After many years of trading contracts, I’ve watched one wave of newcomers enter after another, and I’ve also seen many veterans fall apart over a single thought. I’ve always wondered—where does this difference really come from?

It wasn’t until later that I realized—the technical threshold isn’t as high as it seems. The real dividing line is mindset—between those who can stick to their strategies and those who easily abandon discipline.

Today, I want to share six iron rules of trading that I’ve accumulated over these years. It’s not to boast, but to share the experiences that have saved my accounts. These are solid, practical principles.

**Rule 1: Position size is the lifeline; the direction is secondary**

Don’t think you can turn things around with a full gamble. Stories of margin calls almost always start with full positions. I’ve tested my allocation plan for a long time—50% always kept in observation, 30% used to follow the trend, and the remaining 20% for testing.

What’s the benefit? If you’re wrong, you can still survive. If you’re right, you’ll have the confidence to add. This isn’t conservatism; it’s the prerequisite for longevity.

**Rule 2: Follow the trend like the wind, oppose it like a wall**

Learn to read the market’s temperament. When Bitcoin stays steadily above EMA200, and dips with decreasing volume without breaking support—that’s the time to go long. Conversely, if it breaks below EMA200 with heavy selling—play it safe and go short.

If you can’t see the direction clearly, staying out is the safest choice. It’s worth more than reckless moves.

**Rule 3: Volume reveals the true words of the market makers**

Charts can deceive you, but data doesn’t. A volume breakout is a real breakout; if volume increases but price doesn’t go higher, it’s usually a sign of the main players offloading. If you can’t interpret the data, the wisest move is to stay put.

Better to miss a trade than to get caught in a trap.

**Rule 4: Stop-loss is a trader’s professional ethic**

Every trade must have a stop-loss. This isn’t showing weakness; it’s a professional requirement. My rule is strict—loss per trade cannot exceed 5% of the account.

Think carefully about the purpose of stop-loss: it’s not about admitting defeat, but about using a small loss to give yourself a chance to come back stronger. As long as the account is alive, opportunities are always there.

**Rule 5: Take profits actively**

When floating profits reach 30%, consider reducing your position—don’t be greedy. At 50%, immediately move your stop-loss to break-even—any further profit is free money.

Follow the EMA7 to trail your take-profit, and fully secure the remaining gains. This way, you protect your profits and don’t miss out on the subsequent moves.

**Rule 6: Use small positions to test the waters in uncertain times**

When the market direction is unclear, allocate about 10% of your funds for small tests. Once the trend becomes clearer, add to your position—this is gradual progress. Never go all-in or gamble recklessly.

**Additional practical tips**

The most volatile hour is one hour before the US market opens. Beginners should avoid forcing trades during this period. After winning two trades in a row, cut your third position in half—this helps prevent overconfidence after wins. Two or three trades per day are enough; frequent trading only risks losing control.

**Final words**

Trading contracts ultimately isn’t about IQ; it’s about mindset and execution. Those who can stick to their discipline are the ones who truly earn. Long-term traders often seem boring—they just keep repeating the same dull rules, year after year.

See the true face of the market clearly, follow your discipline, and the next opportunity is right in front of you.