Having navigated the crypto market for 8 years, I have seen countless dreams of overnight wealth and witnessed even more tragedies of bloodshed and total loss. During this time, I’ve stepped into Ponzi schemes, endured the torment of prolonged bear markets, but ultimately achieved a leap in wealth through a relatively stable methodology—from initial capital to five-figure accumulation.

Many beginners have been trading for a year or two and still losing money. The problem is often not bad luck but simply not understanding the game rules of this market. I have condensed the pitfalls I’ve encountered and the experience I’ve summarized over the years into 10 practical guidelines, serving as a pitfall avoidance guide for newcomers.

**Key Cognitive Aspects**

First, understand this: cognition determines the ceiling of returns. In the early stages, it’s essential to thoroughly test and hone your mindset in a simulated trading environment, because mistakes in a simulation can be corrected infinitely, but a single error in real trading could lead to complete elimination.

If your principal is within 200,000 yuan, don’t think about getting rich overnight. Capturing one major upward wave per year is enough; full-position trading is a big taboo. You must keep enough cash flow to cope with sudden market fluctuations, or a black swan event could force you to cut losses.

**Operational Execution**

The moment a positive news is realized often marks the beginning of a negative one. If you don’t sell promptly on the day of major positive news, you must decisively take profits when the market opens high the next day. Don’t hold onto luck or hope for higher prices. This is a bloody lesson I’ve learned from countless practical experiences.

Before holidays, always reduce your positions in advance. After analyzing 8 years of market data, I found that volatility and the probability of decline increase significantly during holiday periods. Pre-emptively reducing positions to avoid risk is definitely the right move.

For medium- to long-term trading, “rolling operations” are essential skills. Never go all-in at once; sell in batches as prices rise to lock in profits, and buy in stages at lower levels during corrections. This way, you won’t miss out on opportunities and can control risks.

For short-term trading, focus on active assets. Avoid coins with low trading volume and sideways movement; concentrate on those with large fluctuations and sufficient liquidity to find short-term opportunities.

**Detail Skills**

Mastering the rhythm of rebounds is crucial. Coins that decline slowly tend to have sluggish and weak rebounds; conversely, if there’s an accelerated decline, it’s often followed by a quick rebound. Find the right rhythm before acting.

Stop-loss is the bottom line for survival. If you buy wrong, accept it; cut losses promptly to preserve remaining capital. As long as the green mountains remain, there’s hope for a comeback. This seems simple, but few can truly do it.

When monitoring short-term charts, pay attention to the 15-minute K-line. Use indicators like KDJ to find entry and exit points. This is much more reliable than blindly following the trend and is a core skill for stable short-term profits.

Finally, and most importantly: methods should be precise but not expensive. There are countless trading techniques in the market, but you don’t need to master them all. Focus on 1-2 methods, practice them to the extreme, and truly understand their essence. That’s enough to make steady profits in the market.