Having entered the crypto market over a decade ago, I went from asset zeroing out to supporting my family with this career. Along the way, my deepest realization is: the crypto world is far from a casino; it’s a journey of testing human nature. Those who last long are often not the smartest, but those who follow certain simple rules. Today, I want to share ten trading iron laws I’ve discovered. They may not be the most brilliant strategies, but they are effective ways to protect your capital and extend your lifecycle.

**Becoming More Cautious During Continuous Declines at High Levels**

When strong coins keep falling at high levels, panic often spreads in the market. But my approach is usually the opposite—that’s actually a key entry point. The reason is straightforward: genuine big players don’t offload their holdings through slow, gradual declines; they often do so to shake out weak hands, using sustained small dips to force retail investors to sell. Entering during this phase costs much less than chasing a rally.

**The Two-Day Uptrend Rule**

There’s a saying in crypto: "Don’t chase after three consecutive rises, don’t press during four consecutive drops." It’s not unfounded. Experience tells me that after two days of continuous gains, the probability of a short-term correction increases significantly. My habit is to sell half of my position to lock in profits, and set a trailing stop for the rest. Profits are only truly yours once realized; greed for the third green candle often results in being trapped.

**Inertia After a Sharp Rise**

Coins that increase more than 7% in a single day usually don’t lose their short-term momentum immediately. But here’s a key volume indicator—if the price breaks through previous highs with high volume, you can hold; if it’s a volume-dried surge, it’s time to exit decisively. I’ve developed the habit of observing the half-hour market opening the next day. If volume doesn’t support the move, I’ll close my position immediately, leaving no room for second-guessing.

**Patience in a Bull Market**

Many people get caught at the end of a big bull run. My principle is never to chase highs but to patiently wait for a correction to key technical support levels, such as the 30-day moving average or previous support zones. Take ORDI as an example: when it retraced to the 30-day line and stabilized, I gradually added to my position and ultimately gained a 50% increase. The cost of waiting is much lower than the risk of being caught chasing and getting trapped.

**Time Cost in Volatile Markets**

In crypto, time equals opportunity cost. If a coin’s volatility remains below 5% for three days in a row, the profit opportunity is limited. I give it some more observation time, but if there’s no clear breakout signal, I consider switching to a different asset and reallocating funds to more active projects. The crypto rhythm is fast; being stuck in sideways coins means missing other opportunities.

**Risk Identification in a Bull Market**

Bull markets can cause complacency, but the greatest danger is actually at this stage. I regularly review the technicals of my holdings. Once obvious top signals appear—such as shrinking volume or support levels breaking—I cut my positions decisively. Greed for an extra 5% profit often leads to losing everything you’ve gained.

**Bottom Confirmation Logic**

Watching for bottoms and bottom-fishing are two different things. True bottoms usually require multiple tests of support levels before confirmation. I don’t gamble on a single rebound; instead, I wait for two or three successful bottom-fishing attempts near key support zones before adding to my position. This approach results in a lower average cost and less psychological pressure.

**Sniffing Out Hot Sector Rotations**

Crypto market hot spots rotate quickly. The earliest movers often earn the most. But this isn’t an encouragement to blindly chase trends; it’s about positioning early when a hot sector still has momentum but hasn’t been fully hyped. My method is to monitor discussion volume in communities, on-chain activity data, and news heat. When all three start heating up but prices haven’t yet soared, I step in.

**Final Mental Defense**

Over ten years, I’ve seen too many traders go bankrupt due to emotional swings. Setting stop-losses, planning target profits, and strictly executing plans may sound old-fashioned, but they are the most effective. Before each trade, I clarify: how much am I willing to lose? What profit target will I exit at? Just follow the plan—no explanations needed, no emotional interference.

**Continuous Learning and Review**

The last point is the easiest to overlook—regularly review your trading decisions. Why did I make a profit on this one, and lose on that? Was it luck or strategy? Keep a record of key decisions each month and see if you’re improving. The market rewards those who learn from their mistakes.

The crypto world is never short of stories of sudden wealth or tragic bankruptcies. The difference lies in whether you’re gambling or acting according to rules. These ten iron laws won’t guarantee you profits, but they can maximize your chances of avoiding quick exit. Survive long enough, and you’ll have the opportunity to witness a real bull market.