Over the years in the crypto world, I have witnessed too many dramatic scenes—some people doubling their holdings overnight only to fall back to the original point, and others choosing to give up in despair. Many often ask me why they keep getting cut. Honestly, most people don’t lose because of the market itself, but because of uncontrolled human nature: greed, luck, and panic spreading. Any one of these demons can wipe you out completely.
The ten trading principles I’ve learned from paying tuition are more like a methodology for survival than just rules. I don’t promise overnight riches, but these disciplines might help you preserve your capital and endure until that critical moment.
**1. In moments of extreme panic, there are seeds of opportunity**
When the market drops nine days in a row from a high, the discussion forums fall silent, and retail investors start cutting losses and fleeing. At this point, many see no hope, but in reality, the main players are quietly accumulating at this emotional low. The game rule for the big players is to use collective emotional resonance to harvest. When most people are panicking and selling, it’s precisely the opportunity for contrarians to jump in. But here’s the prerequisite—don’t go all-in at once. Lay out your positions in batches and consider adding more only after confirming signals on the right side.
**2. After two consecutive bullish candles, it’s time to take profits**
Any coin that rises sharply for two days in a row often signals that selling pressure is about to come. There are no miracles of straight-line surges in crypto; short-term spikes are usually tricks by the main players to lure more buyers. Experience tells me that reducing your holdings by 30% before the second bullish candle closes is a safer approach. When your profits are padded, your mindset becomes much more stable, making impulsive decisions less likely.
**3. If a single-day rally exceeds 7%, beware of chasing the high the next day**
If a coin suddenly jumps more than 7% with one big bullish candle, it indicates that the main players have already started moving. But this is rarely the final goal of the trend; it often means that the next day will see inertia-driven high. This is crucial—riding the high is a signal to exit, not to chase higher. When retail investors rush in en masse, it’s often the moment the scythe falls.
**4. Pullbacks are the real buying opportunities**
Chasing after a sudden surge without patience? That’s a rookie move. The truly worthwhile coins to position in are those that pull back to key support levels (like the 30-day moving average) and stabilize before considering entry. Don’t be scared off by short-term gains; patience is the fundamental skill for making big money.
**5. Candlestick patterns must be supported by volume—volume reveals the truth**
No matter how beautiful a pattern looks, without volume support, it’s just an illusion. A volume-driven rally indicates genuine buying strength; a rise on declining volume is often just a facade by the main players. Learning to read the relationship between volume and price can help you avoid many pitfalls.
**6. Breakouts at technical levels must be confirmed by volume**
When the price breaks through an important resistance level, volume must confirm the move; otherwise, it’s likely a false breakout. Fake breakouts are the most deceptive because they seem promising but quickly reverse.
**7. Set stop-losses outside your psychological thresholds**
Don’t place stop-losses at critical technical levels, as it’s too easy to get shaken out. Instead, set them beyond your acceptable loss range and key support levels, giving your trade some breathing room.
**8. During panic drops caused by bad news, there are often contrarian opportunities**
Panic selling triggered by bad news, especially emotional large-scale sell-offs, can create opportunities for prepared traders. But the premise is that the bad news isn’t fatal and can be recovered from.
**9. High-volatility small coins are not playgrounds for beginners**
Coins with daily volatility over 20% may seem to make quick money, but the risks are equally high. Those lacking sufficient experience often chase illusions here and end up losing real money.
**10. Money management always comes first**
No matter how optimistic you are about a coin, never allocate more than 10% of your total funds to a single position. Diversify and control risks—this isn’t conservatism, but wisdom for longevity. Many people have been completely wiped out in a single full-position operation.
These ten principles are not some profound theories but insights from long-term market practice. Each one could save your life at a critical moment. The crypto market changes rapidly, but human nature always cycles. Internalize these lessons, and maybe the next person to survive the bull market will be you.
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CommunityLurker
· 14h ago
That's right, but execution is the hardest part. I know I should cut losses every time, but I just can't bring myself to do it.
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Greed really is poison. Seeing two consecutive bullish candles, I start thinking about going all-in, but then the third day hits the limit down.
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The most heartbreaking part is still the money management rule. I used to go all-in all the time, but looking back, it was really a reckless move.
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Should you panic and buy more? That kind of mindset needs to be cultivated over years; I need to practice for a few more years.
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I understand the logic of wanting to sell after a continuous rise, but how do you determine the real starting point of a rally? It still depends on experience.
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That small coin is so right. I've seen too many people fooled by high volatility illusions, ending up losing everything.
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All ten points make sense, but when the market gets crazy, people tend to forget.
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Regarding volume, many fake breakouts rely on decreasing volume to deceive, and it looks especially tempting.
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SerLiquidated
· 17h ago
That's so true. Greed is really the biggest killer. I've seen too many buddies who just go into a trance after two green candles.
Once you've gone all-in, don't expect to do it again. That feeling... never mind, I won't mention it.
Is panic selling actually an opportunity? It sounds simple, but very few can really hold their finger and stick to it.
Wait, only buy near the key support level? That takes incredible discipline. I always can't resist chasing the high.
Good fund management is important, but unfortunately most people just go all-in after making some profit, then lose everything in one shot.
The first point hits the hardest. I'm that kind of fool who chases after high prices. Now I don't even dare to look at my account.
When there's a big rally, you should reduce your position. I understand the logic, but the problem is greed. Always want to earn a little more, and then... ha, don't even mention it.
Everything seems right, but when it comes to actual trading, the brain just doesn't cooperate. Isn't this the norm in the crypto world?
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PumpStrategist
· 17h ago
Two consecutive bullish candles and you want to run, I've been tired of this logic long ago. What about the volume?
