When I first entered the cryptocurrency market, I was also filled with the desire for 'quick riches,' but several losses almost made me quit completely. It was only later that I realized: those who truly profit in this market rely not on luck, but on solid strategies and ironclad discipline. Understanding these core rules can at least help you avoid losses for half a year.
Core Rule 1: Avoid blindly chasing rising prices and selling on dips, learn to follow the trend.
The pitfall that beginners often fall into is making erratic trades based on market fluctuations—chasing prices during a surge and selling during a drop, resulting in a vicious cycle of 'buying high and selling low.' After mastering the principle of 'following the trend,' my returns gradually stabilized: patiently following the upward trend without easily exiting; holding back during volatile markets and refraining from entering blindly. The trend is always more important than momentary fluctuations.
Core Rule 2: Position management is the survival bottom line; never put all your eggs in one basket.
I once made a fatal mistake: putting all my funds into a single bet, resulting in a severe loss due to unexpected bad news. Now I strictly adhere to the rule of position management: no single investment exceeds 5% of total capital. This way, even if my judgment is wrong, the loss can be kept within a manageable range, always retaining the capital to rebound. Remember: surviving gives you the opportunity to make big money.
Core Rule 3: Stop-loss is the shield that protects your capital, execution must be decisive.
Losses are part of trading, but refusing to set stop-losses is a fatal risk. I insist on setting a stop-loss point for each trade (usually set at 3%-5%); once it is reached, I never hesitate and decisively close the position. It may seem painful to 'cut losses', but it effectively preserves the capital and keeps the spark alive for the next profit opportunity. Stop-loss is not admitting defeat; it is to prevent a single mistake from ruining everything.
Core Rule 4: Continuous learning and persistent review; profit is a natural outcome.
The cryptocurrency market changes rapidly; policies, technologies, and capital flows shift every day. Relying solely on intuition will eventually lead to elimination. I have developed a habit of daily learning: studying candlestick patterns, tracking industry dynamics, and reviewing the gains and losses of each trade. When knowledge and experience accumulate to a certain level, you will find that profit is not the result of deliberate pursuit but the inevitable outcome of natural progression.
The cryptocurrency market has never been a casino; it is an arena that requires continuous growth. Whether you invest 10, 100, or 1000, there are opportunities to steadily accumulate wealth. The key lies in: mastering the correct methods, adhering to strict discipline, and patiently waiting for your own opportunities. The secret to profit lies in every rational decision.
