In ten years of entering the circle, I have seen too many people make a fortune in the market, and even more who are completely out after a wave of decline. What is the difference? It's not prediction ability, nor luck, but whether you have established a set of effective trading discipline.

I still remember when I first entered this circle in 2015, I had 200,000 yuan of capital and was full of confidence. At that time, I thought I had done enough homework, studied various charts, and had a good grasp of the market. But reality gave me a loud slap — three years later, my account was left with only 10,000 yuan. How painful was that period? The ridicule from relatives and friends, the disappointment in my family’s eyes — all became the deepest pain in my heart. But giving up was never my choice. I restarted with that remaining 10,000 yuan, making every decision with stricter discipline and a calmer mind. Another three years passed, and the account grew to 25.6 million.

There’s nothing magical about this process. The key is that I gradually understood a principle: the power of rules far exceeds prediction, and discipline can defeat luck. Today, I want to share six core rules summarized from these ten years, hoping to help you avoid the pitfalls I’ve walked through.

**First: Mindset always comes first, investing with idle funds is the essential bottom line**

After experiencing a huge loss, I realized a saying: "Three parts depend on skill, seven parts depend on mindset." This is not an exaggeration.

Investing with idle money provides a psychological bottom line. Even if you are temporarily trapped or have small floating losses, your judgment won’t collapse, and your decisions won’t go off track. But if you are using borrowed money or leverage, that mental stress is completely different. I have seen too many people forced to liquidate because they used borrowed funds or high leverage, losing everything. At that time, they simply couldn’t think calmly — panic and regret took over.

The volatility in the crypto market is well known. No one can accurately predict every turn. So don’t push yourself into a desperate situation where "failure means death." Preserve your principal, keep the green mountains, and you won’t fear running out of firewood. Margin and leverage trading are ultimately zero-sum games, requiring far more skill and mental resilience than beginners possess. If you haven’t even mastered spot trading, expecting to survive in the fierce contract market is basically unrealistic.

**Second: Technical analysis is necessary, but don’t rely on it excessively**

I often hear people say: "Technical indicators are useless, all lies." Others say: "Crypto trading is all about K-line charts, technical indicators are everything." Both extremes are wrong.

Technical indicators are not omnipotent, but traders who ignore them are also unthinkable. After years of trial and error, I’ve developed a relatively simple and effective indicator system, centered on the combination of Bollinger Bands and moving averages.

Bollinger Bands act like a dynamic channel, helping you identify overbought and oversold areas. When the price touches the upper band, it usually indicates a short-term overextension and a risk of correction; when it hits the lower band, it may have already fallen too far. Combining this with moving averages to observe trend direction, these tools can help you filter out a lot of noise and seize real trading opportunities.

But all of this presupposes that you truly practice repeatedly, constantly refining in live trading, rather than just watching a few tutorials and thinking you’ve mastered it. Technical analysis is fundamentally a game of probabilities; there are no absolute perfect signals. Those claiming "my method has over 90% win rate" are mostly fooling themselves or living in backtests.

The real wisdom is to acknowledge the market’s complexity, use multiple dimensions of information to verify your judgment, and then execute your trading plan with conviction — even if sometimes the plan is wrong. Recognize mistakes, improve next time, and that’s enough.