The 5 Iron Rules of Cryptocurrency Trading That Must Be Followed, Written for Every Retail Investor Who Has Suffered Losses
One early morning five years ago, I was awakened by a liquidation alert; my account of 6 million vanished in just three hours. Staring at the negative numbers flashing on the screen, I felt like I was nailed to the cross of reality.
But I did not give up. I borrowed 120,000 and got back on the road, spending 90 days to turn my principal into 20 million using a strategy with a 90% success rate. Those days were painfully hard, but they also led me to summarize 5 rules that must be engraved in your heart.
Iron Rule One:
Cryptocurrency trading is not gambling but warfare; there must be a risk control system. A true trader is not a gambler but a warrior. You need armor and a retreat route.
Leverage is not the original sin; position size is key. Using 100x leverage to only take 1% of the principal, while the rest is used for risk control buffer, actually lowers the risk. Clear stop-loss, trailing take-profit, and controlled operations prevent emotions from spiraling out of control. What destroys you is not the market conditions but a lack of risk control combined with an unwillingness to admit mistakes.
Iron Rule Two:
Emotions are not a strategy; discipline is the way out.
90% of retail investors perish chasing highs and cutting losses. Set your entry and exit points and stop-loss lines before buying.
Increase positions when profitable, decrease when losing, and never average down.
Forget the candlestick patterns that excite you; focus on trading volume and structure instead. The truth of price movements is hidden in trading volume; without volume, there is no price.
Iron Rule Three:
Only trade what you understand; avoid emotional coins.
Don’t fantasize about getting rich quick; mainstream coins and familiar logic are the true foundation. The projects that rise the fastest also fall the quickest.
Market trends rotate too quickly; it’s better to delve deep into familiar sectors. If you understand it, don’t touch it; if it lacks logic, don’t buy it.
Price fluctuations are a magnifying glass of market emotions, not a reflection of value.
Iron Rule Four:
No averaging down, no holding onto losing positions, no attachment to old prices.
Averaging down is not a strategy; it’s a loss of emotional control. Being stuck is not a market issue; it’s your failure to stop loss.
Holding onto losing positions will only wear down your rationality; an empty account is not a distant possibility but an inevitability.
Trading is about process management, not an obsession with recovering losses.
One technique, one system, and one trading sense—master them before discussing expansion.
You can make money in the cryptocurrency market not because you caught a bull run but because you survived more crashes, avoided more impulses, and controlled your hands and heart!
