Many newcomers in the crypto space share the same frustration—why is it so easy for others to make money, while I always get trapped? Actually, it’s not about luck, but about not mastering the underlying logic of trading. Over the years of navigating the crypto world, I’ve summarized 6 truly effective trading rules. If you follow this approach, it can help you avoid most common beginner mistakes.

**Core Rule for Adding Positions**

This is the easiest to overlook. Before adding to your position, ask yourself: if you are in a no-position state, would you still dare to buy at the current price? If the answer is no, then you shouldn’t add. Honestly, many people’s attempts to average down after being trapped often turn from a last resort into the final straw that breaks the camel’s back. The correct approach is to add only when in profit; when trapped, consider reducing your position. Look more at the pressure and support levels on the candlestick charts—this is much more reliable than guessing blindly based on intuition.

**The Secret of Market Rhythm**

Don’t rush to sell during a sharp dip in the early session; a deep V-shaped move within the day is quite common. But if the price continues to rise towards the close, be cautious—reducing your position promptly is wiser, as a pullback is highly probable the next day. Also, pay attention: very low volume combined with small positive candles often signals a bottom, but if volume increases without price rising, beware—this usually indicates the main force is distributing. After a huge spike followed by a fall, such patterns are especially common among mainstream coins. When you see this, it’s best to exit immediately.

**Simple Moving Average Trading Rules**

Don’t overcomplicate trading. Look at the 5-day moving average for short-term, and rely on the 20-day for mid-term. The key principle is: hold as long as the support isn’t broken; if it breaks, exit immediately. It sounds simple, but execution is what separates profit from loss. Follow the trend, don’t fight the market—only then can you survive longer.

**The Iron Law of Take Profit and Stop Loss**

Losses must be cut immediately—there’s no room for debate. Many tragedies happen because traders turn short-term traps into long-term losses by holding onto hope for a rebound. After making a profit, keep raising your take-profit levels to lock in gains. For example, if you gain 20%, sell if it retraces to 5%; if you gain 30%, sell if it retraces 10%. Crypto markets move fast—gains can evaporate quickly, so protecting profits is the biggest way to avoid losses.

**Identifying Opportunities During a Crash**

When the market crashes heavily, observe how your holdings perform. If they are consolidating sideways, it indicates that funds are supporting the price—this can be a sign to hold. If the price recovers the next day, it’s often the main players shaking out weak hands. Coins that resist falling often become good buying opportunities during subsequent systemic declines—because the market has already tested their strength.

**Chasing Rises and Fearing Drops Causes Losses**

Chasing the high always leads to losses. The real buying opportunities are never at the peak but during pullbacks. When a downtrend occurs, don’t panic and sell immediately; wait for key support levels to confirm before making decisions. If support holds, continue to wait for a rebound; if it breaks, then it’s time to exit for good.

I used to struggle to find patterns in the crypto market, but now I’ve finally found a stable rhythm. These rules are all summarized from practical experience and can help you avoid many unnecessary detours.