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Making money in the crypto world is often not because you're smarter, but because you follow a few more rules than others. Today I want to talk about those trading principles that have been repeatedly proven effective—these methods aren't complicated, but they can help you avoid the pitfalls most people fall into.
Let's start with the three most common habits that lead to losses.
Chasing highs and selling lows is almost the fate of all beginners. When the price surges to a high, everyone gets excited and follows the trend, only to get caught at the top. Conversely, those who consistently profit are the opposite—they quietly position themselves when the market is crying and the app is flashing red across the screen. This isn't about luck; it's about picking up the cheapest chips during the most panic-stricken moments.
Going all-in on a single coin is also a big trap. Putting all your funds into one project is like entrusting your life to a single asset. In practice, you should keep about 30% of your capital as cash—this way, when the market dips, you can buy more, and when new opportunities arise, you can participate calmly instead of being caught off guard.
Full position trading is even more to be avoided. Going all-in is like tying a chain around yourself—unable to handle volatility and missing out on opportunities. Position management may seem simple, but it's actually the most robust moat in the crypto circle.
Next, here are some practical principles for short-term trading.
Consolidation phases are the easiest to mess up. Don't rush during high sideways movement; don't panic during low bases. Until the direction is confirmed, controlling your hands is half the victory. During sideways periods, unpredictable fluctuations can easily lead to liquidation. Instead of frequent operations, it's better to patiently wait for a breakout or a clear correction signal.
In terms of trading rhythm, reverse thinking is often more stable. During a decline, buy in stages; during a steady rise, take profits promptly—sounds simple, but that's the most efficient approach. Don't panic during sharp drops; rebounds after rapid declines are often swift, and waterfall declines are the best window for low-cost accumulation.
Regarding specific accumulation methods, the pyramid approach is the most practical. When the price drops 10% in the bottom zone, buy some more—gradually lowering your average cost, which naturally widens your profit space later. Another key principle is to learn to cut losses promptly when the trend reverses—after a sharp rise followed by sideways movement, withdraw your principal to lock in profits; after a sharp drop and sideways movement, cut your losses decisively instead of hoping for a rebound.
The brilliance of this method lies in its non-reliance on guessing the market direction, not chasing hot trends, and not gambling on luck—it's about following rules. The requirements aren't complicated, but strict discipline in execution is essential. Start with small funds, use this logic to steadily grow your position, protect your capital, and lock in profits. Over time, the power of compound growth will surprise you.
Market corrections test your mindset the most and reveal who truly understands these rules. Instead of exploring alone, find like-minded partners and earn steady profits together with proven, reliable logic.