7 Trading Principles to Avoid 9% Mistakes in the Crypto Market

In the crypto market, most investors lose not because they are not diligent enough, but because they lack methods and are influenced by emotions. The unexpected fluctuations and the market's “foot pull - kick” maneuvers cause many people to continuously fall into the cycle of chasing peaks - cutting bottoms, ultimately losing both their capital and their confidence. 👉 Below are 7 core trading principles, compiled from the practical experience of many seasoned traders. Each principle, if applied correctly, can help investors avoid most risks and optimize profits.

1. Keeping Money During Volatile Times: It's Not Timidity – It's Strategy Many people fear “missing the wave” and rush in when they see the chart moving sideways. In reality, the period of market turbulence is when buyers and sellers are in strong contention, and the direction is unclear. Trading in a turbulent zone is like crossing a road in the fog – if you're lucky, you survive; otherwise, you're wiped out by the market. During these periods, standing outside to observe is always a better choice than trading based on emotions.
2. Encounter “Hot Trend”: Quick Profit - Quick Withdrawal, Don't Hold onto Illusions When a narrative explodes, everyone boasts about profits. But it is precisely at such times that the risk is highest. Trend-following coins often rise rapidly and fall quickly. Therefore, the safe approach: Always set a take profit point. Determine the stop-loss point before entering the order. Do not hold for too long just because of “hoping for further increases.” The market heats up quickly, but when it cools down, it doesn’t give prior notice.
3. When the Market Rises Strongly: Maintain Confidence – Don't Let Small Fluctuations Cause You to Miss Big Opportunities Many investors rush to sell when they see the coin rising sharply due to fear of a correction. However, if the trend has not broken and buying pressure remains, then the fluctuations are just technical corrections. In a clear upward trend: Stick to the price structure Check the candle strength and volume Maintain the position until there are signs of distribution Only those who can maintain their composure in the big waves can reap all the profits.
4. Appearance of Large Volume Bullish Candles: Start Taking Partial Profits A strong bullish candle accompanied by a spike in volume looks very “nice”, but is often a signal that the big players use to attract liquidity and distribute. Standard handling: Take profit at 30% when you see a candle with extremely high volume. Adjust the remaining part according to price action. Do not hold the entire position hoping the market will continue to rise. Taking profits early does not mean losing opportunities – it protects your gains.
5. Use MA Lines as a Guiding Map: Less Noise – High Efficiency Among countless indicator systems, the moving average (MA) remains the simplest yet most reliable tool. Basic application method: Prioritize observing MA5 – MA10 on the daily chartMA5 crosses above MA10 → signal to enter tradeMA5 crosses below MA10 → signal to exit tradeUse MA to determine support – resistance Instead of listening to rumors, believe in the numbers on the chart.
6. Counter-Trend Trading: Against the Emotion People tend to follow the crowd: When the market rises, think “the bull run has started!” When the market falls, panic “it's about to go to 0!” That's an emotional trap. Effective investment is: In an uptrend: hold the position if support is not broken. In a downtrend: wait for stability before entering a trade. Do not let the market be guided by online news or temporary emotions. Only those who cultivate discipline can stand on the winning side.
7. Never Go “All-in”: Build Your Position Gradually – Set Stop-loss Before Placing the Order This is a crucial principle. Do not use more than 10% of capital for each position. Divide into 3-5 purchases to optimize the price. Always set a stop-loss before confirming the transaction. Preserving capital is more important than making quick money. All-in just needs to be wrong once to lose everything. Conclusion Crypto is not a casino. This is a market where knowledge – experience – discipline are directly converted into profit. Those who understand the market better will earn more. Those who are influenced by emotions will pay a higher price. Opportunities in crypto always exist, but only those who are equipped with the right methods know how to seize them.