I have to admit, in the past few years in the crypto world, I've tasted all kinds of flavors—liquidated positions, pitfalls, and losses. Frankly, I am just an experienced player who has been taught lessons by the market, and I don't dare to claim to be a big shot.

Two years ago, a fan approached me, holding $1500, wanting to turn around his previous losses. I didn't teach him any moving average theories or technical indicators. Instead, I gave him three simple but hard-earned practical rules that I learned through my own blood and sweat.

He followed this plan, and after three months, his account surged to $45,000, without a single liquidation during that period. Honestly, this isn't about talent; it's about grasping the market rhythm.

**First Rule: Divide the principal into three parts, each operating independently**

Split $1500 into three portions, each $500. These three amounts do not borrow from each other and have different purposes. The first is for short-term fluctuations, opening at most two positions per day, and closing the software immediately after trading; the second remains idle, waiting for a clear bullish pattern on the weekly chart or a volume breakout at key levels before acting; the third is purely for life-saving, used to add positions when the market crashes and the account is about to be liquidated, to preserve the principal.

What is the biggest benefit of this division? A stable mindset. Because you will never risk all your funds due to short-term losses, ensuring the safety of your principal.

**Second Rule: Follow the trend, stay out of the market if you don't understand other patterns**

Before entering, clarify three conditions. First: the daily moving averages must be in a bullish arrangement; if not, do nothing—lying flat is also profitable. Second: the market must volume-break through previous highs and the daily close must be above the new high; only then do you enter with a small amount of money. Third: once the account profits reach 30% of the initial principal, immediately withdraw half of the profits, and set a 10% trailing stop to automatically close positions.

In simple terms, when making quick money, don't be greedy. If it's time to run, run. Don't wait for the market to teach you a lesson.

**Third Rule: Freeze your emotions completely**

Before trading, write a detailed plan—how much to enter, where to set stop-loss, and target prices. Set the stop-loss at 3%, with automatic close at that point, no negotiations. Once profits reach 10%, immediately move the stop-loss to the cost price, effectively eliminating risk. Every day at midnight, shut down your computer. If you can't sleep, uninstall the app—don't give yourself the chance to check the market impulsively at night.

In this industry, emotions do more harm than technicals. I've seen too many people lose weeks of profits overnight due to impulsive decisions.

Markets are always there, opportunities are endless, but if your principal is gone, it's truly gone. Master these three rules first. The other fancy stuff like wave theories and various indicators will become clear in time. The market is always waiting for you; there's no rush.