In the trading market, making money and losing money often just come down to one thing: execution.

Seemingly simple and straightforward trading rules are actually the easiest to implement and have the most direct effects. Today, let's talk about those underlying logics that many people know but few can actually practice.

**First, three pitfalls to avoid**

Chasing highs and selling lows is the number one killer. During sharp price surges, FOMO emotions are at their strongest—thinking "this time is different" traps 90% of retail investors. True traders do the opposite: when the market is all red and no one dares to look at the K-line, that’s actually the best opportunity to buy the dip. The hardest moments psychologically are often the most profitable.

Second, going all-in on a single coin is no different from gambling. Putting all your funds into one asset can’t withstand even small fluctuations. Keep about 30% cash on hand for flexible deployment, so you can add to positions during crashes and avoid being stuck with no room to maneuver.

Lastly, the trap of full-position all-in. Market opportunities are always abundant, but being fully invested ties your hands, causing you to miss other chances. Proper position management is the real protective shield—it allows you to still have the strength to act at critical moments.

**Next, six practical tips**

Don’t trust sideways consolidation at high levels. When the market repeatedly tests high levels, it’s likely just a false breakout setup. Genuine breakouts need time to confirm; until then, it’s better to stay in cash and wait. The same applies to bottoming at low levels—despair often appears just before a turning point—don’t give up when patience is most needed.

Range-bound zones are the most common places for liquidation. When there’s no clear direction, most traders who impulsively trade are already out. True experts tend to reduce their trading frequency during sideways periods, waiting for a confirmed trend before concentrating their investments.

Contrarian thinking is crucial. When a huge bearish candle appears, don’t just think about cutting losses and fleeing; opportunities are often hidden within. Extreme market volatility is usually a sign of a reversal, and low-price positioning at this time offers the best cost advantage.

The speed of a sharp decline hints at the strength of a rebound. Slow declines may signal larger adjustments ahead, but waterfall crashes tend to bottom out quickly and rebound strongly. This is an objective market law—knowing how to leverage it gives you an advantage.

Strategic building of positions is key. In the bottom zone, increase your position by 10% each time the price drops 10%, gradually lowering your average cost. Big players fear disciplined, calm opponents who follow a planned approach.

Be decisive when the trend shifts. After a big rally, if the market enters sideways consolidation, withdraw your principal and let profits float. After a sharp decline and sideways movement, don’t hold onto false hopes—cut losses quickly to preserve ammunition for the next opportunity.

**Final words**

The secret to making money in the crypto space is really just minimizing mistakes and maintaining consistent execution. Everyone can learn these methods, but few stick with them—this is why the market always favors the few who succeed. With a clear direction and strict discipline, you can go further in this ever-changing market.