Rules to Help Small Investors Avoid 90% of Risks & Accelerate Asset Growth

The crypto market is always highly volatile: there is no guide, no insider signals, and just one moment of FOMO or a poorly timed “bottom fishing” attempt can halve your account. For retail investors, capital preservation is even more important than seeking profits. The following set of 10 rules is compiled from the real trading experiences of the trading community, designed to minimize mistakes and improve investment effectiveness.

1. Don’t Fight the Trend: Don’t Try to Catch a Falling Knife, Take Partial Profits on Strong Rallies If an asset keeps dropping through multiple red candles with no reversal signals ((such as a bullish engulfing candle or increasing volume)), absolutely do not rush to “buy the dip.” When an asset surges with two large green candles in a row, take partial profits before continuing to hold with the trend. Core point: → The trend is king—going against it puts you in danger.

2. Avoid Chasing “Green Candles”—Only Act When the Price Has Pulled Back & Stabilized Assets that rise >7% in a single day often correct the next day. Safe entry points usually appear when the price:

• Pulls back to the Fibonacci 0.618 zone, or
• After a correction, a small green candle holds the support level. Benefit: → Significantly reduces “buying the top” risk and helps set clear stop-losses.

3. When Price Breaks All-Time Highs for the First Time—Don’t Chase; Only Enter on a Low-Volume “Retest” Many assets’ first breakout is just a “bull trap” to shake out weak hands. Good entry is when:

• Price pulls back to test the MA20,
• Volume drops at least 30% compared to the previous session. Goal: → Avoid breakout traps, only trade when the market confirms sustainability.

4. If an Asset Moves Sideways for Too Long—Leave to Optimize Time and Capital If an asset consistently:

• Has a range <3% for 3 days,
• Volume is below MA30,
• Fails to break out of the accumulation zone for another 3 days, → Move capital to trending assets. Reason: → Crypto rewards trend followers, not those waiting idly.

5. Lost Support or Broke the Bottom—Exit Immediately, Don’t Hope for a “Return to Shore” If the closing price is more than 1% lower than the previous day’s low, cut your losses immediately. Market reality: Hope is the enemy of discipline. Many small losses become big ones due to hesitation. Principle: → Preserving capital is more important than catching every rally.

6. The “3-5-7 Day” Rule When Price Surges Some bullish patterns follow the rhythm:

• Day 3: Pulls back to MA5 → can take a test buy
• Day 5: If it surges but closes off the high → take partial profits
• Day 7: Waves usually weaken → prioritize exiting Lesson: → Don’t try to “catch the tail of the fish”—the end of the cycle always carries more risk.

7. Observe Price–Volume Correlation to Distinguish Accumulation or Distribution At the bottom: Price rises + volume rises → real money is flowing in At the top: Weak price rise + high volume + long upper wick → distribution signal If:

• Price rises but volume falls → “fake rally,” likely to correct
• Price drops, volume rises → real selling pressure Application: → “No volume confirmation—don’t trust the trend.”

8. Only 4 MAs Are Needed—Avoid Noise & Reduce Monitoring Stress A minimal yet highly effective MA set:

• MA3: Short-term rhythm
• MA30: Mid-term trend
• MA80: Medium-long cycle
• MA120: Market trend indicator (bull/bear) Meaning: → Just trading with these 4 lines is enough to avoid 90% of noise signals.

9. For Sustainable Asset Growth: Focus on Steady Growth, Not x2 or x5 Overnight Reasonable target for retail investors:

• 10–12% monthly growth → enough to triple your account in a year. Method:
• Prioritize spot trading
• Limit or avoid high leverage
• Preserve capital to maintain long-term win rate Truth: → Sustainable wealth requires discipline—not luck.

10. No Signal, No Trade—Discipline Is the Investor’s Backbone No matter how attractive the market is, if:

• No reversal signal
• No clear pattern
• No confirmed trend price zone → Absolutely do not open a position. One wrong trade can erase the profits of 10 good ones. Retail investors survive by avoiding mistakes, not by always being right.

Conclusion The above 10 rules are not a get-rich-quick formula, but a system to help investors avoid serious mistakes, maintain discipline, and achieve sustainable account growth.

• Drop the “gambling” mindset
• Follow the trend
• Respect discipline
• Prioritize capital preservation

Crypto is a game of probabilities—and discipline is every investor’s strongest armor.