Brothers! Let me be clear with you, after 12 years in the crypto circle, I haven't relied on any insider information, nor have I touched any 'wealth codes.' I've survived solely on 8 rules I stumbled upon myself, managing to stay afloat through 3 major crashes; not having my account wiped out is already a win, and now I can chat with you all here comfortably.
To be honest, every day in this circle, some people shout 'bottom fishing' and 'hundred times coins,' while others cry out 'liquidated.' I've seen too many newbies get deceived by K-lines and misled by big influencers, losing their principal in just a few days. Today, I'm not going to be vague; I'm sharing my 8 survival rules that I've kept for tough times, all of which are hard-earned insights. After reading this, you can avoid 90% of the detours!
1. Don't be a K-line 'licking dog' for short trades! The 30-minute line plus market resonance is the lifeline.
Many novices focus on short-term trades, fixating on daily lines and panicking at the sight of long upper shadows, immediately cutting losses and running away, only to find the next day a big bullish candle appears, slapping their faces. I fell into this trap early on and later understood—daily lines can sometimes be 'deceptive players.'
What’s truly reliable is treating the 30-minute line as a 'magnifying glass,' combined with overall market stabilization signals. For example, a coin might look precarious on the daily line, but the 30-minute line has shown a structure of stopping the fall and rebounding, and when you see mainstream coins are not falling, that’s when it’s safer to buy. Remember, short-term trading is about precision, not wild guesses.
2. If the trend is not right, leave immediately! Even looking a second longer is disrespectful to your capital.
I have emphasized countless times with my students: when dealing with crypto assets, going with the trend is not just talk, it’s a lesson learned with real money. What does it mean when the trend is wrong? It means the original upward rhythm has been broken, the key support level has been broken like paper, and the K-line patterns are as chaotic as a pot of porridge.
At this time, don't hold onto the fantasy of 'what if it rebounds,' and don't stubbornly hold on. The last time I encountered a mainstream coin going bad, I still had a lucky mindset and added to my position, only to lose 20% in three days, giving back half of my profits. Since then, I established a rule: once the trend breaks, clear the position immediately, even if it rebounds later, I won't regret—missing out is a thousand times better than being stuck.
3. Don't touch 'obscure orphan coins' for short trades! Hot ones are the favored children of capital.
The most taboo thing about short trading is competing with yourself, insisting on digging for 'undervalued obscure coins.' I tell you, in the crypto circle, where the funds are, there are opportunities. Hot or potentially hot coins, with funds chasing them, will have short-term markets; those obscure coins, with pitiful daily trading volumes, fluctuate more like an electrocardiogram. If you focus on them, you are not only wasting time but also missing out on real opportunities.
I made this mistake before, buying an obscure coin with the mindset of 'picking up bargains,' holding it for half a month, with daily fluctuations of just a few cents. When I finally cut my losses and left, I found that the hot coins during the same period had risen by 50%. Since then, I only look for opportunities in hot pools, preferring to wait for the next hot trend rather than touching obscure coins.
4. Don't be an 'impulsive player'! Write down your plan on paper before trading.
What the crypto circle lacks the most is 'hot-headed players': rushing in when they see others calling, chasing when they see coin prices rise, completely without a plan. What’s the result? Either they chase at the peak or set stop-losses halfway down, and when they lose, they just beat their thighs.
My rule is: first 'plan your trade,' then 'trade your plan.' Before each entry, I must write down the entry point, stop-loss level, and take-profit level on paper, and even think clearly about 'if it breaks the stop-loss level, should I add to my position?' 'If it reaches the take-profit level, should I sell all or keep half?' Once I clarify these points, it becomes hard for emotions to sway me. I've seen too many people get repeatedly harvested by the market because they had no plan.
5. Treat the words of big names as 'references,' not as 'orders'! Your own decisions are the most reliable.
Now the news in the crypto circle is more chaotic than gossip in a market. Zhang San says this coin will rise, Li Si says that coin will fall, and all sorts of 'insider information' is flying around. I used to believe in a big name's call, only to get stuck after chasing in, later finding out that the big name was just cashing in on the project’s money to cut down leeks.
Remember, everyone's analysis has limitations, even big names can make mistakes. The only one truly responsible for your capital is yourself. My habit is: when I see someone else's viewpoint, I first check the information, analyze the market, and make decisions based on my judgment. Even if I end up being wrong, I can still learn something from it, which is better than being cut down like leeks by others.
6. First determine the direction, then choose the targets! If the direction is wrong, all efforts will be in vain.
Many people trade by first focusing on a heap of coins, picking what seems to be 'high quality,' and then end up buying and watching it drop. Why? Because the direction was wrong. In the crypto circle, direction is 10 times more important than the asset—if the overall trend is down, even if you choose the best mainstream coin, it will be hard to have a market; if the overall trend is up, even an ordinary hot coin can rise.
My approach is: first analyze the overall market direction, determining whether it is up, down, or sideways. If the direction is up, choose targets from hot sectors; if the direction is down, just stay in cash and observe, even if some coins are rebounding, do not touch them. Instead of struggling in the wrong lane, it’s better to find the right direction for greater efficiency.
7. Don't be a 'bottom-fishing hero'! Only coins in an upward trend are worth your effort.
'Bottom-fishing' is one of the biggest pitfalls in the crypto world, with so many people falling into this trap. Always thinking 'if it drops to the floor, I can buy and make a lot of money,' only to find themselves caught halfway down, with more severe drops waiting. I fell into this trap early on, buying a coin that dropped from 100 to 50, thinking it was the bottom, only to see it drop to 20 and get stuck.
Later I realized: coin prices always move towards directions with less resistance. Coins that are rising have less resistance and a greater probability of continuing to rise; coins that are falling have more resistance and a lower probability of rebounding. Instead of taking risks to bottom-fish, it’s better to invest in coins that are rising and follow the trend. Remember, we trade to make money, not to be 'brave warriors.'
8. After a big profit or a big loss, force yourself to stay in cash and review! This is my most core survival tactic.
This is the most core and valued principle in my 12-year trading career, without exception. After making a big profit, people can easily get carried away, thinking they are 'invincible,' and then they relax their vigilance, trading carelessly, resulting in giving back the money they made; after a big loss, people tend to be anxious, thinking 'I need to make it back quickly,' which leads to more mistakes and even greater losses.
My rule is: as long as there’s a big profit or a big loss, I force myself to stay in cash for 1-3 days to review carefully. If I made a profit, I think 'why was I able to earn this time? Was it luck or skill? Can I replicate it next time?'; if I made a loss, I think 'why did I lose this time? Was it a plan error or an execution error? What needs to be improved?'. Once my mindset calms down and I clarify the reasons for the profits and losses, I can re-enter, with the probability of being correct exceeding 90%. This rule has helped me avoid the cycle of 'earning then losing' countless times.
The above 8 points are not lofty theories; they are all survival rules I earned through 12 years of hard work with real money. Before each entry, I review these 8 points to remind myself not to be confused.
Brothers, the cryptocurrency circle is not a casino. To survive for a long time, it relies not on luck, but on rules. If you find these 8 points useful, please give a follow.
