Who would have thought? Seven years ago, I rushed into the crypto market with a million dollars in capital, and three years later, I almost lost everything — my account only had over 200,000 left, and my spouse and I were arguing to the point of separation. Late at night, I would smoke while staring at the K-line chart, feeling bitter even when taking a sip of water.
Looking back now, I was the typical 'market retail investor': more proactive than anyone in chasing trends, more aggressive than anyone in going all-in, and whenever someone said a certain coin was going to skyrocket, I would rush in overnight to pick it up; when I saw the market drop, I stubbornly held on, always thinking 'the rebound is coming soon,' only to get deeper into trouble. It wasn't until I lost everything that I forced myself to stop — I spent a full three months digging through all my trading records to analyze each transaction, and every single move of going all-in, stubbornly resisting the market, and chasing rising coins felt like a slap in the face.
It was also from that day on that I completely discarded the 'gambler's mentality' and re-examined the market from the perspective of an analyst. Starting again in my fourth year with just over 200,000 remaining, I have steadily advanced to now, and my account has already surpassed 34 million. It's not that I am so smart, but rather that I have stepped into enough pits and learned enough painful lessons. Today, I share these 6 rules earned through blood and tears with you; each one hides the underlying logic of making money.
1. Diversify your funds: cut off risk at the source.
This is my current core for guaranteed profits! Total funds must be divided into 5 equal parts, using only 1 part for each trade. If a single loss reaches 10%, immediately stop loss and exit. Don't think it's 'too conservative'; back in the day, I bet all my funds on a coin and lost 40% in a day. After diversifying, even if I lost 5 times in a row, my total loss would only be 10%, leaving me with the principal to have another chance. Remember: the crypto market is never short of opportunities; what is lacking is the capital that can withstand the opportunities.
2. Go with the trend: don’t confront the market head-on.
In the bear market years, I always thought 'the drop has hit the bottom' and blindly bought into rebound trends, only to find myself trapped deeper. Later, I realized: the market is always right; rebounds during declines are mostly 'trap for baiting', while pullbacks after rises are the real opportunities. Trends are like floods; going against the trend will only result in being crushed. Following the trend, even if you earn slowly, is better than losing quickly.
3. Stay away from short-term explosive coins: pies won't fall from the sky.
Those small coins that surge 5-10 times in a short period look tempting but are actually dangerous — the main players have already profited and are waiting to sell, while retail investors rushing in are just taking over. I once chased after a so-called 'hundred-fold coin', only to be trapped as soon as I entered, ultimately losing 80% and cutting losses to exit. Now whenever I encounter such 'myths of explosive growth', I can't escape fast enough: Truly valuable coins won't rely on short-term speculation to pump up prices; they will only rise steadily.
4. Use MACD for buying and selling: even beginners can make fewer mistakes.
I never look at complex indicators; 80% of my trading relies on MACD signals: When DIF and DEA form a golden cross below the 0 axis and break through a key position, it is a buying point; when they form a death cross above the 0 axis and fall below the support level, I sell decisively. Don't think indicators are useless; they can help you avoid the pitfalls of 'trading by instinct'. If beginners fully understand this signal, the error rate can be directly halved.
5. Do not increase positions when losing, add when making profits: only by going against human nature can one win.
This is the most challenging test of mentality! Adding positions during losses will only deepen your traps; I used to think 'I want to average down', and every time I added, I got trapped again. After making a profit, as long as the market is favorable and volume is high, I can add positions in small amounts to let profits run. Remember two principles: low price with increasing volume is an opportunity; high price with increasing volume not rising must exit; for worthless coins, no matter how cheap, do not touch.
6. Weekly review: more important than frequent trading.
Now I never blindly operate on the market every day; instead, I spend two hours each week reviewing: Which trades did I do right? Which were emotional trades? How should I adjust my strategy? Gradually, I am forming my own trading system. The crypto market is not about 'gambling'; money earned by luck will eventually be lost back through skill. Only by establishing a stable trading logic can one achieve long-term profitability.
In fact, the crypto market has never been a place of 'luck'; it is a battlefield of cognitive realization — your ability to control risks, judge trends, and restrain human nature will ultimately reflect on your account. The 800,000 I lost back then was essentially a 'cognitive tax'.
Looking back at those days of staying up all night watching the market and crying over losses, although they were hard to endure, they helped me grow significantly. If you are currently struggling in the crypto market, don't take the detours I took years ago; if you've already stepped into a pit, don't lose heart — as long as you find the right method and control risks well, making money is actually not that difficult.
In the future, I will continue to break down more practical skills, sharing how to judge trends and how to filter out valuable coins. After all, no one's money comes easily; making money steadily is the way to go. Follow me, and next time let's talk about 'how to use simple methods to determine if a coin is valuable' and avoid those seemingly tempting traps! What is the most painful pit you have stepped into in the crypto market? Let's discuss in the comments and help everyone avoid the pitfalls!
