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Having traded in the crypto space for these years, I've seen too many people come in and go out. In the end, I realized that the key to making money doesn't lie in some advanced technique; frankly, it's just two words: emotions and discipline.
Taking $ZEC $FLOW and other volatile coins as examples, I’ve gradually summarized eight rules that I’ve stubbornly stuck to. They’re not secret tricks, but following them at least prevents catastrophic losses.
**Rule 1: Don’t Let Emotions Decide for You**
When the whole network is shouting bullish, and you chase the high? That’s the rhythm of chasing the top. Conversely, when there’s a lot of panic, you need to see clearly—often, there are opportunities then. A few years ago, I was like this: no matter how fast it rose, I hit the brakes; when it fell, I kept trying to buy the dip, only to chase the high and get cut. I paid a lot of tuition fees for that.
**Rule 2: Going All-In Is Gambling**
Full position sounds exciting, but once your mindset collapses, your judgment completely changes. The larger your position, the easier you are to be shaken out. Market opportunities are always there; the key is to keep some reserve funds so you have bullets when real opportunities come.
**Rule 3: When the Direction Is Unclear, Stay Put**
Sideways movement at high levels might just be a false breakout; at low levels, it might still be in a downtrend. Many retail traders get stuck here: they can’t see the direction but still guess, ending up losing everything in one shot. Better to miss out than to act blindly.
**Rule 4: Consolidation Markets Are the Most Draining**
People often think they lose in the big trend, but that’s not true. Most losses happen during sideways trading, with repeated entries and exits, eating up fees and destroying your rhythm without realizing it. That’s why some people are busy all day but keep losing more.
**Rule 5: Dare to Buy on Dips, Take Profits on Rises**
When a big bearish candle appears on the daily chart, building positions gradually is meaningful. During continuous bullish runs, learning to take profits is also crucial. This approach isn’t exciting, but it’s extremely effective.
**Rule 6: Speed Matters More Than Price Levels**
A slow decline is the most torturous, and rebounds are hard to catch. But if the price accelerates downward, it might quickly bounce back. Don’t just look at how many points it drops; changes in speed are often more informative.
**Rule 7: Building Positions Is Like Laying a Road, Not Jumping Off a Building**
The bigger the decline, the more you buy—gradually spreading out your entries, using time to build your position. Instead of betting on a specific price point, bet on the whole process. It’s much more comfortable mentally.
**Rule 8: Breakouts from Consolidation Are the Real Signals**
When prices rise too much, they consolidate; when they fall too much, they also consolidate. Don’t fully sell out during sideways moves, nor try to bottom fish all at once. Wait until the trend is clear before following.
Ultimately, trading is a battle between your greed and fear. These methods aren’t complicated; the real challenge is sticking to them. Instead of dreaming of overnight riches, it’s better to steadily build replicable profits. That’s how you truly survive in the market.