Looking back now, those losses weren't tuition fees, they were alarm bells ringing in my head! Fortunately, I wasn't run over, I struggled and learned 6 'survival rules', sharing them from the bottom of my heart today to help you avoid five years of detours and keep five more strands of hair.
The first iron rule: lock in profits, extract losses.
The most deceptive aspect of the crypto market is the 'retail investor nature': holding on through losses waiting to break even, running away when in profit for fear of missing out. The truth I verified with blood and tears is: daring to take risks and cut losses is the way to survive!
The rigid rules I set for myself: lock in half of the profits at 10%, and let the rest follow the trend; exit directly when losses hit 5% — don't hesitate, this isn't cutting losses, it's severing the toxic vines of loss. This seemingly simple operation, I executed for 4 years, avoiding countless tragedies of 'from profit to zero position'. Remember: the 'ruthlessness' in trading isn't about going all in, it's about being tough on your own greed and luck.
The second rule: trading volume speaks louder than K-lines.
Many focus on K-line charts but forget that trading volume is the market's 'emotional detector'. My practical judgment criteria:
Breaking through previous highs under a low volume state greatly increases the probability of subsequent rises (this is the market quietly gathering strength);
After stabilizing at key moving averages and pulling back on low volume, this isn't a trap; it's a signal for money-level entry — I accurately bottomed three times last year, all thanks to this move. Don't just look at K-lines 'drawing a pie'; trading volume doesn't lie; it's telling you whether the market is genuinely rising or just 'acting'.
The third bottom line: position size is your 'get out of jail free card'.
During fluctuations, I've seen too many people 'scatter pepper': holding seven or eight varieties, thinking 'if it doesn't shine in the east, it will in the west', only to see everything turn red; even worse, some gamble heavily, getting wiped out in a single fluctuation.
My position logic: during fluctuations, hold tight to top crypto assets, with a maximum of 2-3 positions. Greed leads to chaos; diversification is not risk avoidance but spreading risk into a 'total collapse'. Full position? Unless you’re prepared to 'start over' — after all, I've taken a loss once and never dared to put all my eggs in one basket again, and I don’t even cover it.
The fourth rule: the 'pitfall guide' for intraday trading.
Don't fumble around with short-term operations; I've verified these two rules thousands of times:
Don't panic and rush into decisions during a sudden drop; the market won't keep falling forever, and rebounds often come just after you cut your losses.
Sudden surges at the close? Don't get too excited and chase in; it's likely a 'trap for the greedy', and a pullback awaits you the next day. Two key signals: a volume increase during a rise will continue, so don't exit easily; excessive volume stagnation means a peak is imminent, so quickly reduce your position and escape — this isn't mysticism; it's the inevitable result of capital games.
The fifth rule: don't go against the trend.
I've seen too many 'smart cookies' guessing tops and bottoms every day, resulting in either missing out or getting trapped. My core viewpoint: trends are your true parent; following the trend is 100 times more reliable than blindly pondering.
The rhythm of the market is far more logical than you think: don't easily sell when it should rise, and don't stubbornly hold when it should fall. The essence of trading is not to 'predict the market' but to 'follow the market' — learn to admit defeat to survive longer.
The sixth lifeline: if your mindset collapses, stop immediately.
This is the one I value the most, without exception:
After a big gain, you must rest and go to cash! When making money, it's easy to feel euphoric, thinking you are 'the chosen one'. The next step is likely to be a big position that leads to losses — I once made 50% and got cocky, only to give it all back in a week, ending up at a loss; a bloody lesson.
Don't operate recklessly when facing continuous losses! The more you lose, the more you want to 'make it back', and the more you operate, the more you lose, falling into a death spiral. The best thing to do at this point is to close the software, go shopping, enjoy a nice meal, and wait for the profit effect to return before taking action.
Ultimately, trading in crypto assets is not about luck, intelligence, but about self-control — controlling your greed, controlling your luck, controlling your impulse to 'take a gamble'.
The market is never short of opportunities; what it lacks are those who can stand up after being cut bald. If you find this useful, please like, bookmark, and share. Next time, I'll expose those 'seemingly profitable' traps, along with the practical details of how I went from losing 70% to stable profits. Follow me, don't wait until you've been cut before looking for a group, because in this market, surviving is the only way to wait for the day you can make money. See you next time, wishing you fewer pitfalls and more profits, and may your hair keep growing!
