Tailored for cryptocurrency traders (Ten Commandments of Trading), it is both a risk control red line and a manual for mental training:
1. Avoid betting everything on one go
Never bet all your wealth, nor borrow money, take loans, or cash out to trade cryptocurrencies. Invest with spare money, going to zero does not mean bankruptcy.
2. Avoid blindly chasing highs
When the price continuously rises and social media FOMO emotions are boiling, hold your hands. Do not buy after a 90-degree surge.
3. Avoid panic selling
Don't panic during sharp declines, do not watch the market during a waterfall. Stop loss without emotions, only use planned stop losses (for example, exit unconditionally at a 15% drawdown).
4. Avoid heavy positions in futures contracts
High leverage is the shortcut for the poor, and also the elevator for the rich to jump off. For leverage above 20 times, position should not exceed 10% of the principal.
5. Avoid following 'gods' blindly.
Any trading teachers, insider info, or KOL signals should be treated as counter-indicators. Trust your own logic and on-chain data.
6. Avoid frequent trading.
Ten trades in a day aren't as good as one trade held for ten days. Fees and slippage will eat into profits, and emotions can be completely hijacked by the market.
7. Avoid trying to catch the bottom or top.
Only eat the meat, not the head or tail. For left-side trading, place orders in batches; for right-side trading, wait for confirmation signals.
8. Avoid impulsive investments in meme coins.
New pools, high APY, anonymous projects—99% are scams. If you're going in, adopt a zero-sum mindset with a very small position.
9. Avoid stubbornly holding against the trend.
When the daily chart shows a bearish setup, the macro environment is negative, and on-chain activity is at a new low, holding cash can be profitable. Don't be a contrarian.
10. Avoid getting overconfident with profits.
Liquidation often starts after a series of big wins. After each doubling, take out your initial capital or move 30% profits to your cold wallet.
Here's an additional mindset:
The crypto space isn't a casino; it's a battlefield for monetizing knowledge.
The ten rules aren't restraints; they're your amulet for longevity and steady gains.
