It took me three years to truly understand the concept of "financial freedom."

In the first year, I was purely thinking about getting rich quickly, but as a result, my account blew up. In the second year, I started learning to cut losses, gradually filling the gaps of losses. By the third year, relying on several rules I developed through my own exploration, I was able to live comfortably without working—though the process was much more mentally demanding than I had imagined.

Starting with 20,000 yuan in New Year’s money, I entered the market, and now I can go without working and not go hungry. I haven't engaged in insider trading, nor have I dared to bet everything on one shot. I’ve managed to survive solely by following these 7 rules.

**Rule 1: Capital must be diversified**
Divide your starting funds into five parts, only move one part at a time. Set a 10% stop-loss line; even if you make five wrong decisions in a row, the total loss won't exceed 10%. This way, a single mistake won't cause serious damage. When the account gains 10%, withdraw the principal—get your capital back, and you'll feel more secure.

**Rule 2: Follow the trend, don’t fight the market**
The trend is like an upward elevator—going with it is easier. Going against the trend is like climbing stairs during a power outage—tiring and easy to fall. During a downtrend, don’t expect to buy cheap dips; that’s not catching a bargain but committing suicide. The only safe entry point is during a rebound in an uptrend.

**Rule 3: Never touch coins that surge wildly**
Those that multiply five times in three days look tempting but are actually a death sentence. Unless you can monitor the screen 24/7, you’re likely just handing over your money to the big players.

**Rule 4: Keep indicators simple, not complicated**
Use MACD for the big trend, RSI to judge overbought or oversold conditions, and VPVR to find support and resistance levels—these three are enough. I used to rely on a bunch of fancy indicators, but it only confused me more.

**Rule 5: Don’t add to losing positions, only top up when profitable**
Adding during a decline is like planting a landmine. Adding during an uptrend is riding the wind and waves. If you’re wrong, cut your losses; don’t stubbornly hold on until you become numb.

**Rule 6: Volume and price are the most honest**
A sudden increase in volume after a low-volume consolidation indicates a market move is about to start. High volume at a high price that doesn’t rise suggests the main players are quietly offloading—get out quickly. It’s okay if you don’t understand candlestick patterns; charts built from volume bars never lie.

**Rule 7: Daily review is the cheapest tuition**
After the market closes, write down three things—why you bought, why you sold, and how to improve next time. Stick to this for 30 days, and you’ll save the tuition fees you’ve paid before, plus avoid many pitfalls.

Asset allocation, timing, rhythm—these details can be explained gradually.