After years of navigating the crypto world, I've seen stories of overnight riches and also experienced sleepless nights after a margin call. Today, I won't talk about candlestick patterns or boast about dreams of financial freedom; I just want to share six trading iron laws I've summarized from practical experience—these seemingly clumsy rules are actually quite reliable. To survive long in the crypto space, it's more worthwhile than chasing quick profits.

**A sharp rise is inevitably followed by a shakeout; don't be scared by the main force's downward push**

Remember last year's ZEC market. After the price surged rapidly, it was followed by half a month of decline, and many people panicked and sold off. What happened next? The main force quietly accumulated at low levels and then broke through previous highs. The principle is simple: true tops are never formed by hesitation but by a volume-driven surge followed by a sharp reversal. Those patterns of rising one day and falling three days are usually the market manipulators shaking out weak hands during the rally, afraid you'll hold too firmly.

**A rebound after a sharp decline is not a reversal; a weak upward trend is a trap**

During the crypto crash year, Bitcoin plummeted 30%, then weakly rebounded. Many rushed in to buy the dip, only to get trapped halfway up the mountain. A weak rebound after a sharp drop is like someone offering you candy—seemingly sweet but actually dangerous. Market manipulators love to play this psychological game—"It’s bound to rebound after such a fall"—and many fall for it. Remember: once the trend breaks, it's better to miss out than to make a wrong move.

**Don't rush to sell on high volume; the real danger is sideways movement with shrinking volume**

Many people panic when they see high volume at the top, but this is a misinterpretation. High volume indicates ongoing market participation; last year, Ethereum's daily turnover rate exceeded 30% during a surge, and it still gained another 50%. The real danger is high-volume exhaustion—price stagnating at a high level with decreasing volume, signaling collective capitulation, like a boiling pot suddenly losing its fire.

**Volume contraction at the bottom is the calm before the storm; don’t get lost in silence**

Low volume at the bottom tests your psychological resilience. After a big drop, no one dares to buy, and trading becomes sparse. Most think the decline will continue. But this is often the best time to position. Those who can hold steady in silence often enjoy the sweetest rebound. The quieter the volume, the fewer the buyers, and the greater the opportunity.

**Moving averages converging is not a good sign; it’s the buildup of pressure before a surge**

When moving averages are tightly clustered, it looks stable but actually indicates energy compression. Like a spring being compressed more and more, the rebound force becomes stronger. Don’t rush to buy at this stage; wait for the trend to confirm before jumping in. Acting impulsively here often results in the worst hits.

**Stop-loss and take-profit are equally important; greed without stop-loss will eventually lead to big losses**

This is the most overlooked yet deadly rule. Many remember to take profits but forget to set stop-losses, turning small gains into big losses. Set your psychological price points and execute when reached—don’t wait for some "miracle." The harsh reality of the crypto world is this: only those who survive can profit, and the dream of quick riches often ends in disappointment.