After much trial and error, I have summarized 6 iron rules. The content is not much, but the value is significant. If you find it unreasonable after reading, feel free to say whatever you want!

1. Each time you enter the market to buy or sell, the loss should not exceed one-tenth of your capital. This way, even if you are wrong every time, you still have 10 chances to play. For example, some friends trade contracts; it's best to use only 1/10 leverage at a time. As long as there is one chance to multiply by 10, you can break even. Of course, I still hope that newcomers do not trade contracts.

2. Always set stop-loss points to reduce potential losses from trading mistakes. Stop-loss is very important; newcomers may not feel its depth. Stop-loss can prevent unnecessary huge losses caused by unexpected events like black swans, such as the USDT crash, which is completely unpredictable. At that time, almost everyone who shorted got wiped out. Moreover, the cryptocurrency market operates 24 hours a day. Without taking profits or stopping losses, it is very risky to trade blindly in the market, leading to sleepless nights. Setting a stop-loss and knowing the maximum loss can provide much safety.

3. Never overtrade. The trading frequency should be low, ideally reduced to 1-2 times a week. Newcomers who want to train can practice with simulated funds or use very small amounts to accumulate experience. However, for normal accounts, you must wait for the right opportunity. Trading opportunities are actually very rare.

4. Never let a profitable position turn into a loss. It is particularly regrettable when many people have profitable trades that turn into losses. How to handle profitable trades so that they do not turn into losses? It’s simple: when there’s a certain profit percentage, you must set a breakeven stop-loss. For example, if you buy at 10 and it rises to 13, you can set the stop-loss at 10 or 11. This way, even if the market reverses, you can protect your principal from losses.

5. Never go against the market trend. When the market trend is not clear, it is better to watch from the sidelines. Going with the trend means trading in the direction of the market. The definition of this trend varies for everyone, depending on their trading cycle and reference indicators. Some may use the 20-day moving average on the daily chart, while others may use the 60 moving average on the hourly chart. It varies from person to person. Only enter the market when the direction is clear; mistakes will be significantly reduced.

6. If you have doubts, close your position and exit. Be decisive when entering the market; do not enter when you are indecisive. This is something you must understand yourself. Whether you can hold a position is crucially based on confidence and trading psychology. If holding the position keeps you awake at night, it’s better not to trade.