In the rented room at three in the morning, I didn't even notice the instant noodle soup spilled on the keyboard, staring at the only remaining 1200 capital in the trading platform, I slapped myself three times. Two months ago, when I entered the market with twenty thousand, I fantasized about achieving 'milk tea freedom' through the crypto market, but almost lost my rent in the process.
That day I didn't uninstall the software, but instead printed out the trading records, marking all the mistakes with a red pen, and stayed up until dawn only to realize: all the losses were marked by traces of 'self-destruction.' Now, half a year later, the initial 1200 has somehow rolled into six figures; it's not that I hit the jackpot, but these hard-earned lessons have transformed me from a 'newbie' into a seasoned player who can hold my ground.
Without further ado, these 7 iron rules are worth 100,000 in capital lessons each; new friends remember them, and you can at least avoid 3 years of detours.
1. When the market is 'blindly feeling around', being out of the market is 100 times better than buying recklessly.
The crypto market is never short of 'get rich quick myths'; when you see 'some coin rising 50% in one day' in your friend circle, the consequence of acting faster than your brain is that your capital is cleaner than your face. I once jumped into a market that was flat for half a month, hearing group friends shout 'it's about to break through', and ended up stuck to the point where I could only afford to order takeout.
Later, I understood that every follow-up in a chaotic market is giving the main force a chance to sacrifice people. It's better to set the software to 'do not disturb', focusing on MACD and trading volume, even if you miss ten 'possible rises', don't step into a 'certain loss' pit. Being out of the market is not lying flat; it's conserving energy and waiting for prey.
2. Don't talk about 'feelings' with popular targets; quick in and out is the way to go.
Every time a certain concept becomes popular, there are always newcomers holding onto the fantasy of 'long-term holding'. I once chased a popular target related to the metaverse, and after it rose 20%, I was reluctant to sell, always hoping for 'another doubling'; as a result, it fell back to its original state in three days, and when my unrealized gains turned into losses, I really wanted to throw my phone down the building.
Popular targets are like ice pops in summer, looking tempting but melting fast. Before entering the market, you must nail down your profit and stop-loss lines in your mind—like triggering actions if it rises 15% or falls 8%; once you notice a decline in discussion or a decrease in trading volume, don't hesitate to clear your position directly; don't be the most eye-catching 'buyer' among the 'purchasers'.
3. The trend is here, don't have 'ADHD'; lying flat earns more than reckless trading.
In the second half of last year, there was a big market; I saw someone trade 8 times in one day, selling at the slightest rise and cutting losses at the slightest drop, and in the end, the money made wasn't even enough to pay the transaction fees. Meanwhile, I was holding a mainstream target, with the K-line opening high and trading volume directly doubling, and I firmly believed this was a signal of a confirmed trend, enduring three days of small fluctuations, ultimately achieving a 40% profit.
Remember, when the trend is confirmed, your hands are the biggest enemy. Holding onto your chips is a thousand times more reliable than fidgeting around; don't let the thought of 'making quick money' ruin a big market.
4. A huge bullish candle has appeared; hurry and take profits in batches.
This is a summary of my worst loss—once a certain target suddenly had a huge bullish candle, I got overly excited, thinking 'the bull market has arrived', not only did I not sell but I also increased my position, resulting in a straight dive that afternoon, turning a profit of 10,000 into a loss of 8,000.
Later, after talking with institutional friends, I learned that a huge bullish candle often signals the main force 'calling for someone to take over'; regardless of whether it's at a high or low, when you see this situation, sell half first, then based on subsequent trends, slowly exit the rest. A moment of greed can turn you from a 'winner' into 'chives'.
5. Follow the moving averages, and retail investors can also be 'precise shooters'.
Many newcomers feel that technical indicators are useless and rely solely on their intuition to buy; this is purely 'suicidal trading'. Now, I rely on daily moving averages for short-term trading as 'navigation'—when the 5-day and 10-day moving averages cross upwards, I buy decisively, and when they cross downwards, I sell immediately, turning over every 3-7 days with very few mistakes.
Moving averages are 'safety lines' built with real money by countless people; they are 100 times more reliable than 'insider information' in the group. Using data instead of intuition is the key to surviving in the market.
6. Layout against human nature to outperform 90% of people.
In the crypto market, the ones making money are always a minority, because most people are chasing highs and cutting losses—crazy increasing positions when prices rise and panic selling when prices fall. I used to make this mistake too; seeing others buy, I rushed in and ended up buying at the highest point; when I saw the price drop, I panicked and sold at the lowest point.
Later, I forced myself to 'reverse course': if the upward trend is not broken, hold firmly, even if there are short-term fluctuations; when it drops to a key support level and trading volume stabilizes, then buy in batches. Don't let market emotions lead you astray; although counter-trend trading is painful, it often allows you to pick up 'big bargains'.
7. Build positions in batches, locking the risk 'in a cage'.
The last point, which is also the bottom line for survival—never go all in! I’ve seen too many people with a 'let’s gamble' mentality, throwing all their money into one target, resulting in either going to zero or being trapped in despair. Now, every time I build a position, I do it in 3-5 batches; for example, buy 20% first, then add another 20% if it drops 5%, which helps to average down costs, so even if I get trapped, there's still a chance for recovery.
Before each trade, think about 'how much can I afford to lose at most', set your stop-loss line, and aim for the biggest profit with the smallest risk; this is the path to longevity.
After all this, the crypto market has never been a 'gambling house', but a battlefield for 'cognitive monetization'. Every penny you earn is a realization of your cognition; every penny you lose is a flaw in your cognition.
