Trading Discipline VS Blind Chase, Victory and Defeat Are Already Decided

After years of navigating the crypto market, I have seen too many investors with ample capital flee in panic. A recent experience of a trader left a deep impression: she invested 20,000 yuan, and after three months, her funds shrank to only 600 yuan. In despair, she did not give up but instead spent a month systematically reviewing her trades, then took half a year to turn that 600 yuan into 150,000.

Sounds like a story? Actually, it’s just the routine operation combining cognition and execution. I’ve summarized the principles she later adhered to, all based on practical experience from years of watching the charts.

**Rule 1: During chaotic markets, staying out of the market is the smartest defense**

The crypto market is never short of excitement. Various concepts take turns surging, and beginners are always worried about missing out, often throwing money in blindly. But the reality is: when the K-line oscillates up and down, and the bulls and bears are in fierce opposition, holding cash often yields far better returns than frequent trading.

Early in my career, I lost 40% in a week during a chaotic period due to continuous trading. Only later did I understand: real profit opportunities are not about chasing every small wave but about successfully avoiding deadly traps. When trading volume dries up and moving averages are a mess, waiting is the most rational decision—either do nothing or trade with high probability of success.

**Rule 2: Hot sectors don’t require faith; quick in and out is efficiency**

Whenever a hot concept explodes, there’s always a group of people following with the idea of “holding long-term with faith.” Little do they realize that opportunities in hot assets are often short-lived, not allowing you to wait for “long-term” gains. The real strategy is: enter precisely, profit quickly, and exit decisively.