I have been struggling in the cryptocurrency world for 8 years, from initially having nothing to now being able to support my family through trading. Every step has been a lesson learned with real money. Today, I am sharing 12 rules of cryptocurrency trading that I have summarized, each one is the essence refined through practical experience. I suggest you keep them, as they might help you avoid years of detours.
First rule: The principal is the survival bottom line. The cryptocurrency market is volatile, and without your principal, you lose the chance to turn things around. Holding onto your principal is key to staying in the market for the long term. Second rule: Greed is the root of losses; securing profits is more practical than trying to make more. In my early years, I chased high prices thinking I could 'make a big profit all at once,' but ended up getting stuck. I later realized that maintaining a calm mindset and earning a little each time accumulates faster.
Rule Three: Focus your energy without scattering it; don't fully invest, go with the trend. Don't buy a bunch of coins just to 'hedge,' as you can't manage them and it's easy to step on landmines; and don't go all-in betting on the market, leave some room to handle sudden volatility. Rule Four: Don't over-invest, don't stubbornly hold on, and trade less. I've seen too many people stubbornly holding on to losses after over-investing, resulting in greater losses; moderate trading and controlling position size is the key to stability.
Rule Five: Enter steadily, exit quickly, and cut losses ruthlessly. Don't impulsively chase after rises; wait until you're sure before entering; don't hesitate to sell when it's time, lest you give back profits; set a stop-loss line and stick to it strictly, without harboring any luck.
Rule Seven: Trigger stop-loss and leave immediately; don't delay. Stop-loss is the last line of defense to protect your account; hesitation will only amplify losses. Rule Eight: Regardless of long or short positions, securing profits is the truth. No matter how good the paper profit looks, if you haven't realized it, it's all illusory; cashing out in a timely manner is what counts.
Rule Nine: Extremes will reverse; that's an iron rule of the market. No matter how crazy the rise, a correction will come; no matter how severe the drop, a rebound will occur; don't let extreme market conditions cloud your judgment. Rule Ten: Waiting for opportunities is better than blind trading. In the early years, I always thought about 'capturing every wave of the market,' but frequent trading resulted in significant losses. Later, I discovered that patiently waiting for the right opportunities can yield steadier profits.
Rule Eleven: Stop-loss is your own responsibility, while profit is a gift from the market. You must strictly enforce your stop-loss; as for how much you can earn, it depends on whether the market provides the opportunity—don't force it. Rule Twelve: Wealth comes from waiting, not from frequent messing around. The truly profitable trades often come from waiting, rather than constantly buying and selling while staring at the screen.
These iron rules seem simple, but I paid a considerable price back then to achieve unity of knowledge and action. In the cryptocurrency world, desire can easily spiral out of control; only by adhering to the rules and strictly executing them can you go far. Those who can do it are the true winners.
How to plan funds, how to seize opportunities, how to control the rhythm, I can slowly explain it to you, saving you years of detours; sometimes, it just takes these few straightforward words @财神爷说币 .