There are always newcomers asking me: Why am I still losing after half a year of trading? My answer often surprises people—it’s not about whether the market is good or bad, but how deep your understanding of this market truly is.

Unknowingly, I have been navigating the crypto world for eight years. I’ve seen too many passionate newcomers enter the market and then disappear silently. I’ve also experienced nights of liquidation, with sweaty palms and sleepless nights etched into my memory.

But what happened afterward? It was through repeated failures and reflections that I developed a methodology to survive in this market. Today, I want to share these 10 rules—not secrets to overnight riches, but real survival principles that can help you last longer.

**Small capital players shouldn’t expect to become rich overnight**

If you only have two or three ten-thousand-yuan, don’t think about frequent trading every day. Honestly, there are only a few truly worthwhile opportunities each year. Catching a major upward wave yields more profit than daily tinkering. I’ve seen too many people with pitiful capital desperately trying to double their holdings quickly, only to see their accounts shrink further. The rules of the game in crypto are simple: it’s not about who trades most often, but who survives the longest.

**Demo trading is more valuable than any masterclass**

The cost of trial and error with real money is too high—one mistake can wipe you out instantly. When I first started trading contracts, I practiced on a demo account for a whole month before risking real funds. Don’t feel ashamed; smart traders first become experts in a safe environment before entering the market.

**When good news is exhausted, it’s a signal of a reversal**

I’ve verified this logic countless times: when good news finally materializes, it’s often the time to consider reducing your position. Many people have the bad habit of not waiting for confirmation, and once the news is confirmed, they rush to chase the rally, only to get caught at the top. The most ironic part of the market is this—once the expectation gap disappears, the rally ends.

**Don’t be hostage to your holdings**

The coins you hold now may not be your best trading opportunities next. Too many cling to a coin just because “I already hold it,” which is the worst reason. If you had to choose again now, you might not buy it. So why keep holding? Cutting losses timely and switching tracks is much smarter than stubbornness.

**Trading psychology is more deadly than trading skills**

How much you can earn depends 80% on your mindset. When your account is down 20%, will you panic and sell? When a position is about to double, can you resist the urge to chase? I’ve seen highly skilled traders lose everything because of poor psychology, and I’ve also seen simple-minded traders thrive thanks to strong mental resilience.

**Markets have cycles, and so should your learning**

In a bull market, everyone is making money, and it’s hard to tell if you truly have the skill. Bear markets are the sharpening stones. If you can keep studying, learning, and testing strategies with small amounts during tough times, you’ll be ready to strike accurately when the bull returns. Conversely, those who only follow the trend in bull markets will become martyrs when the bear arrives.

**Risk management isn’t conservatism; it’s survival**

Every trade should have a clear maximum loss limit. Don’t set your stop-loss too far just because the opportunity looks “big.” A single liquidation can wipe out months of gains—why take that risk? My standard is simple: never lose more than 2% of my total capital on a single trade. Even if I make ten wrong calls in a row, I won’t be wiped out.

**Combine technical and fundamental analysis**

Relying solely on charts can lead to being hit by flash crashes; only trusting news can lead to being chopped up by market manipulators. True experts pay attention to macro cycles, policy trends, as well as candlestick patterns and volume changes. Walking on two legs makes you more stable.

**Trading records are your best teachers**

Record every opening and closing. Why did this trade make money? Why did that one lose? Consistently reviewing your trades helps you identify your patterns. Every decision I make today is based on reflections from thousands of real trades over the past eight years.

**Surviving is a hundred times more important than getting rich overnight**

There are many stories of people soaring to the sky in crypto, and some do make quick fortunes. But do you know? Most who get rich overnight end up losing everything just as fast. I admire traders who can stay steady for five or ten years—they might only earn 50% a year, but over ten years, that’s tenfold. The power of compound interest ultimately favors those who last.

Finally, I want to say: the crypto market is always a place of opportunity and risk. The money you lose isn’t because the market is bad, but because your understanding at the time wasn’t enough. The only way to improve your cognition is to keep learning, testing, and reflecting. Don’t rush for quick success—walk steadily forward, and you’ll go the farthest.