Who would have thought, when I entered the market 8 years ago with just 20,000 yuan, that stubbornly sticking to a “dumb method” would actually help me survive in this space? No insider info, not chasing hot trends, and even getting told by friends in chat groups, “Your approach is way too conservative.” But it’s exactly this seemingly foolish system that turned me from a newbie glued to the screen until my eyes turned red, into an old hand who can sleep soundly at night.

Here are the pitfalls I’ve stumbled into and the lessons I’ve summed up over the years, written for friends who are still finding their way—not guaranteeing you’ll get rich, but at least you’ll pay less in tuition.

**First, let’s talk about fund management**
This isn’t just motivational talk. Split your money into 5 parts. Only use 1 part at a time, and never lose more than 10% on a single trade. That means your maximum total drawdown is just 2%. Think about it—even if you’re wrong 5 times in a row, you only lose 10%. But if you catch one big upswing, you could make it all back and more. No matter how you calculate it, it makes sense. The prerequisite for compounding is survival—never go all-in on a whim.

**About bottom fishing and selling too early**
Feel the itch to buy the dip when the market drops? Most likely you’re catching a falling knife. Prices start rising and you panic-sell for fear of a pullback? That’s often when things are just taking off. The first lesson the market taught me: don’t go against the trend. Have the patience to wait when you need to, and the confidence to hold when you should—that’s more effective than any technical analysis.

**Don’t touch coins that have already skyrocketed**
I’ve seen too many people chase pumps only to get left holding the bag. Whether it’s a major coin or a shady project, any coin that surges too fast in the short term is basically a trap. When you’re jealous of others making money, they’re probably getting ready to hand you the losses. If you can resist FOMO, you’re already halfway to winning.

**Use indicators but don’t worship them**
I do often look at MACD: when DIF and DEA form a golden cross below the zero line, consider entering; when they form a death cross above the zero line, start reducing your position. But remember one thing—only add to winning positions, never average down on losers. That’s a lesson I learned the hard way with real money.

**Volume doesn’t lie**
A breakout with high volume at the lows is often a sign a trend is starting. I’m used to looking at the 3-day, 30-day, 84-day, and 120-day moving averages; when they all start turning up together, the trend is basically established. Don’t fantasize about catching the exact bottom—waiting until the trend is clear is never too late to get on board.

**No one is forcing you to review your trades**
After every trade, ask yourself three questions: Why did I buy? Where did I go wrong? Has the weekly chart changed trend? The difference between pros and amateurs isn’t who can predict better, but who learns more from their mistakes.

There’s nothing flashy about this system—in short, “slow is fast.” The market weeds out the impatient and rewards those who can stick to their rhythm and resist temptation. Want to know if there’s a shortcut? Maybe persistence itself is the biggest shortcut.