🪙 The 10 Rules for Crypto Trading Success

I. Risk Management (Rules 1-4)

Only Invest What You Can Afford to Lose (The Golden Rule): Given crypto’s volatility, treat all trading capital as potentially disposable. Never use funds designated for rent, bills, or emergencies.

Strictly Limit Risk Per Trade

Mandatory Stop-Loss Orders: Always place a stop-loss order at the time of entry. This is your insurance policy. Define a level where your trade idea is invalidated and exit automatically to protect capital.

Manage Position Size Based on Volatility: In highly volatile crypto markets, reduce your position size (e.g., risk 0.5% instead of 1%) to allow for wider price swings without hitting your stop-loss too soon.

II. Strategy & Analysis (Rules 5-7)

Diversify Beyond Major Coins (But Stick to Quality): While Bitcoin and Ethereum are foundational, spread risk across a few fundamentally strong altcoins (projects with clear utility and a good team). Avoid over-investing in low-cap, unproven "meme" coins.

Use Dollar-Cost Averaging (DCA): For long-term core positions, consistently invest a fixed amount of money at regular intervals. This removes emotion and reduces the risk of buying a market top.

Combine Technical and Fundamental Analysis (DYOR): Don't just trade based on a chart (TA). Understand the project's utility, team, roadmap, and tokenomics (FA). Do Your Own Research (DYOR) before every investment.

III. Psychology & Discipline (Rules 8-10)

Avoid FOMO and FUD (Fear of Missing Out / Fear, Uncertainty, Doubt): Do not chase massive green candles (FOMO) or panic-sell during sharp drops (FUD). Stick to the entry and exit levels defined in your plan.

Master Profit Taking: The market won't always give you a perfect exit. Take profits partially (e.g., sell 50% at your first target) to lock in gains, and then move the stop-loss on the remaining position to break-even.

Keep a Detailed Trading Journal: Record every trade—the entry, exit, reasoning, emotions, and lessons learned. This is the single best way to improve by identifying and correcting your behavioral mistakes.