A friend often asks me, how can I lose less money in the crypto world and actually make real profits? Over the years of experience, I’ve summarized seven hard rules that, if followed, can truly help avoid big pitfalls.

**The first rule is to observe during sideways trading and only act once the trend is confirmed**

When the market is unclear, never operate blindly. Sideways movement is like a trap, with fluctuations everywhere and risks lurking. The key is to learn patience—wait for the market to tell you the direction; the moment the trend changes is the most lucrative opportunity.

**Don’t fall in love with hot coins for too long; exit when it’s time to**

Market hype comes quickly and fades just as fast. If you see a coin’s popularity waning and still hesitate to sell, that’s dangerous. Funds are like the wind; you need to follow the market’s pulse and adjust your positions frequently. That way, you won’t end up as the last bag-holder.

**When a gap-up surge with increased volume occurs, don’t rush to sell**

A gap-up with high volume breakout is usually a signal from the main players. Seeing unrealized gains in your account might tempt you, but don’t rush. Wait for a pullback before making a move. True profit-makers eat in the volatility, not by rushing to finish everything in one go.

**When a massive bullish candle appears, exit at the close**

A strong bullish candle looks exciting, but after a big push, the main players often do a shakeout. Anticipate the market rhythm in advance and exit before the close. Only then can your unrealized gains be truly secured.

**Moving averages are your friends; buy low at support during bearish candles, sell on breakout during bullish candles**

Keep an eye on the moving average system. When a bearish candle approaches support, it’s a good chance to buy low. Conversely, when a bullish candle breaks through resistance, sell decisively. Short-term trading is all about rhythm—hesitation might cause you to miss the boat.

**Don’t sell on a spike, don’t buy on a plunge, and don’t stay idle during sideways movement—this is the iron law**

Market reactions are always faster than people. Don’t try to bottom-fish or chase rallies. Blind operations are just giving money to the whales. Stay alert, avoid the temptations of short-term fluctuations, and patience is your greatest asset.

**The last and most practical rule: test the waters first, buy in small amounts**

Never go all-in at once. Use small amounts to test the market’s response. Once the trend stabilizes, gradually add to your positions. This steady approach is the most reliable way to achieve long-term doubling of your capital.