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The pattern is formed but the chips are highly dispersed. This kind of rebound is just a trap, with a 97% probability.
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It sounds good, but isn't it just a refined packaging of the leek thinking?
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Point 8 is interesting, but it depends on whether that bad news can fully release the risk; otherwise, it's just a rebound, not a reversal.
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The 10% position limit is indeed correct. I realized this during a certain all-in trade [laugh/cry].
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I approve of the volume-decreasing rally segment. The market sentiment indicator immediately reveals the truth.
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Waiting for the correction forever is pointless. Better learn to identify bottom divergence.
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Technical support without volume validation is all air.
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All ten points boil down to one word: alive.
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During panic selling, there is often a clear divergence between price and volume. It should have been seen three days earlier.
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BTCWaveRider
· 17h ago
It's one thing to say, but how many can actually do it? I just died from greed.
Some points are really hitting home, especially point 10. I used to go all-in with full positions, now I can only watch others take off.
Panic indeed offers the greatest opportunities, just worried about running out of bullets.
I agree with this set of theories, but executing them is really much harder than just talking about it.
Running after two consecutive bullish candles sounds safe, but I always sell too early and watch the coin keep rising.
In terms of news, you really need to think in reverse; often, the dip is actually the bottom.
The relationship between volume and price is the key; I’ve suffered quite a few losses by ignoring trading volume before.
I basically don’t touch small-cap coins anymore; it’s too刺激.
If I had understood these ten points earlier, it would have saved me a lot of tuition fees.
The last sentence is spot on—human nature is always cyclical, and the scripts in the crypto world are just a few variations.
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BlockchainArchaeologist
· 17h ago
It's too realistic—it's the hardest part about greed.
No matter how much you earn, you can't withstand a full-margin all-in.
I’ve learned a lesson from cutting losses—it's one word: patience.
Over the years in the crypto world, I have witnessed too many dramatic scenes—some people doubling their holdings overnight only to fall back to the original point, and others choosing to give up in despair. Many often ask me why they keep getting cut. Honestly, most people don’t lose because of the market itself, but because of uncontrolled human nature: greed, luck, and panic spreading. Any one of these demons can wipe you out completely.
The ten trading principles I’ve learned from paying tuition are more like a methodology for survival than just rules. I don’t promise overnight riches, but these disciplines might help you preserve your capital and endure until that critical moment.
**1. In moments of extreme panic, there are seeds of opportunity**
When the market drops nine days in a row from a high, the discussion forums fall silent, and retail investors start cutting losses and fleeing. At this point, many see no hope, but in reality, the main players are quietly accumulating at this emotional low. The game rule for the big players is to use collective emotional resonance to harvest. When most people are panicking and selling, it’s precisely the opportunity for contrarians to jump in. But here’s the prerequisite—don’t go all-in at once. Lay out your positions in batches and consider adding more only after confirming signals on the right side.
**2. After two consecutive bullish candles, it’s time to take profits**
Any coin that rises sharply for two days in a row often signals that selling pressure is about to come. There are no miracles of straight-line surges in crypto; short-term spikes are usually tricks by the main players to lure more buyers. Experience tells me that reducing your holdings by 30% before the second bullish candle closes is a safer approach. When your profits are padded, your mindset becomes much more stable, making impulsive decisions less likely.
**3. If a single-day rally exceeds 7%, beware of chasing the high the next day**
If a coin suddenly jumps more than 7% with one big bullish candle, it indicates that the main players have already started moving. But this is rarely the final goal of the trend; it often means that the next day will see inertia-driven high. This is crucial—riding the high is a signal to exit, not to chase higher. When retail investors rush in en masse, it’s often the moment the scythe falls.
**4. Pullbacks are the real buying opportunities**
Chasing after a sudden surge without patience? That’s a rookie move. The truly worthwhile coins to position in are those that pull back to key support levels (like the 30-day moving average) and stabilize before considering entry. Don’t be scared off by short-term gains; patience is the fundamental skill for making big money.
**5. Candlestick patterns must be supported by volume—volume reveals the truth**
No matter how beautiful a pattern looks, without volume support, it’s just an illusion. A volume-driven rally indicates genuine buying strength; a rise on declining volume is often just a facade by the main players. Learning to read the relationship between volume and price can help you avoid many pitfalls.
**6. Breakouts at technical levels must be confirmed by volume**
When the price breaks through an important resistance level, volume must confirm the move; otherwise, it’s likely a false breakout. Fake breakouts are the most deceptive because they seem promising but quickly reverse.
**7. Set stop-losses outside your psychological thresholds**
Don’t place stop-losses at critical technical levels, as it’s too easy to get shaken out. Instead, set them beyond your acceptable loss range and key support levels, giving your trade some breathing room.
**8. During panic drops caused by bad news, there are often contrarian opportunities**
Panic selling triggered by bad news, especially emotional large-scale sell-offs, can create opportunities for prepared traders. But the premise is that the bad news isn’t fatal and can be recovered from.
**9. High-volatility small coins are not playgrounds for beginners**
Coins with daily volatility over 20% may seem to make quick money, but the risks are equally high. Those lacking sufficient experience often chase illusions here and end up losing real money.
**10. Money management always comes first**
No matter how optimistic you are about a coin, never allocate more than 10% of your total funds to a single position. Diversify and control risks—this isn’t conservatism, but wisdom for longevity. Many people have been completely wiped out in a single full-position operation.
These ten principles are not some profound theories but insights from long-term market practice. Each one could save your life at a critical moment. The crypto market changes rapidly, but human nature always cycles. Internalize these lessons, and maybe the next person to survive the bull market will be you.