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After years of navigating the crypto world, the most common question I get is—how can beginners avoid getting "rekt"? I’ve summarized my lessons learned into seven practical rules, each earned through real money and experience.
**Sideways Market, Stay Put; Wait for Clear Trends Before Acting**
This is the first lesson and also the easiest to mess up. When the market has no clear direction and prices are oscillating within a range, rushing to trade is like stepping into a trap. When the trend is unclear, moving around randomly is like thrashing in a swamp—the more you move, the deeper you sink. The right time to act is when candlesticks show a definite direction and volume confirms the move. That’s when the opportunity is most solid.
**Hot Trends Come Fast, Go Fast—Don’t Get Attached**
Any coin that suddenly explodes will spark fantasies. But hype is just a passing wind—it will stop. Smart traders get out before the wind dies down. This doesn’t mean avoiding hot trends altogether, but maintaining flexibility in your positions. Never be the person holding the last bag—that’s the way to stay in the market long-term.
**Gap Up with Volume Is a Signal of Main Player Activation—Hold Tight, Don’t Rush**
A gap up accompanied by a significant increase in volume? That usually indicates the main force is launching. Many rush to take profits after a big rise, missing out on subsequent moves. The correct approach is to wait for a pullback confirmation or trend continuation, allowing profits to run fully.
**Watch for Single-Day Surge; If It Remains Strong at Close, Consider Reducing Positions**
A massive bullish candle can be exciting, but it’s often a trap set by the main players to shake out weak hands. When a candle surges, pay close attention to the closing action. If the close remains strong, it shows buyers are fierce—consider taking some profits in stages. Remember: profits in your pocket are profits earned.
**A Doji or Bearish Candle Near Moving Averages Is a Low-Buy Opportunity; Breakouts Are for Taking Profits**
Short-term timing is crucial. A bearish candle near the moving average or support level often signals a good low-entry point. Conversely, a bullish candle breaking resistance is a sign to gradually lock in profits. Be decisive—don’t hesitate.
**Don’t Guess Tops, Don’t Catch Bottoms, Wait During Sideways**
Chasing highs or bottom-fishing during dips are the most expensive lessons in the market. The market reacts faster than you do—trying to beat it is a race you’ll lose. Instead of frequent trading, learn to be patient during sideways consolidation. That patience itself is your advantage over other retail traders.
**Start Small → Add on Positions → Never Fully Invest All at Once**
The most important risk management rule: don’t try to put all your chips in at once. Start with a small position to test the waters. If the trend aligns with your expectations, gradually add. This approach helps you avoid black swan risks and keeps you in the game longer, earning more steadily.
Trading has no shortcuts or fairy tales. It’s about disciplined execution step by step. These seven rules may seem simple, but few can truly stick to them. Many fail because they understand the principles but can’t break old habits. I hope these insights help you avoid detours, and you’re welcome to share your trading experiences on the Gate Exchange Plaza.