The worst days of the bull market seem to be over, but the best行情 is still far away. I have been in this circle for nearly ten years and want to tell everyone a truth: market consolidation periods are not traps; they are actually a litmus test for trading skills.

Recently, a market analyst with tens of thousands of followers stated that the crypto market will enter a consolidation phase in the next few weeks, and only after the direction becomes clear will a new rally begin. This reminded me of the market in October 2025—after Bitcoin surged to a new high of $126,000, it immediately dropped over 18%, then repeatedly oscillated around the so-called "Trump bottom" (about $110,000).

Such market conditions are the greatest test of human nature. Retail investors often make the mistake of chasing highs and selling lows; the more frequently they trade, the faster their accounts lose money. Today, I want to share three ironclad rules I have personally verified to help you preserve your principal during volatile markets, and even make some small profits.

**Rule 1: Understand the market state; doing nothing is the strongest strategy**

Consolidation periods test your resolve the most—prices oscillate between key support and resistance levels, with no clear trend. When you trade frequently during this time, you often make wrong decisions based on short-term fluctuations.

The market in late December last year is a vivid example: Bitcoin was oscillating within a narrow range of $86,567 to $90,554 for an entire week, with strong support and resistance levels, but no clear trend momentum.

I later discovered a rule: sideways trading is actually the market "gathering strength." Instead of messing around inside, it's better to wait until a true trend emerges before taking action. Now, I habitually limit myself to checking my account no more than twice a day; the rest of the time, I treat the market as nonexistent.