In short-term trading in the cryptocurrency market, there is a difference in prediction between professional and amateur traders, but what truly determines victory or defeat is the response strategy.

Professional traders are good at "making the right move despite the wrong read," able to promptly correct erroneous predictions and proceed steadily; whereas amateurs often "make the wrong move despite the right read," and even if they occasionally guess correctly, they find it hard to maintain their gains.

Understanding and trading models are two different matters; the most concerning are those half-understanding traders, who mistakenly believe they understand the market and think there are opportunities everywhere, while in reality, there are crises lurking everywhere.

Last year, a friend came to me with 2700U, wanting to recover his losses. I did not discuss complex indicators like moving averages or MACD, but directly shared three practical insights that I learned from my experiences. He followed them for three months, and his account balance rose to 50000U without once being liquidated. Whether he can grasp these three "survival rules" depends on whether he has respect for the market.

First, divide the capital into three parts, prioritizing capital preservation.

I suggested he split the 2700U into three equal parts, each 900U, and keep them independent. This lesson came from my past experience of being liquidated due to over-leveraging, which led me to reflect late at night: one part for short-term trading, not exceeding two trades a day to avoid greed; one part to wait for trends, maintaining a watchful eye until the weekly chart shows a bullish arrangement and volume breakout; and one part for emergencies, adding to positions when market volatility is high to ensure staying in the market.

Second, go with the trend and know when to pull back.

In my early years, I often lost money in a sideways market, but later I summarized three entry signals: if the daily moving averages are not in a bullish arrangement, decisively stay out; if the market breaks through previous highs with strong volume and closes steadily, enter with a small position; when profits reach 30% of the capital, take half the profit first and set a 10% trailing stop for the remaining part.

Third, manage emotions and execute mechanically.

Before each trade, formulate a detailed plan and strictly adhere to it: set the stop-loss point at 3%, closing the position if hit; when profits reach 10%, adjust the stop-loss to the cost price; turn off the computer promptly at midnight, no longer focusing on candlestick charts. Staring at the market for too long can lead to emotional loss of control and operational mistakes.

Market opportunities are endless, but exhausting capital leads to missing out. First, master these three principles, then it's not too late to study wave theory and other techniques.