Having navigated the crypto market for 6 years, from starting with nothing to accumulating assets worth hundreds of millions, I’ve stepped on countless pitfalls along the way. Those painful lessons have gradually been turned into reusable trading methodologies. If you’ve been in the crypto space for over a year and still hovering around the million-dollar threshold, these insights might help you avoid detours.

**The Bottom Line of Capital Management**

If your initial capital is within 200,000, focusing on one major upward wave per year is enough. Don’t fall into the trap of full-position holding and stubbornly holding on; true experts wait patiently for the trend to fully form and then seize the core gains in one go. This is far more cost-effective than frequently cutting losses and trying repeatedly throughout the year.

Demo trading is an essential stage. It allows you to make mistakes and review endlessly, but once real money is involved, a fatal error could mean the end. Maturity in cognition and mindset always comes before capital growth—that’s a matter of sequence.

**Traps of Good News and Market Sentiment**

When major positive news is announced, the best selling window is often the next day’s high open. Good news often precedes bad news; many people greedily want to squeeze out the last bit of profit, only to be crushed at the top. Realizing profits in time is the core skill for long-term survival in the crypto space.

A week before holidays, it’s crucial to proactively reduce positions. Historical trends repeatedly show that important holidays are often accompanied by concentrated selling pressure. Staying in cash or light positions during festivals can successfully avoid most sudden declines—this is seasoned advice.

**Positioning and Trading Strategies**

Mid- to long-term trading requires rolling operations, always reserving some cash. Take partial profits during upward surges, selectively re-enter on pullbacks, and keep your positions flexible. This way, you can sustain your market presence without being knocked out by a major dip.

The focus of short-term trading is simple—volume and candlestick patterns. Prioritize trading coins with high volatility and active charts; those with no volume or movement over the long term are a waste of time.

**Downtrend Pace and Rebound Logic**

The rate of decline directly determines the strength of the rebound—that’s the market’s iron law. Slow declines often lead to weak rebounds, while sharp drops tend to be followed by powerful recoveries. Getting the rhythm right is crucial; never blindly bottom-fish in a slow downtrend.

**The First Principle of Risk Management**

Admit mistakes immediately; stop-loss is always the first principle. Never endure a single loss stubbornly; preserving capital is essential for future battles. As long as the green mountains remain, there’s hope for a real turnaround.

**Simplifying Technical Analysis**

Short-term trading can rely solely on 15-minute candlestick charts combined with KDJ indicators to find entry points. No need to get tangled in complex theories. Focus on key support and resistance levels on small timeframes; buy and sell signals will be clear and straightforward.

One final tip: don’t seek to be perfect or overly diversified. Master two or three trading methods thoroughly. Deeply honing a limited set of techniques is far more reliable than blindly following various strategies. This is my practical summary after 6 years of experience.