Many people enter the market with the idea of getting rich overnight, but they often end up losing everything. I have also made many detours along the way, and now I have summarized five truly effective trading principles to share with everyone.

**First, stop-loss is never a failure.** In my early years, I panicked after several consecutive stop-losses, rushing to recover my losses, which only made things worse and nearly led to liquidation. Later, I realized that when consecutive stop-losses occur, you must stop immediately, calmly review the issues, and never trade impulsively with emotions. Preserving your capital is the key to having another chance to make money.

**Second, keep your position within 10%.** Beginners are most likely to go all-in and gamble, dreaming of doubling their money in minutes, but most of the time, they end up zeroing out. I also suffered from this mistake back then. Now, even when the market looks very tempting, I strictly limit my position to below 10%. I prefer to earn slowly rather than gamble my entire assets.

**Third, trading with the trend is the way to go.** The only outcome of fighting against the trend is continuous loss. When the market forms a one-sided trend, following the trend is more important than anything else. Don’t worry about hitting the absolute high; the key is to avoid being slapped back by the market, and protecting your profits is the core.

**Fourth, the risk-reward ratio must be worthwhile.** I set a strict standard for myself: at least 2:1 risk-reward ratio, and I will not act if it doesn’t meet this. First, determine your take-profit and stop-loss points, then decide whether to enter the trade. Even if you make several wrong judgments, as long as you seize one or two good opportunities, you can recover all previous losses.

**Fifth, don’t indulge in high-frequency trading.** Frequent trading only increases transaction fees and muddles your thinking. I now set two time periods for monitoring the market: once before the opening, and once before the close. Less trading is actually the greatest discipline in crypto trading; clear thinking leads to more stable profits.