Over the past few years in the crypto space, I've seen too many people hit rock bottom. I was once one of them—hot-headed and reckless, losing thousands in just a week. Only later did I realize that the truly successful traders in the crypto world aren’t lucky; they follow a set of principles.

The harsh reality is: most beginners’ trading logic is just watching others showcase their gains. When they see a surge, they jump in impulsively. It feels great for a few days, but once a correction hits, panic sets in. After losing money, they rush to buy more, trying to recover everything in one shot. The result? They dig themselves deeper and end up trapped. I’ve seen countless examples like this around me.

The market in 2026 will move even faster, with volatility still being terrifying. To survive longer, these trading principles must be ingrained in your mind.

**Rule 1: Have a plan before trading**
It sounds like old advice, but very few actually follow it. Before buying, ask yourself three questions: Why is this coin worth buying? What’s the maximum I can lose? At what price should I take profits and exit?

For example, with ETH: I plan to buy at $3050, because it’s a strong support level, supported by the upcoming upgrade catalyst. I’ll take profits at $3392 and set a stop-loss at $2900. Once these numbers are set, I follow the plan. It makes the mindset much calmer. Many liquidation stories happen because traders don’t have this plan—once the price moves, they get emotionally driven and follow the market blindly.

**Rule 2: Limit risk on a single trade to within 2% of your capital**
This is a strict rule that seasoned traders abide by. For a $10,000 capital, risking at most $200 per trade. It may seem like a small loss, but what’s the benefit? Even if your judgment is completely wrong, you won’t suffer serious damage and can continue trading.

The most painful lesson is that beginners often go all-in on one coin. Besides Bitcoin, which might still be somewhat trustworthy, other coins like ETH don’t deserve such reckless bets. Truly, those who jump this pit often regret it later.

**Rule 3: Stay calm after a loss, don’t revenge trade**
I’ve suffered the biggest losses from this. Once, I lost $50 and immediately thought I had to make it back quickly. I ended up recklessly buying three altcoins and lost over $300. That moment made me realize: after a loss, it’s easy to lose your mind.

The right approach is to stop trading after a loss, take a cooling-off day. Calm your emotions first, and give yourself time to review why you lost. The urge to recover quickly can impair your judgment, leading you into deeper trouble.