The day before yesterday, a friend made a huge profit by relying on a certain popular coin, and privately shared with me his years of trading insights. To be honest, those suggestions sound very simple, but very few people can truly implement them.

He repeatedly emphasized that there are three things you must never do when trading cryptocurrencies. The first is chasing highs. When everyone is celebrating wildly, rushing in at that moment is just taking the last hit. Conversely, when everyone is terrified and the coin price is dropping sharply, that is actually a greed opportunity. It sounds like old advice, but those who can turn this logic into muscle memory really make money.

The second is placing sell orders. He said many people fall into this trap—once you place a sell order, you are led by the market all the way, and your mindset is prone to breaking. The third is not to be fully invested. The biggest problem with full positions is lack of flexibility—when market fluctuations are large, you can only take the hits passively. Honestly, this market is never short of opportunities; being fully invested can cause you to miss the lowest-cost entry points.

Later, he added six key points for short-term trading. First is the breakout of consolidation. After the coin price repeatedly oscillates at high levels, it usually hits new highs; after consolidating at low levels, it often breaks new lows. So wait until the trend direction is clear before acting—don’t rush.

Next, avoid reckless trading within sideways ranges. He said most losing traders are ruined by this—failing to do something as simple as "not trading." Furthermore, choosing the right candlestick patterns is crucial. Consider daily-level buy signals when there are gap-down bearish candles, and look for selling opportunities when there are bullish candles. The rhythm of the trend is also important—if the decline is fast, the rebound is often quick; if the decline is slow, the rebound can be frustrating.

Learn the pyramid method for building positions—this is the most classic rule of value investing. The last point is how to handle trend reversals—after a coin completes a full cycle of rise and fall, it will inevitably enter consolidation. At this point, there’s no need to rush to clear positions at high levels, nor to buy fully at low levels, because after consolidation, there will definitely be a trend change. The truly important thing is to decisively exit when the trend shifts downward from the high.

This set of logic doesn’t sound complicated, but in the context of a major cycle like the Federal Reserve cutting interest rates, only those who stick to these principles can survive longer in the crypto market.