The first two years I just entered the crypto world, I was a typical rookie—staying up late watching charts, chasing highs and selling lows, getting liquidated and losing sleep. At 3 a.m., I’d still be glued to the candlestick chart, account balance bouncing up and down like an ECG, so anxious that I’d pull out hair. At my worst, I lost all the profits I made that month in a single day.

Later, I realized one thing: why not treat trading crypto as a proper job? Set rules, allocate time, follow procedures. After trying for a few years, the results were surprisingly good, and now my annual return rate can be stably above 50%.

Today, I want to share seven ironclad rules, each learned from real trading losses. I hope they can help you avoid some detours.

**Rule 1: Limit trading hours, only trade after 9 p.m.**

During the day, information is too chaotic. Major players often use fake good news to dump, or fake bad news to accumulate. It’s hard to tell the difference. I’ve done statistics: over 70% of morning chasing gains get trapped, and afternoons are slightly better but still not ideal.

My current approach is to strictly restrict trading hours, only carefully analyze charts after 9 p.m. When this time comes, news is generally stable, candlesticks show clear direction, and I have a good sense of the market. At other times, focus on work or family. Don’t treat trading as a 24-hour marathon; think of it as a sniper battle at key points.

**Rule 2: Profit must be withdrawn immediately, lock in gains**

Some say, “Wait until you make ten times the profit before cashing out.” Don’t believe that. I’ve seen too many accounts grow from 100,000 to 300,000, only to crash back to 20,000 in a sudden dip. Watching numbers evaporate on the account can drive you crazy.

My simple rule: every time profits are realized, withdraw 30% to your bank card. For example, if you make 1,000 USDT, transfer 300 to your fiat account immediately. The remaining principal continues to operate, but the core profits are secured.

What’s the benefit? It instantly reduces psychological pressure. Market fluctuations won’t keep you awake because you’ve protected the key gains. No one can predict crypto market moves accurately. Instead of dreaming of perfect bottom-fishing or top-selling, take your rightful share steadily.

**Rule 3: Limit each position to within 5% of your account**

Even the best opportunities shouldn’t be all-in. Once you go all-in, any small move can wipe you out. My current logic is to limit each trade’s loss to no more than 5% of the total account.

Even if you make three consecutive mistakes, your account only shrinks about 15%, which is acceptable. But if you heavily leverage a single position, one mistake can be fatal.

**Rule 4: Set stop-loss orders, never manually close positions**

People’s judgment is worst when they’re losing money. I used to make this mistake: when losing, I’d wait for a rebound, but ended up taking deeper hits. Later, I developed the habit of setting stop-loss orders at entry, so that when hit, they automatically close. I pretend I don’t see them.

What’s the benefit? It avoids the biggest enemies of human nature—hope and greed. No matter how decisive the stop-loss, it’s still better than holding onto a losing position. But once you enter, discipline is essential.

**Rule 5: Don’t trade coins or sectors you don’t understand**

There are plenty of opportunities in crypto, but you probably only understand a few. I mainly trade mainstream coins and projects with solid fundamentals. For coins whose team I don’t know or lack real-world use cases, I don’t touch them, no matter how hot they are.

As Buffett says, only trade within your circle of competence. This can reduce at least 50% of the pitfalls.

**Rule 6: Regularly review and keep a trading journal**

Every week, I spend one or two hours reviewing my trades—analyzing which ones made money, why, and which ones lost money, and where. Over time, this helps clarify my trading patterns.

Many people are busy watching the market but unwilling to spend time reviewing. As a result, they lose money repeatedly, making the same mistakes ten times. A trading journal is like a “fitness record” for trading; it helps you identify blind spots.

**Rule 7: Mindset management is more important than technical analysis**

Technical analysis can make money, but if your mindset collapses, everything is useless. When the market rises, you get excited and can’t sleep; when it falls, you get anxious and can’t eat. Trading in such states leads to garbage decisions.

My current approach is: when the market is good, remind myself not to be reckless; when it’s bad, remind myself not to be timid. View trading as a long-term probability game, not a gamble for overnight riches.

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These seven rules are not some profound theories; basically, they are discipline, rules, and patience. The ones who survive in crypto are not the smartest, but those who can stick to the rules the longest. I hope these experiences can be helpful to everyone.