A few years back, I met up with some old friends from the trading scene, and we all agreed on one thing: those who stick around and make a living off trading have become way more reserved. Looking back at my own journey a few years ago, I was overly confident, totally buying into the myth of 100x leverage. On the day LUNA collapsed, I tried to catch the bottom and go long, but ended up facing an epic series of liquidations that wiped out years of savings in just a few hours. That kind of devastating loss from going against the market and over-leveraging left me unable to eat for days. It's only after getting smacked down by the market that you really understand the importance of rules. Here are a few hard-earned trading rules I've summarized—nothing flashy, but they can save your skin:
Control the urge to chase highs: When the coin price is surging, that's often when the risk is highest. Smart traders wait for a pullback and quietly dip in during the consolidation phase.
Position size determines fate: Even if you're 99% sure, don’t risk more than 30% of your position. The market can always throw a curveball with that 1% surprise; always leave yourself an exit strategy.
When emotions run high, shut down the computer: After two consecutive losses, you must force yourself to step away from the screen. At this point, you're in an irrational state, and continuing is likely just throwing away your money.
Waiting is part of trading: A great hunter spends most of their time hiding and waiting. If the market isn't giving you a clear entry signal, just be patient and wait it out.
Unconditionally execute your stop-loss: Don't stubbornly fight the market. When the price breaches your key support level, immediately admit defeat and exit. Holding onto a losing position will only lead to total ruin.
Go with the trend, don’t chase the top or bottom: Once a trend is established, it's tough to reverse in a short time. Don’t guess where the bottom or the top is; trading in the direction of the trend is the safest bet.
Don't blindly trust so-called good news: News is often used by the whales to offload or accumulate. Pay more attention to the liquidity and trading volume on the charts; that's the real deal. In trading, what really matters in the end is your mindset and discipline. Don’t envy others who strike it rich overnight; that kind of luck often comes quickly and goes even faster. Focus on solid position management and stick to your stop-loss limits. Only when trading becomes a habit and muscle memory can you truly achieve long-term stable profits.
