quite a bit. But losses aren’t completely unavoidable. Over this period, I reviewed my trades and summarized some practical risk control tips to share with everyone:

**First, never chase the rallies or panic sell during dips.**
The market is always moving, and if you chase highs, you’ll likely get stuck at the top. How do you know if it’s a high point? Simply put, if a trend has already moved more than halfway, don’t jump in. For example, if an asset’s fluctuation range is 100 points and it’s already up more than 50 points, the odds become 50/50, which is risky—there could be a pullback at any time. If you want to anticipate an uptrend, refer to the Bollinger Bands: don’t enter near the upper band, wait for a pullback to the middle band, lower band, or around the 10-day moving average before considering entry.

**Second, don’t try to catch falling knives.**
Wait for the market to stabilize before making a move. What does stabilization look like? Rounded bottoms or irregular double bottoms are good signals—you need to observe and summarize these patterns yourself. Quick V-shaped reversals are rare, so don’t rush in. But keep in mind, if these patterns appear in the middle of the previous high and low on the 1-hour chart, it’s likely just consolidation, not a reversal signal.

**Third, avoid low-volume periods.**
After 2:30 PM and after 10:30 PM, it’s best not to open new positions. Most of the day’s main moves are done, and trading volume shrinks. It’s hard to catch a solid trend or clear direction during these times.

**Fourth, keep a close eye on trading volume.**
Always check the 5-minute trading volume before entering. Think about it: can retail investors create a big bullish volume spike without any special news? That’s usually a sign of big players moving. The classic signal is a moving average breakout accompanied by a stepwise increase in volume. Don’t trust candlestick moves without volume support.

**Fifth, strictly control single-trade losses.**
If you’re uncertain about the market, don’t open positions lightly. Don’t treat stop-losses as a reason to gamble. Have a clear entry logic, set a tight stop-loss after entering, and if you get stopped out but your logic remains valid, just wait for the next suitable opportunity.