Many people have been messing around in the crypto world for a year or two, but their accounts haven't grown. Instead of blaming bad luck, it's better to say that their methodology has collapsed. Here are the 6 most common trading traps, broken down one by one today.

**Discipline in adding positions, profits come first**

Most people make mistakes when adding positions—about 90%. The correct approach is only to add when in profit; never add when caught in a loss. Before each attempt to add, ask yourself—if you didn't hold a position now, would you dare to buy this coin again? If you can't answer, don't add, and consider reducing your position. A little-known but very effective trick is to flip the K-line chart horizontally; support and resistance levels become instantly clear. This trick is especially useful in the crypto space.

**Minute-by-minute order book, details determine victory or defeat**

Don't panic and cut your position during a sharp decline in the early trading session. The crypto market often experiences deep V-shaped recoveries intraday, and impulsively selling at the bottom is common. Conversely, if there's a sudden surge at the end of the session, reduce your position first; a correction is highly likely the next day. Remember these order book signals: low-volume small bullish candles often indicate a bottom; high volume without price increase suggests big players are unloading, so exit quickly; a large spike followed by a fall is a high-probability event, especially on mainstream coins—this strategy has an astonishing success rate.

**Moving average trading method, the simplest is often the most effective**

If you don't know when to buy or sell, use the simplest method. Stick to the 5-day moving average for short-term trades—hold as long as it doesn't break; exit once it does. For medium-term, look at the 20-day moving average. This approach may seem naive, but it's straightforward and brutal—don't fight the market, follow the trend. Most people can survive longer with this method.

**Stop-loss and take-profit are the lifelines of trading**

Cut losses when necessary. Don't rely on averaging down to turn short-term trades into medium- or long-term holdings; this usually results in increasing losses. After making a profit, keep raising your take-profit level. For example, after a 20% profit, if it retraces 5%, exit; after a 30% profit, if it retraces 10%, close immediately. Profits in the crypto market come quickly; if you can't lock them in, that's the real root of losses.

**How to verify the quality of a coin during a crash**

A market crash is a test of a coin’s strength. If your coin remains stable and sideways, it indicates support from funds, so you can hold with confidence. If your coin drops with the market but then rebounds strongly the next day, it’s often a sign of a shakeout. Such coins can become golden opportunities for low-cost buying during systemic downturns.

**Refuse to chase the rise or sell in panic—this is the beginning of all losses**

Chasing the rise is suicide. The best buying points are always during pullbacks, not when emotions are at their peak. During a decline, stay calm; don't panic and cut your position. Wait until key support levels are confirmed before making decisions. As long as the support isn't broken, keep waiting for a rebound.