I have fallen many times and paid a lot of tuition fees. Over the years in the crypto world, I have experienced life and death, and finally understood some principles. Today, I want to share 7 trading rules that I have earned with real money, hoping to help you avoid obvious pitfalls.

**Rule 1: Capital allocation is the line between life and death**

Many people enter the market with full positions, get excited after making a little profit, and panic after a small loss. This way, they can't survive long. My approach is to divide the principal into 5 parts, and only use one part at a time to build positions. Set stop-loss levels in advance and stick to them. Even if you misjudge the market, losses stay within controllable limits. When it's time to take profits, don't be greedy—take enough profits and exit.

**Rule 2: Go with the flow, don't go against the current**

When a decline rebounds, it's often a trap set by the main players. True entry opportunities are usually hidden in pullbacks within an uptrend. Compared to bottom-fishing and gambling on luck, low-buying success rates are much higher, and the psychological pressure is lower.

**Rule 3: Stay away from assets with short-term crazy surges**

Whether it's mainstream coins or small tokens, if there's an outrageous short-term surge, expect a correction soon. Signs of stagnation at high levels indicate a pullback is imminent. If you see this and still rush in to buy, you're gambling with your emotions.

**Rule 4: Use MACD to judge the rhythm**

MACD can sometimes save your life. When DIF and DEA form a golden cross below the zero line, and are about to or have already crossed the zero line, it's a relatively safe entry signal. Conversely, when a death cross appears above the zero line, reduce your position without hesitation. No need to guess blindly—indicators speak for themselves.

**Rule 5: Volume is the most honest indicator**

After a long consolidation at low levels, a sudden surge in volume breaking through resistance must be watched closely. Conversely, if volume accumulates at high levels but price fails to rise, it's time to leave. In short, volume is the pulse of crypto trading; if you can't read it, any operation is just gambling and will likely lead to losses.

**Rule 6: Only profit when the trend is upward**

Short cycles are easily washed out, so look at different levels. When short-term K-line is upward, do short-term swing trading. When mid-term is rising, participate in mid-term trends. Only when the long-term trend is upward should you wait for the real main rally. Following the upward trend is both stable and stress-free, without overthinking predictions.

**Rule 7: Weekly review is a must**

Spend some time every weekend reviewing your holdings, checking if your logic still holds, and whether the weekly trend matches your initial judgment. If discrepancies are found, adjust your strategy promptly. Those who passively follow the crowd often end up losing the most.

Crypto markets change daily, but trading rules are fixed. The real winners are not lucky, but those with systems and discipline. Implement these 7 rules diligently, reduce impulsiveness, and increase discipline. Losses will naturally decrease, and stable profits will not be far away.

The next cycle will come again. Those who can stand firm will be the ones who protect their principal and are not driven by emotions.