Every day, people ask: how can I survive in the contract market? To be honest, the main reason most people lose money is obvious—no trading system, placing orders purely based on intuition, resulting in being crushed by the market.

My experience might be somewhat instructive. Since officially entering the crypto space at age 28, over these 8 years I have experienced countless liquidations, stepped into various pits, and gradually developed a relatively stable trading logic. From initial bleak assets to now reaching eight figures, every number behind it is a lesson.

These seven core rules I’ve summarized over the years form the foundational framework of trading. They are not some profound theories but are repeatedly validated in actual combat.

**Rule 1: Divide funds into 5 parts for light position trading**

Never go all-in at once. Use only 20% of the total capital for each entry, setting a 10-point stop-loss for each position. What’s the benefit? Losing once only costs 2% of total capital. Even if you make five mistakes, the cumulative loss is only about 10%. It’s impossible to be correct every time; the key is to keep the damage from a single mistake within an acceptable range.

When taking profits, do the opposite—set a take-profit at more than 10 points. This fundamentally prevents the awkward situation of earning profits only to give them back.

**Rule 2: Trade with the trend to improve win rate**

In a declining market, most rebounds are orchestrated by the main players enticing short-sellers to enter. Don’t be fooled. Although pullbacks in an uptrend look risky, they are often the best low-entry points, much more reliable than waiting for the bottom.

**Rule 3: Avoid coins that surge short-term**

Whether it’s mainstream coins or small altcoins, once they experience a crazy rally in the short term, their room for further growth becomes severely limited. When high prices show stagnation, a downturn is basically countdown. Don’t be blinded by the desire for quick profits; such gambler-style entries only accelerate liquidation.

**Rule 4: Practical application of the MACD indicator**

When the DIF and DEA lines form a golden cross below the zero line and effectively break above zero, it’s a relatively solid entry signal. When they form a death cross above zero, it’s wiser to cut positions decisively—don’t cling.

**Rule 5: Volume is the core logic**

A significant volume breakout after sufficient consolidation at a low level is a signal worth paying attention to. Conversely, if high volume appears at a high level but the price stagnates, exit immediately—this indicates the main players are offloading. In crypto trading, volume often explains more than price itself.

**Rule 6: Multi-timeframe trend analysis**

When the 3-day moving average is upward, short-term opportunities are imminent. An upward 30-day moving average indicates a medium-term uptrend. An upward 84-day moving average signals the arrival of a main upward wave. An upward 120-day moving average suggests a friendly long-term trend. The larger the timeframe, the higher the win rate, and the less often you get trapped by time costs.

**Rule 7: Weekly review**

Pull out your position records and revisit why you made those operations. Compare the actual weekly K-line trend with your previous predictions to see if there’s deviation from your original logic. Markets change, and strategies must adapt accordingly. Passively following the trend often ends badly.

All these points boil down to one core idea: trading without a system is gambling. These 7 rules are not secrets but basic common sense validated repeatedly by the market. Using them to constrain your operations can help you avoid some pitfalls and lose less money. The rest depends on your execution.