Trading contracts, the biggest fear isn't market fluctuations but your own greed and panic. I have survived countless liquidations by sticking to these 6 non-negotiable bottom lines. Follow them, and you can survive; violate even one, and you might be out.

**Never add to a losing position**

This is the first and most important rule. Many people try to reduce their average cost by adding to a losing position, but they end up digging themselves deeper. My current principle is: as soon as I see a floating loss, I stop entering new trades. Even if I see an opportunity, I ask myself—"If I am currently flat, would I still enter at this price?" If the answer is no, I exit immediately or reduce the position. Averaging down on a loss is like inviting death.

**Market patterns exist; don’t be fooled by illusions**

The sharp drop in the early session looks frightening, but the crypto market often shows deep V-shaped rebounds. Rushing to cut losses might cause you to sell at the bottom. Conversely, a sudden rally at the end of the session should be approached with caution—most of the time, it’s a trap to lure more buyers, and a correction follows the next day. When you see very small bullish candles with almost no volume, but the price is slightly rising, that’s usually a sign of a bottom, and there will be opportunities to profit later.

**Use two moving averages for short- and medium-term**

Forget complicated indicators; just focus on the 5-day and 20-day moving averages: if the 5-day MA hasn’t broken below, short-term trading is still viable; if the 20-day MA remains intact, medium-term is more stable. Once it breaks, don’t fall in love—exit immediately.

**Discipline in stop-loss and take-profit**

This is key to survival. If your loss exceeds 10%, cut your position without hesitation. After winning, it’s even more important to stick to your rules—when profits exceed 20%, take a 5% retracement and exit; when profits exceed 30%, a 10% retracement means closing everything. Crypto profits come quickly, but the real skill is in holding onto them. Greed is the biggest killer.

**Follow these rules, not to get rich quickly, but to stay alive**

Consistent profits are harder and more valuable than getting rich overnight. I’ve seen too many people get out due to greed—often, it’s not missing an opportunity that’s the biggest regret, but the fact that they could have survived longer.