2026-01-03 02:25:53

Honestly, the dividing line between making money and losing money in the crypto world is often not technology, but mindset. Over the years of navigating this space, I’ve summarized a few practical rules that have helped me withstand countless market adjustments. I’d like to share them with everyone.

**Rule One: Overcome the Innate Weaknesses of Retail Investors**

Have you noticed that the common flaw among retail investors is "hesitant to sell after a loss, eager to sell after a gain"? What happens then? They get trapped during a sharp decline and sell too early during a surge. This isn’t because you’re not smart enough; it’s human nature itself standing against profits.

I later set two strict rules: lock in a portion when floating profits reach 10%, don’t be afraid to sell early—what you’ve already secured is real money; if losses exceed 5%, decisively exit, even if it means taking a loss. Many people think this approach is too mechanical, but it’s precisely this mechanical discipline that has helped me avoid multiple liquidation traps. Living longer in this market is more valuable than making quick profits.

**Rule Two: Learn to Read the Secrets of Trading Volume**

Candlestick charts can lie, but trading volume is hard to fake. I’ve used volume-price analysis to catch many bottom opportunities. For example, if volume decreases while making new highs, it often indicates less selling pressure, deep accumulation by the main players, and a high probability of continued upward movement. If volume increases but the price stalls, that’s a sign of distribution—time to exit without hesitation. Another surefire signal: when the price breaks above the 20-day moving average and then pulls back on lower volume, it’s almost a gift—just jump in decisively.

Instead of constantly focusing on lagging indicators like MACD and KDJ, it’s better to pay attention to the relationship between volume and price—that’s the true market breathing.

**Rule Three: Position Management Determines How Long You Can Survive**

Those with less capital must control greed even more. I’ve seen too many traders buy into a dozen different coins at once, only to be wiped out during a market correction. The real experts do this: concentrate their firepower for a decisive strike, while leaving enough ammunition to handle unexpected situations. Don’t aim to profit from every wave; aim to survive until the next opportunity. In the crypto market, survival is winning.

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LiquidityWizard

· 01-05 15:19

actually the 5% stop loss thing is mathematically sound but empirically? most retail traders can't execute it psychologically... statistically significant correlation between rule-following and not getting liquidated, which checks out

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DoomCanister

· 01-04 07:34

Oh, I’ve been burned by that 10% lock-up scheme before, and I only realized later that it’s really reliable. That’s right, retail investors are always greedy. I used to lose money and was reluctant to sell, and when I made a profit, I was afraid it would run away. What happened? Both ends got hammered. Volume and price, volume and price—indeed, they are more effective than those flashy indicators. I’ve seen cases where shrinking volume led to new highs and doubled directly. Position management is truly the key; someone going all-in on a single trade won’t survive the next bear market. Mindset is the real king. No matter how good your skills are, an unstable mindset is useless.

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SudoRm-RfWallet/

· 01-03 02:51

Well... everything makes sense, but it's just too hard to execute, and I still feel heartbroken about cutting losses. The volume and price analysis are indeed useful, but I always get soft when I revisit the levels, and I end up getting trapped. Position management is the most painful. I currently hold over twenty different coins, and whenever they drop, they all drop significantly. Living to make money sounds simple, but actually doing it is deadly. Lock in 10%? Feels like I missed out on many gains, brother. Cut losses at 5%? That requires such strong mental resilience, I can't do it. It's well said, but who can stay steady when the market is really moving? I've used the volume theory before; it does improve win rate a bit, but I still get fooled often. It seems your three rules boil down to two words: restraint. Don't be sneaky and develop slowly. If you could really do that, we'd all be millionaires.

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AirdropJunkie

· 01-03 02:50

That's right, I just can't stick to the 10% and 5% dead rules, always thinking about waiting a bit longer... and guess what, a single limit-down wiped everything out. Mindset really is the key; no matter how good your skills are, it's useless. Greed is the real culprit behind liquidation. I've heard the most about volume and price, but I observe the least. I still need to put in the effort to study. Position management is truly crucial. My friends who experienced total losses can only complain about the market now. I've tried investing in a dozen or so coins at once, but I realized too late. Living longer is more important than earning quickly; this really hit me deep in my heart.

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LiquidatorFlash

· 01-03 02:50

I agree with the strict rule of a 5% stop loss, but in actual operation, the moment the threshold is triggered often causes psychological collapse. To put it simply, it's deadly to execute.

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LiquidityNinja

· 01-03 02:43

10% then run, 5% then cut, listening to the mechanical is actually the truth --- The combination of volume and price ratios makes any moving average reliable; candlestick charts are indeed masters at storytelling --- Ultimately, living is more important than earning quickly; I deeply feel this --- Focusing firepower is not greed, but the only way to survive in this market --- The biggest enemy of retail investors is their own restless heart --- I have indeed entered a few times when volume shrank to new highs; just wait, and it will come --- Many people overlook position management; in the end, they are buried by their own greed

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TokenTaxonomist

· 01-03 02:36

actually, per my analysis... the 5% stop-loss is taxonomically incorrect for volatile alts. data suggests you'd get liquidated faster than a failed fork. ngl though, the position sizing framework checks out statistically

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BlockchainNewbie

· 01-03 02:31

That's right, mindset can really determine everything. I'm one of those who died because of greed haha --- Lock in 10%? Why am I still waiting for 15%? Looks like I'm about to get trapped again --- I need to study the combination of volume and price better; before, I was just buying randomly based on feelings --- That part about position management hit home. I once went all-in on more than ten coins at once, and then there was no turning back --- Mechanical execution is stronger than anything else, and I lose much less than those who act on impulse --- "Only by staying alive can you win"—I want to get that tattooed, it's so damn touching --- Is it really impossible to sell at a 10% unrealized profit without missing out? I always feel there's still hope later --- The key is execution. I understand the principles, but when it comes to critical moments, I still hesitate to cut losses --- I can't do the 5% cut-loss rule; every time I want to wait a bit longer, and the more I wait, the deeper I get --- The combination of volume and price sounds simple, but in actual operation, it's still easy to get confused

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