Ten years of cryptocurrency trading, after losing 70% in the first three years, I realized these 10 survival rules to help you avoid five years of detours:

1. Trade Against Human Nature

The common problem for retail investors: holding onto losses while selling profits immediately. You must operate in the opposite direction: take profits after a gain of over 15% if it drops 10%; cut losses immediately if it exceeds 5%. Strictly execute "make 10% lose 5%"; with a win rate of 50% over 100 trades, you can still earn 800%.

2. Volume Determines Victory

A shrinking volume at new highs (volume < 50%) is a signal of institutional control, with a high probability of rising; if the volume during a surge is less than 1x the normal level, there’s a high probability it will continue to rise the next day; cryptocurrencies that pull back with reduced volume after breaking through the 20-day moving average are golden buying opportunities.

3. Simplify Holdings to 2-3 Coins

A common mistake for retail investors: having a small capital but holding multiple cryptocurrencies, averaging down on weak positions. If you hold more than 5 coins and most are losing, immediately reduce to 2-3 coins, prioritizing the sale of those that drop below the 20-day moving average.

4. Daily Fluctuation Patterns

In 24-hour trading, there’s no need to panic during a significant drop; rebounds often follow; if there's a sudden spike at the close, reduce your holdings as there’s a high probability of a pullback the next day. Mnemonic: "Shrinking volume rises further, shrinking volume falls further; increased volume stagnates at the top, shrinking volume stops falling at the bottom; a massive surge will definitely pull back."

5. Trend is King

For short-term, follow the 5-day moving average and act on volume breakouts; for medium to long-term, observe the 20-day moving average, enter on breakouts, exit on breakdowns. Once a trend is established, there’s no need to predict; just follow the flow of funds.

6. Counter-Package Strategy

After a strong cryptocurrency has consecutive surges and then a breakout (first bearish candle), if it meets: sufficient popularity, a fierce first bearish candle, ample turnover, opening flat/high the next day, and adjusting for no more than 2 days, the probability of a counter-package is extremely high.

7. Empty Position After Big Profits

After consecutive profits, it's easy to become blindly confident; it’s necessary to force a break. Don’t try to seize every opportunity, or you may end up with nothing.

8. Cultivate Patience in Adversity

When trading isn't going well, it’s even more important to stay calm; the market will eventually reward patience. Making profits is easy during profitable times, while losses accumulate easily during losing streaks; the key is in daring to act and being even bolder in taking profits.

9. Remember Your Original Intention

Trading cryptocurrencies is about breaking free from the ordinary; suffering is a step, and only by enduring can you reach freedom.

10. Monetize Your Understanding

Trading cryptocurrencies is simple to the extreme but also difficult to the extreme—difficult in continuous learning and the unity of knowledge and action. Successful individuals are always the minority, and their profits are built on the failures of the majority.

The cryptocurrency circle is not lacking in opportunities, but rather in execution power.

At the end of the text are notes made by students. Follow me at @加密大师兄888 for mentorship.