Cryptocurrency trading myths of getting rich overnight are played out every day, but those who can make money long-term never rely on luck—they depend on systematic methods and ironclad discipline. After years of market ups and downs, I’ve summarized 10 trading iron laws learned from practical experience. These are not some profound theories but the most straightforward and effective survival rules.



**Rule 1: When strong coins keep falling, it’s an opportunity**
If a coin drops from a high level, and it’s a strong currency, every deep correction is a golden window for low buy-in. Especially at the 9th day of continuous decline, institutions usually have already cut losses, and retail panic reaches its peak. Entering at this time can yield unexpectedly high win rates. The question is, do you dare to jump in during panic?

**Rule 2: Reduce positions immediately after two days of gains**
No matter how strong the coin’s momentum, if it rises for two consecutive trading days, sell part of your holdings without hesitation. Locking in profits is the top priority; keep some to follow the trend, but absolutely do not let the remaining profits be wiped out by volatility. This is a common trap for beginners—earning but still getting trapped.

**Rule 3: Don’t chase after a 7%+ surge the next day**
If a coin jumps over 7% in a single day, your first reaction must be to stay calm. Such a rapid surge often overextends short-term gains, and the next day it’s likely to pull back or even retrace. Those who chase in usually have to endure two or three days of losses before breaking even.

**Rule 4: Don’t buy coins that have lost momentum after a rally**
Coins that have doubled in the past have a special allure, but once they lose upward momentum, don’t think you’re a bottom-fishing expert. Restarting their rally takes time and new market sentiment catalysts. Reckless buying will only make you the person catching a falling knife.

**Rule 5: Switch out if a coin remains stagnant for three days**
If a coin shows no significant movement for three consecutive days, it indicates the market has no expectations for it. This “dead coin” state is hard to change in the short term. Give it three more days; if it still remains inert, decisively switch to a hot coin. Don’t stubbornly hold on.

**Rule 6: Cut losses on the second day of a loss**
If the coin you bought yesterday is already down today, the only correct action is to stop loss. Any hope or luck mentality will turn a small loss into a big one. Those who repeatedly verify this law number at least 80 out of 100.

**Rule 7: Master the rhythm of continuous gains, trading becomes simple**
This is the core rule. After a coin rises for two days, a correction can be a low buy. If it rises for three days, it usually peaks on the fifth day. More than five days of continuous rise generally indicates a short-term top—exit immediately. Internalize this rhythm, and 80% of market opportunities will be in your grasp.

**Rule 8: Volume and price must align for a true signal**
A surge in volume at a low point followed by a successful breakout signals the start of a major trend—follow it. Conversely, high volume at a high level with no price movement indicates exhausted buying power; don’t waste words—run. Trading volume is like the coin’s heartbeat; it can tell lies, but price can’t, and volume never lies.

**Rule 9: Always trade coins in an uptrend**
Use moving averages to judge the trend:
- 3-day MA turning upward indicates short-term potential
- 30-day MA upward shows a medium-term bullish foundation
- 80-day MA upward signals entering the main upward wave
- 120-day MA upward means the entire bull cycle is coming
Follow the trend; it reduces risk and naturally doubles profits.

**Rule 10: Small capital can turn around with methods and discipline**
Don’t give up because your capital is small, and don’t think that leverage of ten times will make you rich overnight. True wealth accumulation comes from correct methods, a calm mindset, and unwavering discipline. Stick to these three points, and even starting with small money, you can reverse the situation.

Final advice, and the most overlooked: don’t trade full-time, and never borrow money to enter the market. Keep this bottom line, avoid despair, and the wealth storm will come naturally.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 5
  • Repost
  • Share
Comment
0/400
JustHereForMemesvip
· 01-08 09:52
It sounds good, but how many really dare to jump in during the panic on the 9th day? Relying on a two-day rally to reduce positions sounds simple, but in reality, it's hell to execute. Wait, is the volume-price coordination reliable? Why do I still get cut? A small principal relies on discipline to turn around... I do have discipline, just didn't catch the storm. Not being a full-time crypto trader is the most painful part, as if we all can really listen to that. Stop-loss the next day? I can stick to it for three months, let's see haha. Once you get the rhythm of Rule 7... there’s definitely something there. Is a strong coin really a golden opportunity on the 9th day of consecutive decline? I've waited through the deep gold pit. I feel like I’ve never quite figured out how to use the moving average system properly.
View OriginalReply0
Layer2Arbitrageurvip
· 01-08 09:51
look ngl this "9-day panic bottom" thing is just pattern matching on historical data with survivorship bias baked in. actually ran the numbers on day-9 reversals vs day-8 / day-10... the delta is negligible once you factor in gas fees and slippage across liquidity pools. the real alpha is in cross-chain basis arbitrage, not timing memes.
Reply0
SelfCustodyIssuesvip
· 01-08 09:49
You're quite right, but 99% of people can't do these, including myself haha. Stop loss the next day? I always hold on until liquidation before waking up. After two consecutive days of rise, reducing positions sounds easy, but who can bear to sell when it's truly losing money? On the 9th day, when institutions stop loss and retail investors panic, I guarantee my hands will be trembling. I agree with the principle of volume and price coordination; how many times have I foolishly bought during high-volume peaks? Honestly, it's about execution. Knowing and doing are worlds apart.
View OriginalReply0
gas_fee_traumavip
· 01-08 09:46
No matter how good it sounds, you have to see if you can survive the bull market. Raising positions for two consecutive days and then reducing them sounds simple, but the psychological barrier is the hardest. The idea of stopping losses on the 9th day feels like making up rules again; markets don't follow such strict patterns. I just want to ask everyone, how are those who are really following this approach doing now? The moving average strategy has been around for over a year without seeing any profit, buddy. The most valuable rule is not borrowing money and not working full-time; everything else is nonsense. Making small money relies on luck, losing money depends on discipline.
View OriginalReply0
LightningPacketLossvip
· 01-08 09:39
A two-day rally followed by profit-taking—easy to say, hard to do. Most people are still greedily hoping to catch the third wave. The sixth point is the most painful: the words "stop loss." Luckily, I understood this concept many years ago. The moving average system is indeed reliable, but unfortunately, most people can't hold on until the 120-day moving average before getting wiped out. I need to remember the rule of switching positions during sideways trading for three days; constantly holding onto bad stocks wastes time. Not chasing a 7% surge the next day is a hard lesson learned—those who chased ended up as bagholders. I agree with the logic of buying low on strong coins. The problem is, how do you determine which coin is truly strong? It's easy to talk about discipline, but how many actually practice it? The toughest part is maintaining the right mindset. That small capital turnaround might sound like a motivational quote, but the truth is, it makes sense—it's all about whether you can stick to it.
View OriginalReply0
  • Pin

Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)