Today, I won't talk about the myth of getting rich overnight, but share 10 iron rules that helped me survive—each one is a lesson learned with real money.
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1. Hold onto your low-priced chips, don't let the manipulators 'wash you out'
The cruelest trick in the market is 'wash trading': creating panic through repeated fluctuations, forcing you to give up your chips.
My approach: As long as the fundamentals of the cryptocurrency remain unchanged (such as BTC halving, ETH upgrades), I will not cut losses if it falls within 20% of the cost line.
Example: When BTC fell from 60,000 to 40,000 in 2023, I insisted on dollar-cost averaging, and when the bull market rebounded to 80,000, my profits doubled
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2. The trend is the only ally; going against the trend = suicide
"In a bull market, no one talks about the peak; in a bear market, no one talks about the bottom"—blindly chasing highs and lows is the primary reason retail investors lose money.
Judgment criteria: Only when the daily line stands above the 200-day moving average can it be considered an upward trend; otherwise, wait in cash.
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Discipline: In a one-sided market, I only add to my position gradually when it retraces to key support levels (like the 30-day moving average).
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3. Layered profit release, refuse "paper wealth".
Many people earn but do not take profits, resulting in profit givebacks. My principle is:
Withdraw 30% when profits reach 50% (exchange for USDT or stablecoins);
Set a break-even stop-loss for remaining positions and let profits run.
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4. Do not be greedy during sharp rises, do not panic during sharp declines.
During a sharp rise: for example, if there's a 30% increase in a single day, I will reduce my position by 50% to avoid being trapped by the main force.
During a sharp decline: if the fundamentals are not broken (like a BTC black swan), instead, buy the dip when the fear index is at 20.
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5. Position management > technical analysis.
"343 allocation method": 30% for testing, 40% for adding on dips, and 30% for additional investment after confirming the trend.
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No single cryptocurrency should exceed 20% of total funds to avoid the risk of total loss.
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6. The ripple effect is a "barometer".
BTC's rise and fall determines 80% of the direction of other coins, but strong coins (like AI sector RNDR) will have independent market movements.
Observation tool: TradingView multi-coin comparison feature to discover capital rotation.
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7. The ratio of hot coins to value coins.
70% of funds should be invested in value coins (BTC/ETH, etc.);
30% in hot coins (new coins, meme coins), but set a 5% stop-loss line to prevent total loss.
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8. Always keep enough cash.
Keep at least 30% USDT in the account to deal with black swans. For example, in January 2024, when the market crashed, I bought the dip in BTC and made a 40% profit.
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Reviewing records is the core of progress.
I review my trading records weekly, focusing on analyzing:
Reasons for losing trades (like incorrect stop-loss settings, emotional trading);
Common traits of successful trades (like specific candlestick patterns, on-chain signals).
10. Mute the noise and stick to the system.
The crypto space is full of "get rich overnight" stories, but 90% of people won't survive the bull and bear markets. The true winners are those who repeat simple rules 1000 times:
Do not use leverage over 5 times;
Do not trade unfamiliar coins;
Do not chase prices due to FOMO (fear of missing out).
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The last sincere words.
The crypto space is not a casino, but a battlefield of discipline and cognition. In 2025, I will focus on tracking the "RWA+AI" track. If you want to see specific opportunity analyses, follow me for a share next week (the layout map for the next bull market)!#BTC If you are confused about how to operate with trapped positions, follow me, and I will use practical experience to help you avoid pitfalls, safeguard your capital, and gradually earn profits!
