Having navigated the crypto markets for years, my deepest lesson comes from a painful experience. My account dropped over 50% from its all-time high, and at that time, I failed to catch the early warning signals of MACD divergence. I would stay up late every night watching candlesticks, watching my holdings break through key support levels, and the psychological torment was even worse than the losses themselves.

It was only later that I realized the root cause of the losses wasn't due to infrequent trading, but because human greed and fear completely dominated my decision-making.

Most retail investors have fallen into this trap: holding on stubbornly when the price breaks support, dreaming of a V-shaped reversal; getting impatient and selling after a slight rise of a few points, only to watch the main upward wave pass by, eventually becoming a market’s cash machine. The true trading philosophy is actually the opposite—when a trend is established, be willing to hold core positions, but when the price effectively breaks below a key neckline, cut losses without hesitation. Use the discipline of "cutting losses short and letting profits run" to extend your trading cycle. This isn’t about getting rich overnight, but about surviving longer.

Volume is a metric many people watch, but few truly know how to use it. An asset with gentle volume-driven upward movement and rising price and volume often signals a good opportunity ahead; conversely, after breaking key levels and entering a period of low-volume sideways movement, if you notice signs of capital inflow, it could be a second entry point. But if volume surges while the price stagnates, be cautious—those sudden spikes that look exciting often hide the risk of a quick pullback.

I’ve suffered many losses in position management. I used to think diversifying assets would reduce risk, but it only made things more chaotic. In reality, holding onto 2 to 3 core assets is enough; the challenge is controlling the impulse to place random trades. Never chase after a rebound after a sharp short-term decline; sudden surges at the end of the day are often trap setups, with a high probability of a correction the next day. After making big profits, always close positions and rest; don’t hold onto losses stubbornly—wait until the market rhythm is clear before re-entering. Opportunities are everywhere in the market, but the biggest test is whether you can resist the urge to make impulsive trades at any moment.