4 Great Iron Rules to Help You Avoid 90% of Traps in the Cryptocurrency World!

Just entering the cryptocurrency market, many people see perpetual contracts as a "wealth password," fantasizing about overnight riches.

But the reality is that those who frequently make reckless trades, trade emotionally, or go all in on a whim usually end up losing everything.

After struggling in the cryptocurrency market for so long, what I rely on is not some secret to wealth but these 4 life-saving iron rules. While they may not turn your fortunes around instantly, they can help you survive in the cryptocurrency world—remember, in the cryptocurrency market, if you can survive, you've already won half the battle!

1. Keep Some Position, Refuse to Go All In

What beginners love to do is charge in with full positions when the market heats up, which is simply a path to self-destruction. A small market correction can leave you devastated, completely out of the game.

The prudent approach is to always leave yourself a way out, allowing for some trial and error. Making one mistake isn’t scary, but making three in a row could lead to irreparable losses. Keep your positions stable, and you can go further.

2. Go with the Trend, Don’t Guess Tops and Bottoms

Human nature is greedy; we always want to buy at the lowest and sell at the highest. However, the ones who truly make money are often those who go with the trend. A pullback in an upward trend is an opportunity gifted to you, not a trap. As long as the trend holds, stay steady and don’t fumble around. Remember, the likelihood of a trend continuing is much higher than that of a reversal.

3. Cut Losses and Take Profits, Build Strong Defenses

Knowing when to enter is just the beginning; knowing when to exit is what makes you a master. Without discipline, even the most accurate judgments are useless. Here are three golden rules: single trade losses should not exceed 5% of total capital, single trade profits should be at least 5%, and overall win rates should be maintained above 50%. If you stick to these three rules, your capital curve will steadily rise.

4. Reduce Trades and Wait Patiently

Trading is not about speed but about timing. Making five or six trades a day or over a hundred trades a month often leads to greater losses. Planning just 2-3 key trades daily is far more useful than randomly making a hundred trades. There are plenty of opportunities in the market, and you don’t need to be immersed in it every minute.

Remember this twelve-character mantra: Don’t go all in, follow the trend, set a bottom line, and trade less. In the cryptocurrency market, those who can survive, remain steady, and wait patiently are the true winners who will laugh last! #加密市场反弹