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A new crypto enthusiast recently came knocking, and the beginning was a classic rookie mistake—trading based on emotions. The result? The more they lost, the more anxious they became; the more anxious, the more chaotic their trades. Their account was plummeting like a roller coaster.
I asked him one question: "Are you trying to rely on feelings and luck, or do you want to make steady profits according to rules?"
He honestly replied: "I want to make money, but I really don’t know how to do it."
I didn’t teach him any advanced technical analysis; I simply wrote down my 6 ironclad trading rules for him to follow step by step. The result? Within a month, he stopped losing money, and gradually started on a stable profit track.
These 6 rules are essentially the survival principles for traders. It’s no mistake for beginners to copy these:
**Rule 1: Treat Take Profit and Stop Loss as Faith**
Many people enter the market with grand ambitions, but once the market moves against them, they start fantasizing and become overly optimistic. Opportunities in the crypto world are always there, but your capital is only one. Setting proper take profit and stop loss is like installing a fuse for your account. Exit when it’s time, don’t let greed cause you to give back all your gains.
**Rule 2: Control Your Trading Frequency, from Frequent to Precise**
Reduce your trades from over ten times a day to just 1-3 trades daily. How big is this change? First, trading fees drop significantly; second, losses caused by reckless trading disappear. Quality always beats quantity, especially in trading.
**Rule 3: When the Market Is Unclear, Stay Out and Wait**
Missing out can be regrettable, but that regret is far less painful than real losses. Instead of forcing trades in a foggy market, it’s better to observe and wait. Trading only what you understand is an achievement in itself.
**Rule 4: Progress Steadily, Don’t Expect to Skyrocket Overnight**
Some people enter the market dreaming of tenfold returns, but often they end up blowing up their accounts and starting over. Begin by earning ten units per trade, then slowly find your rhythm. This kind of growth curve is sustainable. When your mindset is stable, the power of compound gains will naturally manifest.
**Rule 5: Light Positions Are the Key to Longevity**
Accounts that get wiped out by a sudden reversal are often the result of heavy or full-position trading. In the highly volatile crypto market, staying alive is more important than quick profits. Light positions give you room to make mistakes and the chance to continue.
**Rule 6: Knowing the Rules and Sticking to Them Are Two Different Things**
These 6 rules sound simple, but more than 80% of retail traders can’t stick to them for a month. Emotions are too easily triggered, defeating rational plans. The reason they succeed is because they don’t give up on this system midway.
Ultimately, new traders don’t need to master advanced skills to stand firm in the crypto space. Master these basic rules, execute them well, and you’re already ahead of the game. There are no shortcuts in trading—only discipline and the accumulation of time.