Trading Insights: From Losing 20,000 to Earning 5,000 Monthly, I Realized 3 Crypto Trading Rules (A Must-Read for Beginners)
After one year in the market, starting with a loss of 20,000 in principal due to following trends, I now earn a stable 5,000 monthly. After stepping into countless pitfalls, I have summarized 3 core rules that can help new friends avoid 90% of the detours. I recommend saving this for repeated reading～
Rule 1: Stop-loss is always more important than taking profit
When I first started trading, I always thought “if it drops, it will come back up,” and not setting stop-losses led to deeper losses. I later developed the habit of setting stop-losses for every trade: short-term stop-loss of 5%-8%, long-term stop-loss of 15%-20%. For example, if a coin I bought drops by 5%, I immediately sell to stop-loss, avoiding complete loss of principal. One time left the deepest impression on me: after buying SOL, it dropped 7% without a stop-loss, and I ended up losing 30% before cutting my losses. Since then, I never dared to hold on to false hopes again!
Rule 2: Do not heavily invest in a single coin, diversify your investments
I used to heavily invest in a certain altcoin, thinking of “doubling my wealth,” but the project team ran away, resulting in a direct loss of 15,000. Now my allocation is: 60% BTC/ETH (mainstream coins, stable), 30% quality altcoins (like SOL/ADA, with practical applications), and 10% spot financial products (Binance finance, earning interest). Even if one coin drops, it won’t affect my overall returns.
Rule 3: Do not follow the trend or chase highs; only trade what you understand
Every day in the crypto world, there are news about “hundredfold coins” and “surging coins.” At first, I couldn’t help but chase highs, resulting in losses each time. Now, I only focus on the coins I have researched, combining technical analysis (MACD/RSI) and fundamental analysis (project progress, positive news) to judge. For example, I will only build a position if BTC retraces to a key support level and has increased trading volume, greatly improving my win rate.
Now I spend 1 hour daily watching the market, selecting 1-2 trading opportunities, using small positions for trial and error, earning about 5,000 monthly. Although it’s not much, it’s much more reliable than blindly following trends before.
What is the most disastrous pit you have stepped into while trading? Share your experiences in the comments, and I will help you analyze the issues～ After interacting, if you trade within 180 minutes, I can give you a 5% rebate, and you can learn practical skills. Let’s make stable profits together in the Crypto circle!