2026-01-07 01:23:06

Many newcomers in the crypto space often stumble, mainly because they haven't understood a few basic principles. This time, I’ve organized some of my experiences as a reference to help everyone avoid pitfalls.

**Be extra cautious when adding positions.** Only consider increasing your holdings when your account is in profit. Never add to a position that is already under water. Before adding, ask yourself: if I were currently out of the market, would I enter now? If the answer is no, then don’t act, and even consider reducing your position. Looking at the candlestick charts, you can see that resistance and support levels are clearly marked. This method has been repeatedly validated in live trading.

**Details in the order book are easily overlooked.** Don’t rush to cut your position during a morning decline; deep V-shaped reversals within the day are very common in the crypto market. Conversely, if there’s a sudden surge at the end of the day, reducing your position in advance is often wise, as a pullback the next day is likely. Very low volume accompanied by small positive candles usually indicates a bottoming phase, but if volume increases without price rising, beware of signs of distribution. For mainstream coins, a large spike followed by a decline can be particularly damaging.

**Moving average trading is very friendly to beginners.** For short-term trading, focus on the 5-day moving average: hold as long as it remains intact, and exit immediately if it breaks. For medium-term, refer to the 20-day moving average, maintaining the same logic. Don’t fight the market; following the trend is the key to longevity.

**Stop-loss and take-profit are hard rules.** If you incur a loss, cut your losses immediately. Don’t rely on adding to your position to turn a short-term trade into a long-term hold. When you make profits, don’t be greedy—adjust your take-profit levels accordingly. For example, take 5% profit after a 20% gain, or exit after a 10% profit on a 30% gain. Only then can you truly preserve your profits.

**The logic for selecting coins during a market crash.** When prices are moving sideways, it indicates that funds are supporting the market, so holding is fine. But if prices rebound strongly after a dip, it’s often the main players shaking out weak hands. The next systemic decline, however, is the real buying opportunity.

**Chasing the market and panic selling lead to losses.** The best buying opportunities occur during pullbacks, not when emotions are high. When a sharp decline happens, don’t panic; wait for support levels to confirm before making decisions. If support breaks, sell; if not, wait for a rebound.

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tx_pending_forever

· 01-09 17:24

You're really not wrong. I've been tricked into adding positions many times, and now whenever I see a coin that's trapped, I just cut my position and run, no more topping up. The 5-day moving average strategy really works; a while ago, I used it to dodge several pullbacks. Take profit and stop loss are really basic skills. Nine out of ten friends who lose money just can't bear to stop loss, and then they get deeper and deeper. The most unfair part is cutting positions in the early session. Every day there's a V reversal, which makes me afraid to act in the mornings now. Chasing highs and selling lows is just helping others lift the market. Smart traders only buy back during pullbacks. As long as the support level isn't broken, I hold on; only when it's broken do I exit. Simple and straightforward wins. This logic is almost the same as my real trading experience. The key is to have patience. I didn't pay much attention to sideways consolidation before, but now I started to notice signs. It really helps to see the clues. Make 20% profit, give back 5%, and then exit—that sounds simple, but actually doing it is really hard. Human nature is too greedy.

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DegenApeSurfer

· 01-09 01:51

Everyone's right, but execution is too difficult. Every time I see these rules, I get slapped in the face in no time. I have deep experience with adding positions. When a coin is trapped, I just can't resist adding more, and eventually I get deeper and deeper. Taking profits and cutting losses is the most tormenting. When I make money, I want to earn a little more, but in the end, I give it all back. The moving average trick is indeed simple and crude, but it's still easy to be shaken out at critical points. The key is to get rid of that greed, or all the experience in the world is useless.

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ColdWalletGuardian

· 01-07 01:53

Honestly, the set of averaging down strategies I’ve used the most have now been changed early on. That’s right, taking profits and cutting losses test your mentality the most; greed is the root of losing money. I’ve used this moving average method for half a year, and it’s definitely more reliable than random trading. Chasing the rise and selling the dip is really a rite of passage for beginners; it’s a bloody lesson. The sideways consolidation that protected the market really hit home; I used to always hold on and get shaken out. The deep V reversal thing—early in the session, all the small investors got chopped up. Making 30% profit and then running—I've come to believe this now; before, I was just greedy to the point of vomiting. The support level thing is spot on; if it can’t break through, just wait for the rebound—simple and straightforward.

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GasGasGasBro

· 01-07 01:51

You're absolutely right. I lost a lot of money because I didn't stick to the rules when adding to my position. I'm now strictly adhering to stop-profit and stop-loss strategies. Greed was the cause of my previous losses. The moving averages are indeed useful; they are much more reliable than guessing blindly. Honestly, adding to positions is a trap; many people have fallen into this pit. People chasing gains and selling in panic are still cutting losses; they deserve it. Details in the order book are really easy to overlook. Only after losing money do you understand. I've seen too many deep V reversals; don't rush to sell during the early trading hours.

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LiquidityWhisperer

· 01-07 01:51

Really speaking, I was trapped because I didn't set a stop-loss. Now, whenever I see a chance to add positions, I feel nauseous. The moving average strategy really works; when the 5-day moving average breaks, I immediately exit, saving myself a lot of trouble. The late-day surge is really a trap. Once you've been caught, you never dare to take that risk again. Profit-taking and stop-loss are not just about knowing them; you have to actually execute them. Most people can't do it. Chasing rallies and selling dips is a money-losing machine. Everyone around me is losing money this way. A deep V reversal is well explained. Those who cut losses in the morning regret it, but there are indeed false reversals. Confirming support levels is so crucial. Too many people sell prematurely without waiting.

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DYORMaster

· 01-07 01:30

Well said, but I'm just afraid that beginners won't listen. All the brothers around me who chase gains and sell at losses every day have lost everything, even their underwear. I have deep experience with adding and averaging down. Those who dare to stubbornly fight against being trapped are all in the hospital. The 5-day moving average strategy is indeed excellent—simple, straightforward, and effective. It's much more reliable than those flashy indicators. Take profit and stop loss are the easiest to overlook. You make 20% and still want to wait for 30%. As a result, a sudden plunge wipes it all out. That’s so damn heartbreaking.

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