In the cryptocurrency market, some people become rich overnight, while others lose everything in just a few hours. The deciding factor is not luck, but whether one understands the survival rules or not.
Below are the core principles that any trader can apply to reduce risk and maintain long-term survival opportunities.
1. Divide capital into three parts to prioritize survival
Trading capital should not be used all at once. A safe management approach is to divide the amount into three equal parts:
Part 1: Used for short-term trading. A maximum of only two orders can be opened each day, then close the software to avoid being caught up in greed.
Part 2: For trend trading. Only enter orders when the weekly chart shows a clear upward pattern or when the price breaks through a significant resistance area with high volume. If the market is sideways, absolutely be patient and wait, do not act recklessly.
Part 3: Contingency funds. This is "lifesaving money" to average down when the market is highly volatile, helping to protect the original capital and maintain recovery opportunities.
2. Only trade according to trends, avoid being caught up in short-term fluctuations.
During periods of chaotic market volatility, reckless trading is almost the fastest way to lose money. The important rule is to only participate when clear trend signals appear:
The daily moving average must show an arrangement in the upward direction before considering opening a position.
When the price breaks the old peak with high volume and the daily candle closes steadily, one can participate with a small position.
When profits reach about 30% compared to the original capital, withdraw half of the profits immediately, and set a trailing stop of 10% on the remaining part to protect the gains.
3. Respect the market and trading discipline.
The cryptocurrency market is always harsh. Only those who maintain discipline, know how to manage capital, and limit greed can survive in the long run. Each of the above rules aims solely at: preserving capital – surviving – waiting for opportunities.
👉 These rules do not promise miraculous profits, but they certainly help reduce risks, avoid common mistakes, and most importantly, preserve the opportunity to go the long way in this volatile market.
