The crypto world has these 4 tips to help you avoid 90% of the pitfalls.

Friends who have just entered the crypto world always think that perpetual contracts are a place to "make quick money," but the result is often entering with full positions and frequent operations, ultimately losing even the principal. As an experienced player who has been through the ups and downs in the crypto world for many years, today I will share 4 core tips. Remember these; they won't guarantee you immediate doubling, but they can help you survive in a brutal market, and "surviving" is the prerequisite for making money.
1. Avoid full and heavy positions, leave room for capital allocation.
Many people make the mistake of thinking that as soon as the price goes up or down, they should go all in aggressively. In fact, this is a very foolish approach! I've seen too many people open positions with all their funds, only to get liquidated by a small fluctuation, leaving them with no chance to recover. In fact, there is only one principle for fund allocation: leave yourself with 3 opportunities to experiment.

For a specific example: If your account has 200,000, first think clearly about the maximum loss you can accept. It is recommended to set the total loss limit at 20% (which is 40,000). Stop once this amount is exceeded. Next, divide this 40,000 into three parts: stop loss after losing 10,000 for the first time, pause and reflect after losing another 10,000 the second time, and allow a maximum loss of 20,000 for the third time. This way, even if the first two judgments are wrong, as long as the third one is right, not only can you break even, but you can also make a profit.
2. Follow the big trend, don’t go against human nature.
Many people like to buy low and sell high, thinking that making profits in a volatile market is very comfortable. But have you noticed that the more an operation aligns with the human nature of being greedy for bargains and afraid of chasing highs, the harder it is to make big money? On the contrary, those trend-based trades that are difficult to stick to are the real money-making opportunities.
The core of trend trading is very simple: in an upward trend, a pullback is an opportunity to enter. For example, if a certain coin is in a clear upward channel, even a violent pullback of 10%-20% shouldn't cause panic. From a probabilistic standpoint, the likelihood of the trend continuing is much greater than that of a reversal. At this time, if you haven't entered the market yet, or if you exited earlier, just patiently wait for the pullback to settle and boldly go long; if you are already holding a position, just withstand the short-term fluctuations and don't get shaken out by the volatility.

Of course, trends shouldn't be judged based on feelings. You can look at the moving averages on daily and weekly charts (for example, MA7, MA30). As long as the moving averages are diverging upwards, it indicates that the trend is still in place.
3. Take profit and stop loss are lifelines; these 3 numbers must be remembered.
I have seen many people clearly make money, but in the end, they lose it back or even end up with a loss. The problem lies in not setting take-profit and stop-loss levels. In fact, as long as you focus on these 3 points, you can ensure long-term profitability.

1. Each stop loss should be less than or equal to 5% of the total capital: for example, if you have 100,000 in principal, the maximum loss per trade should be 5,000, and you should exit without holding on any longer.

2. Whenever the profit exceeds 5% of the total capital: If you earn more than 5000, you can consider partial profit taking, or move the stop loss above the cost line to let the profit run.

3. Total trading win rate greater than 50%: Even if your gains and losses are similar each time, as long as you win 6 out of 10 trades, you will make a profit in the long run.
4. Frequent trading is the root of losses; sometimes, not trading is also a form of trading.
Bitcoin is traded 24/7, and many newcomers can't help but make trades while watching the market, opening five or six positions a day, resulting in over a hundred trades in a month. Those who walk by the river often get their shoes wet; the more trades you make, the higher the chance of mistakes. Once a trade goes wrong, it's easy for your mindset to change, leading to revenge trading. Trading against the trend and heavily investing to recover losses often results in even bigger losses.
My suggestion is to open a maximum of 2-3 trades a day and set a good plan. This is not a money-making tool but a battlefield that tests mentality, discipline, and skills. Don't think about making a big profit as soon as you enter the market; such situations are rare. First, practice generating skills well, avoid over-leveraging, follow trends, set risk thresholds, and trade less. By doing these things, you can continue on, and the rest is slowly accumulating experience and waiting for your own opportunities.
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