In 2018, I invested 1 million in the cryptocurrency market, and at that time, I felt like I was floating while walking — I always thought I was the chosen one, and soon I would achieve financial freedom and upgrade my house and car, reaching the pinnacle of life.

And the result? Three years later, my account balance was only over 200,000, with one less digit before the decimal point, and my heart was completely cold. My wife was so angry that she uninstalled my trading software three times and finally said harshly, 'If you dare to mess around again, we will sleep in separate rooms!'

During that time, I lived like a thief. After work, I would hide at the entrance to check the market trends, afraid that my family would see my account; at night, I would stare at the K-line chart, wishing I could slap myself twice. The hard-earned savings I had accumulated were nearly all squandered by me, and I didn't even dare to attend family gatherings for fear of being asked about my income.

But that rebellious spirit in me surfaced at this point. Why can others make money in this market while I can only be a 'leek'?

I simply turned off my phone, locked myself in my study, and went through all 127 trading records from the past three years, scrutinizing the details. My mistake notebook filled two whole books, with reckless all-in trades, stubborn holding against the trend, and chasing highs marked in red as glaring warnings; every time I looked at them, it felt like slapping my own face.

In the fourth year, I re-entered the market with just over 200,000 left. This time, I dared not be arrogant, moving like a child just learning to walk, carefully and cautiously. To my surprise, the more cautious I was, the steadier I became.

Now, my account balance has long surpassed 34 million. Looking back on the painful journey of these 7 years, filled with pitfalls and lessons. Today, I share 6 ironclad rules that I've carefully summarized; after reading, beginner friends can at least avoid 80% of the pitfalls!

1. Position management: divide money into 5 parts; run away immediately at a 10% loss.

This is the painful lesson I bought with a loss of 800,000! In my early years, I believed in 'going all in to make big money,' but after one crash, I lost half of my holdings, and my account was instantly halved.

Now I split my total capital into 5 equal parts, using only one part to enter each time. If a single trade loses 10%, I exit without hesitation. Even if I'm unlucky and lose 5 times in a row, my total loss will only be 10%, leaving me with capital to recover—far better than being trapped with all my funds and crying over my losses!

2. Go with the trend: don't wrestle with the trend; you won't win.

The dumbest thing in the crypto market is thinking 'it has already hit bottom' during a downturn and blindly buying; during an uptrend, fearing 'missing out' and frantically chasing highs.

In my early years, I stubbornly held onto an asset during a bear market, watching it drop from 10 to 3, and my account shrank by 70%. It was only later that I realized: the trend is like a flood; going against it is like trying to block the flood with your hands—pure folly.

Remember, rebounds during a downtrend are mostly 'bull traps'; only the pullbacks during an uptrend are real opportunities. As long as the trend is intact, hold on comfortably; if the trend breaks, exit decisively, don't hesitate!

3. Surging assets: for those that rise more than 5 times, just steer clear.

Beginners are most easily lured by the hype of '100x coins' and '1000x coins.' I fell for this big trap back then! I chased a coin that rose 8 times in a week, but it started crashing on the day I entered, and I lost 80% before I could bear to cut my losses and ended up putting in the last bit of my capital.

Now when I see assets that rise 5 - 10 times in the short term, I don't even bother to get involved. You think you’re picking up a bargain, but the major players have already made their profits and are just waiting for retail investors to jump in. Real reliable assets never rely on short-term spikes to attract attention; they always rise steadily.

4. Trading signals: Beginners don't need to learn the complex stuff; just look at the MACD0 axis.

Don't trust those flashy indicator combinations; the more complex it gets, the more mistakes you'll make. Now 80% of my trades rely on MACD for buying and selling.

Beginners don't need to learn those advanced techniques; just focus on the 0 axis crossover: when DIF and DEA form a golden cross below the 0 axis and break through previous resistance, buy; when they form a dead cross above the 0 axis and break below support, sell quickly.

This trick seems simple, but it can help you avoid most 'false breakouts.' I've used it for four years and have hardly ever stepped into a deadly pit!

5. Averaging down principle: don't add to losing positions; only increase profitable ones.

Many people, after losing, want to 'dollar-cost average to lower their cost.' Let me tell you, that's a suicidal operation! Adding to a losing position is like adding water to a sinking ship; it will only drag you deeper until you're completely trapped.

The correct approach is: only add to your position when you're in profit, the trend is favorable, and the trading volume increases. If the asset is low-priced and surges in volume, that's a good opportunity; but if it's high-priced and the volume surges without an increase, get out quickly, the major players are offloading!

Remember, always add to positions that are making money, and never shore up losing positions!

6. Review habit: two hours a week beats trading blindly every day.

In my early years, I could trade seven or eight times a day, busy as a top, with my fingers constantly tapping the screen, and the busier I got, the more I lost; my account balance kept dwindling.

Later, I changed to reviewing my trades every Sunday evening for two hours: Which trades were successful? What was the core logic? Which trades were mistakes? Was the issue with position size or signal judgment? How can I avoid these pitfalls next time?

Slowly, I formed my own trading system. Now I trade at most 3 times a week, making 10 times more than before!

In the crypto market, it's not about speed; it's about awareness and discipline. A hundred reckless trades are worth less than one thorough review.

To be honest, after spending 7 years in the crypto space, I've seen too many people make money by luck, only to lose it all back through their own skill. This has never been a casino; it’s a battlefield for turning awareness into profit— the stricter your risk control, the steadier you walk.

Did you lose your way as soon as you entered the market? Are you stuck after being trapped, unsure whether to cut losses or hold on? Stop overthinking; the more you think, the more confused you get!

Follow me! In the future, I will thoroughly share the 10 deadly pitfalls I encountered, the 3 core techniques for selecting assets, and advanced MACD usage. Follow the experienced drivers to avoid three years of detours and steer clear of those traps that could wipe you out!