Last fall, my cousin invested 5,000 yuan into the market, and by the third day, he was down to 3,200. He came to ask me if he was just unlucky. I looked at his trading records—every order was opened with full leverage, he made three wrong moves in a row and kept adding positions, and after two more mistakes, he was wiped out. A classic case of "not choosing the wrong coin, but blowing up the account first."

Later, I summarized 8 practical rules I’ve used, and over three months he gradually climbed back to 4,800. No sudden wealth, but at least he can sleep peacefully now. Today, I’ve decided to share these rules—helping one person is better than none.

**Rule 1: Money must be allocated separately**
Divide your total funds into five parts. Use no more than 20% per trade. Stick to a 2% stop-loss. Even if you make five consecutive mistakes, your principal only drops by 10%, leaving room for a comeback. Many people go all-in at once, and one mistake sends them back to square one.

**Rule 2: Don’t fight the trend**
Rebounds in a downtrend are traps, like bait. Recognizing the overall direction is a hundred times more useful than guessing tops and bottoms every day. Follow the trend—this is not just empty talk.

**Rule 3: Avoid coins that surge wildly**
Coins that double in a day are usually being picked up by someone looking for a bagholder. While the market can be lively, protecting your own wallet is the most practical.

**Rule 4: Watch MACD signals**
Pay attention to bullish crossovers below the zero line; they’re worth noting. Dead crosses above the zero line mean you should consider reducing your position. This simple method has helped me avoid many obvious traps.

**Rule 5: Profit allows adding positions; never average down on losses**
When you’re making money, you can gradually add to your position following the trend. But if you’re losing, don’t try to fight your way out. That’s digging your own grave. The hole only gets bigger.

**Rule 6: Volume doesn’t lie**
Low-volume rallies at support levels might be an opportunity, but high-volume rises that stall? That’s usually someone unloading. The story told by volume is clear and straightforward.

**Rule 7: Moving averages are your map**
Short-term: 3-day MA; medium-term: 30-day MA; long-term: 84-day MA. Where the price stands relative to these lines guides your thinking. Simple, but effective.

**Rule 8: Review your trades daily with three questions**
What’s the logic behind this trade? Are the signals clear? Am I emotional? My cousin later analyzed his trades—83% of his losses came from impulsive decisions.

Ultimately, trading isn’t about who’s smarter, but who can stick to discipline. Slow is fast; minimizing losses is winning. Stories of overnight riches are just stories. Those who last are those willing to go slow but steady.

For mainstream coins like BTC and ETH, applying this logic feels much better. If you want to avoid the "zero overnight" trap, it’s better to discuss industry logic and take steady steps forward.