Five Practical Iron Rules that Traders are Watching

(Survival Rules in the Cryptocurrency World: A Systematic Methodology to Reject Gambler's Thinking in the Era of Monetization of Cognition)

1. Key to Breakthrough with Small Capital: Holding Cash is the Survival Rule of Top Traders

Many people mistakenly believe that in a bull market, one must be fully invested; in reality, this is a fatal trap. Taking a principal of 50,000 as an example, if one accurately captures two instances of a 30% increase (combined with position management), one can double their assets. The truth of the market: the worst in a bull market is not missing out, but being fully invested and trapped halfway up the mountain — investors who chased high during a certain mainstream cryptocurrency's explosive rise in 2024 are still stuck at historical highs.

2. The First Barrier for Newbies: Build a Moat First, Then Learn to Attack the City

It is strongly recommended to practice trading logic with a demo account for 3 months; do not let real trading become an experimental ground for paying tuition. A bloody warning: whenever you say, "this market is different," it is often a precursor to bankruptcy. The market never lacks fresh stories, but human greed and fear have never changed.

3. Identifying the Good News Trap: When Good News Becomes a Selling Signal

Classic manipulation method by operators: using good news to drive prices up for selling. A typical example: in 2023, DOGE surged 40% in one day due to good news, and the next day plummeted 60%, with those chasing the high evaporating nearly half of their principal in a single day. Remember the iron rule: the high opening period after a major good news announcement is often the best point to take profits.

4. Holiday Cycle Trading Method: Using Historical Data to Avoid Pullback Risks

A review of nearly 5 years of market data reveals: one week before the Spring Festival and Christmas, the probability of market decline is as high as 78%. Practical strategy: reduce positions to below 5% three trading days in advance, and wait for market sentiment to stabilize after the holidays to gradually buy back — investors who reduced positions before Christmas in 2023 successfully avoided a subsequent 12% pullback.

5. Medium to Long-term Position Management: Always Ensure the Bullet Has Next Shot

Building positions in three phases: first build a position of 30%, and add 20% for every 5% price drop.

Negative Case Study: In the 2022 LUNA crash, investors who heavily invested ended up losing everything. The essence of position control is not about making money, but ensuring that when a black swan occurs, you still have the right to stay at the table.