6 “Foolish Principles” Help Avoid 90% of Individual Investors' Traps in the Crypto Market

Anyone who has been involved in the crypto market long enough will understand a painful truth: most losses are not due to lack of intelligence, but because of being too smart… in the wrong place. After 8 years observing the market, I have seen all kinds of scenarios: People hear “secret” tips and get rich quickly then disappear. People draw charts all over the screen, stay up until 2–3 a.m., but still get stuck at the top. People constantly change strategies, indicators, coins… but their accounts only go downward. Conversely, I have a close friend in HCM, over 40 years old, affectionately called “leaf sweeper master” by industry insiders. She’s been avoiding trends for 10 years, doesn’t listen to insiders, doesn’t boast profits, just sticks to 6 principles that seem “foolish,” but has turned an initial capital of 120,000U into over 2 million U, owns 4 houses + a private studio + stable income. Her life… more stable than a stablecoin. Below are 6 core principles, which I believe are more valuable than hundreds of technical indicators, especially for beginners. Principle 1: Strong Rise – Slow Adjustment = Big Money Quietly Accumulating Many investors panic when prices surge then start to shake slightly. Seeing a few red candles, they quickly cut losses, while this is actually when big money is gradually entering. Pay attention to rhythm, not candle colors: If the price rises sharplyThen corrects without much depth, over a prolonged period → This is not a weakening market, but erosion of your patience. Big money never accumulates by causing attention. It’s like a buffet: take little by little, quietly and steadily. Principle 2: Shock Drop – Weak Rebound = Funds Are Withdrawing Everyone has tried “catching the bottom”… and many have only caught half the mountain. If the price: Drops quickly and stronglyBut the rebound is very weak, not even a third of the decline → This is not a liquidation, but a abandonment. In this case, “bravely catching the bottom” only makes you the one holding the bag for others to exit. The only discipline: stay out. Principle 3: Large Volume at the Top Doesn’t Guarantee the End of the Wave – Exhausted Liquidity Is the Real Danger A classic mistake: high price + large volume = sell. In reality: Large volume at high levels often means a change of hands, not necessarily the end. Diminishing volume, sideways price movement, weak momentum → real red flags. As long as the market is noisy, it’s not dead. When everything becomes quiet, that’s when you should be cautious. Principle 4: One Explosion at the Bottom Is a Trap – Multiple Explosions Are True Bottoms “Volume at the bottom, then into!” – this phrase causes countless accounts to vaporize. A volume spike: May be a trap to buyMay be weak hands trying to save themselvesDoes not represent market consensus Safer standards: At least 3 consecutive volume increasesEach time, the price does not form a new lower bottom Market bottoms do not appear in a day. They are endured and confirmed over time. Principle 5: You Are Not Trading Charts – You Are Trading Emotions MACD, RSI, Bollinger… are just tools. What truly controls the market is crowd psychology. Volume is the “emotion thermometer”: Increasing volume: excitementDecreasing volume: frustrationSteady increasing volume: forming consensus Many miss the bottom just because “indicators are overbought,” while market sentiment has already shifted. Remember: the market is created by people, not indicators. Principle 6: The “Three No’s” State – The Secret to Surviving the Longest No greed. No fear. No stubbornness. Most losses come from: Refusing to stay outRefusing to wait for conditionsRefusing to take profit when targets are reached My friend can go 2–3 months without trading, just waiting for the right opportunity. And when it comes, she acts decisively – withdraws at the right moment. In crypto, opportunities are always there, but only for those who are alive and have capital. Conclusion 90% of investors lose because: Wanting quick gainsWanting to be smarter than the marketWanting shortcuts But the market does not reward haste. It rewards patience, discipline, and enough “foolishness” to do simple things correctly. The 6 principles above won’t make you rich overnight, but they will prevent you from being eliminated from the game. And in crypto, surviving long enough is the only way to catch the real big wave.