Trading cryptocurrencies for ten years, I’ve made many detours. It wasn’t until the first three years that I lost 70% before I finally woke up. Later, I summarized these 10 survival rules, which can save you at least five years of learning fees.



**Going Against the Grain Is the Most Profitable**
Most retail investors fail at one point: holding on stubbornly when losing money, and fully selling when making a profit. I do the opposite now. Once profits exceed 15%, if they fall back by 10%, take profit immediately; if losses exceed 5%, cut losses without hesitation—no half a second delay. I strictly adhere to the "10% profit, 5% loss" rule. Out of 100 trades, even with only a 50% win rate, I can still end up earning 800%. It sounds incredible, but the logic is simple—protect profits when you’re winning, cut losses quickly when you’re losing.

**Volume Is the Real Indicator**
A volume decrease to less than 50% of usual during a new high indicates big players are accumulating, and the probability of rising is very high. If prices surge sharply but volume doesn’t exceed twice the usual, it’s likely to continue rising the next day. Breaking through the 20-day moving average and then pulling back on lower volume is a golden buying signal. Many overlook these details, but volume always tells the truth.

**Less Is More for Survival**
Holding a large number of positions and adding to weak ones is a common mistake among retail traders. If you have more than 5 holdings and they’re all in the red, cut down to 2-3. Prioritize selling those that fall below the 20-day moving average. Simplifying your portfolio sounds easy, but executing it tests your mental strength the most.

**Intraday Rhythm Is Key**
In 24-hour trading, don’t fear big intraday drops; most of the time, they rebound. If there’s a sudden surge at the close, reduce your positions immediately—there’s a high chance of a pullback the next day. A useful rule: "Volume increase during a rise indicates continuation; volume decrease during a fall indicates continuation; high volume stagnation signals a top; low volume stabilization signals a bottom; huge volume spike and rapid rise will definitely pull back." Using this logic to interpret intraday fluctuations helps avoid many pitfalls.

**Follow the Trend to Win**
In short-term trading, follow the 5-day moving average; if volume breaks out, follow through. For medium to long-term, watch the 20-day moving average; enter on breakouts, exit on breakdowns. Don’t rely solely on predictions—fund flow is the real truth. Just follow it.

**Rebound Strategies Have Tricks**
When a strong coin surges repeatedly and suddenly breaks the board, it’s called a “first阴 (initial decline).” If the market sentiment is still strong, and the first阴 is sharp with ample turnover, and the next day opens flat or high, with a correction not exceeding 2 days, the probability of a rebound can reach 90%. This requires real trading experience, but once mastered, it’s very profitable.

**Big Gains Require Going All Cash**
After consecutive profits, it’s easy to become overconfident and give everything back. My approach is to force myself to rest after a few wins. Don’t always try to seize every opportunity; that often leads to empty-handed results.

**Stay Calm When Losing Money**
Trading during tough times tests your true skill. The market ultimately rewards those with patience. When the market is bullish, it’s easier to make money; during downturns, it’s much easier to keep losing. The key is to dare to enter and dare to exit—don’t let emotions control you.

**Don’t Lose Your Original Intention**
Crypto trading is about breaking the ordinary; pain is actually a stepping stone to growth. Enduring tough times is the only way to reach financial freedom.

**Cognitive Realization Is the Final Step**
The difficulty in trading crypto lies in continuous learning and genuine execution. Successful traders are always a minority; their profits are fundamentally built on the cognitive blind spots of most people. The crypto world is never short of opportunities, but what’s truly lacking is execution and mindset. I only do real trading, not virtual. If you want to avoid detours and grow steadily, don’t explore alone in the dark—find the right approach, follow the rhythm, and use proven logic to earn stable money.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 8
  • Repost
  • Share
Comment
0/400
RektRecordervip
· 01-11 23:19
The logic of stop-loss and take-profit is indeed perfect; the key is that most people simply can't do it.
View OriginalReply0
StakeWhisperervip
· 01-09 11:11
The stop-loss and take-profit strategy really works. I only understood after losing several times. A 5% stop-loss has saved me many times. If it doesn't work, just run. Many people don't understand trading volume. A decrease in volume followed by a new high is the real signal. Holding too many positions can lead to faster losses. I now stick to just 3 coins. Losing money tests a person the most. Often, it's just that one moment of patience. The strategy of rebound trading sounds simple, but actually requires a lot of experience to execute. I agree with taking a break after making a big profit. Greed really destroys people. A 80% intraday drop is actually a rebound. This pattern is indeed very useful. Following the trend is always more comfortable than prediction. That's how I operate now. The hardest part in life is execution. No matter how good the method is, not executing it is pointless.
View OriginalReply0
HappyToBeDumpedvip
· 01-08 23:50
Take profit and stop loss strategies are indeed powerful, but execution is too difficult; most people are still prone to greed. It sounds simple, but in actual operation, the mentality collapses. It's easy to talk about but hard to do. The anti-rebound strategy sounds good, but how much real trading blood and tears are needed to master it? Holding more than 5 positions and still losing money—this hit me hard, I need to reflect carefully. This logic is sound, but the key is that most people simply can't do it. I am the same.
View OriginalReply0
OnChainDetectivevip
· 01-08 23:49
Volume decreases to new highs... Wait, I need to check the on-chain data. There must be whales manipulating behind the scenes; the real story is in the large transfers that retail investors can't see.
View OriginalReply0
NFT_Therapyvip
· 01-08 23:41
Earning 10% and losing 5% sounds great, but when it comes to actually executing, your mindset collapses—what do you do?
View OriginalReply0
MrRightClickvip
· 01-08 23:37
Ten years of losses to enlightenment, now that's a real crypto story.
View OriginalReply0
SeeYouInFourYearsvip
· 01-08 23:26
Stop loss at 5%, take profit at 15%. Sounds simple, but actually doing it is really tough. As soon as I start, I want to place a big bet. Damn.
View OriginalReply0
GateUser-6bc33122vip
· 01-08 23:22
Losing 70% before realizing, how much psychological torment is that, but the subsequent logic is indeed absolute --- Stop-loss is a hundred times harder than take-profit, very true --- It's all about execution. Everyone understands this theory, but few actually do it --- I've never fully grasped the trading volume aspect; trying a breakout with decreased volume next time --- The anti-rebound strategy sounds a bit high-level; how to practice without real trading? --- Holding no position is the hardest; after making a couple of profits, you want to jump back in. Greed is truly poison --- Breaking through the 20-day moving average and avoiding pitfalls with this method has worked for me --- These ten points look simple, but those who can fully implement all of them are probably million-dollar players --- Losing 70% earlier was truly despairing; now losing only 45% makes me start questioning life --- When your mentality collapses, everything is over. This statement is spot on
View OriginalReply0
  • Pin

Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)