Looking back at transaction records from four years ago, I feel a bit nostalgic. At that time, Bitcoin was in a correction phase, and out of impulsiveness, I jumped into a small altcoin. As a result, it plummeted for three days, and I truly understood for the first time what it means to "cut losses ruthlessly."

After so many years of market wind and rain, coin rotations, and hot spots rising and falling, the tricks that retail investors lose money on remain the same. Here are some lessons I learned from real money investments that I might as well share.

**Frequent trading, trading fees eat up your principal**

Some people treat trading like gambling, fearing that holding cash means losing money, and they want to be fully invested 24/7. I've seen the most outrageous case—more than fifty trades in a single day, only to find at the end of the month that the profits weren't enough to cover the trading fees. The trading fee rate may seem low, but it adds up with high volume. If your total annual trading volume is 30 times your principal, the fees alone can eat up 9% of your assets. Before making any profit, you're already losing a layer.

The real opportunities are actually waiting to be found. Most of the time, the market just oscillates mildly, and meaningful trend opportunities only occur a few times a year. Constantly trading day after day just wastes energy and judgment, and you might miss the right moment to act. The more you try to catch every fluctuation, the easier you are to be harvested.

**Leverage amplifies not only your gains but also your greed**

Leverage is a double-edged sword; used well, it’s a powerful tool, but used poorly, it’s self-destructive. On the surface, it can double your returns, but in reality, it also doubles your risks. According to data, investors who frequently use leverage above 3x have a surprisingly high probability of losses in volatile markets.