I have been in the crypto world for seven years. Looking back to those early years, I was no different from most beginners—buying the dip when prices rose, cutting losses when they fell, full of "insider information," and frequently using leverage. And the result? Three accounts were wiped out completely. The most memorable time was holding a position to the death with full margin, only to get liquidated, leaving only a tiny balance. That period was really tough—watching others share their trades, seeing their profits, and feeling full of doubt: Is this market simply not suitable for me?

It was also during that time that I fully realized one thing—rather than blindly following the trend and operating recklessly, it’s better to develop my own set of rules. Over these seven years, I repeatedly tested and learned from mistakes with real money, finally summarizing nine ironclad trading rules. Using these rules, I grew my account to eight figures in five years. Today, I want to share all these experiences with you, hoping to help you avoid some pitfalls.

**Ironclad Rule 1: The "跌5不跌7" (Drop 5, Don’t Drop 7) Law for Strong Coins**

When a strong coin starts to decline, many rush to buy the dip. But my experience tells me: if the price continues to fall until the 5th day without stabilizing, that bottom may not be the real bottom. The real opportunity appears on the 7th day—if at that point the price begins to stabilize (for example, with a long lower shadow or sideways consolidation on low volume), then on the 8th day, a small position can be tested, and the chances of a rebound are high. I’ve suffered many losses from "buying the dip halfway up the mountain," so now I wait for the market to give clear signals.

**Ironclad Rule 2: Take profits after three consecutive days of rise**

There’s an old saying in crypto: "After three days of rising, a correction is inevitable." I deeply agree with this. As soon as I see a coin rising for three consecutive days, I sell 30% of my position to lock in profits. The remaining part is held depending on the subsequent trend. Greed is truly the biggest enemy of retail investors—early on, I wanted to capture the entire rally, but not only did I miss out on profits, I also gave back what I had earned before.

**Ironclad Rule 3: Don’t rush to buy the dip after a single-day drop over 5%**

Even for the strongest coins, this applies. If a coin drops more than 5% in a single day, it indicates market sentiment has spiraled out of control, and further declines are likely. My approach is to wait 2 to 3 days for the emotions to cool down, then assess if there’s an opportunity. Although this might cause me to miss some short-term rebounds, it helps avoid many unnecessary losses.

**Ironclad Rule 4: Don’t predict the bottom, only trade the reversal**

Newcomers often make the mistake of trying to catch the bottom. Honestly, no one can precisely predict where the bottom is. My current strategy is: regardless of how low the bottom might be, I only enter when I see clear reversal signals. This might mean entering a little higher than the absolute bottom, but the win rate is much higher.

**Ironclad Rule 5: Set stop-loss decisively**

Before entering a trade, decide where your stop-loss will be. Once the price falls below that level, even if you’re optimistic, you should exit decisively. I’ve seen too many people hold on because they think "it will rebound soon," only to get deeper and deeper into the trap. The purpose of a stop-loss is to protect your capital and give yourself a chance to stay in the market.

**Ironclad Rule 6: Reduce positions during high-level consolidation**

When the price oscillates at high levels, I gradually reduce my holdings. This pattern often signals a potential major correction ahead. Instead of waiting for a sharp decline and getting caught, it’s better to proactively exit and preserve profits.

**Ironclad Rule 7: Don’t chase breakouts to new highs**

While breakouts often indicate a new upward trend, I don’t chase immediately at the moment of breakout. I wait for a pullback to the breakout level to confirm support before entering, making the risk more controllable.

**Ironclad Rule 8: Clarify your holding cycle**

Before entering a trade, decide whether it’s a short-term trade, mid-term hold, or long-term investment. Different cycles require different trading logic. I adjust my stop-loss, take-profit, and add-on rules based on my holding period.

**Ironclad Rule 9: Always keep some cash on hand**

Don’t invest all your funds in the market. Keep 20-30% of your capital in cash so you can respond when big opportunities arise. It also helps you stay mentally less tense.

These nine rules may seem simple, but executing them effectively requires strong discipline. In my early years, I lacked this discipline—seeing the market move, I’d change my mind instantly. Over time, I developed the habit of following rules strictly. Looking back now, the biggest losses were almost always caused by violating one of these ironclad rules.

Crypto is hard to make money from, but it’s not impossible. The key is to develop your own trading system and stick to it strictly. I hope these nine rules can inspire you and help you avoid the detours I’ve taken.