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I'm not a mentor, just an old rookie who crawled out of the pit.
I've been in this circle for eight years, from blowing up accounts to now being able to profit steadily. I don't want to boast, and there's no need to. Today, I want to share some real talk—those rules carved out with real gold and silver. Whether they are survival guides or life-saving straws, I hope you can listen.
**Rule 1: Cut losses quickly, the sooner you cut, the longer you survive**
The market doesn't care whether you make money or lose money; it only recognizes trends. I blew up my account twice early on, both times because I thought "just a little longer, and it will rebound." Only later did I realize that stop-loss isn't about admitting defeat—it's about exchanging money for life.
When the price breaks below a key level, don't hesitate—cut your losses immediately. The stop-loss line isn't just for show; it's a high-voltage line—touch it, and you must withdraw. Remember: your principal is your ammunition. Without bullets, even the best market conditions mean nothing to you. No matter how tempting it looks, it's useless.
**Rule 2: After three consecutive losses, turn off the screen and go to sleep**
When the market is chaotic, it's often not your problem—it's the market acting up. Forcing yourself to keep trading will only make you more emotional and lose more.
Three consecutive stop-losses? That means your rhythm is off. Forcing trades at this point is just giving away money. The smartest move is to turn off the screen, go for a walk, and come back when your mind is clear. The market won't run away, but if your capital can't hold up, everything else is meaningless.
**Rule 3: When profit exceeds 30%, withdraw first and then talk**
The numbers in your account are all virtual. Only on-chain transactions are real. I've seen too many people double their accounts and then lose everything again—it's too late to regret.
Take profits when you can, secure your gains. Keep the principal rolling, and store profits in a cold wallet to prevent yourself from getting greedy. There are plenty of opportunities in crypto, but what’s missing are those profits you can hold onto.
**Rule 4: Only trade trend markets; stay silent during sideways**
Sideways markets are the most draining on your mindset and capital. Most people lose money during consolidation not because they can't read the charts, but because they can't sit still. They keep thinking, "It might break out," only to get cut repeatedly.
Learn to wait. Only act when the trend is clear and the direction is obvious. During sideways movement, the best move is to do nothing. You can research with idle funds, but real money should wait for the right moment.
**Rule 5: When your mindset collapses, stop all operations immediately**
This is the most important rule and also the easiest to overlook. When you start revenge trading, placing wrong orders, frequently changing stop-losses, it means you've lost control.
At this moment, the best choice is to leave. Exit the trading interface, leave the charts, even leave your phone. Take a day, two days, a week off—no problem. But if your mindset is messed up and you keep pushing through, you're basically counting down to losing money.
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These five rules aren't some profound theories; they are lessons learned the hard way. Each one is paid for with money. I hope you can avoid some detours.