In cryptocurrency trading, technical skills are like driving skills when behind the wheel. But no matter how advanced your skills are, they can't withstand a fatal mistake—trading without risk management will most likely end in liquidation.

I've seen all kinds of traders flooding into the crypto space, most of whom harbor dreams of getting rich overnight. And the result? Their accounts shrink to a heartbreaking extent. The problem isn't that they're not smart; it's that they haven't understood the underlying rules of the game. Today, I’ll share the trading principles I've summarized over the years, lessons learned through real losses.

**Rule 1: Short-term trading, the 30-minute chart is the main battlefield**

Many beginners stare at the daily chart every day, thinking there's no opportunity when the fluctuations are small. Little do they know, for true short-term operations, the 30-minute cycle is the key. I've seen countless times where a long upper shadow on the daily chart suggests a sharp drop, but switching to the 30-minute chart reveals a solid bottom structure and strong bullish forces. Usually, the next day, a large bullish candle will emerge. Small timeframes reflect immediate battles between bulls and bears; when the 30-minute rhythm resonates with the overall market trend, that's when it's time to act.

**Rule 2: The trend is your friend; never fight the market**

In an upward channel, a pullback is an opportunity to buy cheap. In a downtrend, a rebound is a window to unload. This is the eternal logic of the market.

But what if the market falls into chaos and you can't see the direction clearly? The smartest move is to stay on the sidelines. I used to tinker repeatedly within choppy ranges, but the more I operated, the more mistakes I made. Later, I realized: when the trend is unclear, holding a cash position and waiting is the highest realm of trading. Market laws are fair; they are never wrong. The only one losing is ourselves. This is the first iron law of survival in the crypto world.

**Rule 3: Hype and themes are the lifeblood of short-term trading**

No matter how perfect the technical pattern, if the coin itself lacks hype, popularity, or trading volume, it’s just an illusion. Liquidity determines everything.

**Rule 4: Stop-loss isn't waste; it's life extension for your investment**

Trading without a stop-loss is essentially gambling. My worst experience was when I was supposed to lose only 5%, but because I couldn't bear to cut losses, it turned into a 50% big loss. Setting a reasonable stop-loss is about protecting your principal and your mental state.

**Rule 5: Position management is more important than choosing coins**

Even if you pick the right coin, going all-in can destroy you with one misstep. The core of risk management is: always leave yourself room to make mistakes.

**Rule 6: Emotions are the biggest enemy in trading**

Euphoria when making money can lead to overconfidence; panic when losing money can cause collapse. Both extremes lead to bad decisions. Discipline and calmness are the keys to victory.

**Rule 7: Learn to read volume and capital flow**

Price is just surface data; the real strength lies in volume. The meaning of a surge in volume versus a price increase on declining volume is completely different.

**Rule 8: Regularly review and turn experience into cognition**

Every loss is tuition paid, but only if you review why you lost and how to avoid it next time. Review isn't self-criticism; it's about continuously improving your trading system.

The crypto world may seem simple on the surface, but in reality, it’s a comprehensive test of psychology, discipline, and cognition. Those who make money are not necessarily because they have some secret; they just understand these rules earlier than others.