Old routines cannot lead to new heights, and outdated ways of thinking also lock in the possibility of wealth growth. Observing recent trends can give a clue—trading volume has significantly shrunk, which is a signal. Instead of obsessing over the market charts, it's better to take this calm period to adjust your strategy. The key now is to preserve your principal and not let market temptations disrupt your rhythm. Consider how much tangible value your funds can exchange for in reality; this can help clarify your thinking. Although mainstream assets like Ethereum seem calm, it is a good opportunity to rethink your allocations.

Remember when I first entered the crypto world, I had only 5,000 yuan and a vague understanding of the differences between Bitcoin and Ethereum, only seeing the joy of others around me making profits. I followed the crowd into small coins that surged wildly, and during the LUNA crisis, I stubbornly held my position, ultimately shrinking my principal from tens of thousands to just a few thousand yuan. Through repeated losses, I realized one thing: the crypto space is never short of hardworking people; what’s lacking are those who can survive until the end. Today, I have transformed from a rookie chasing every rise and fall into a trader who can read candlestick charts. My investment philosophy is simple—protect the principal as the foundation, follow the trend as the method, and disciplined execution as the moat. I’ve summarized the pitfalls I’ve encountered over the years, hoping to help everyone avoid detours. **Three Ironclad Rules for Capital Preservation** **Rule 1: Never trade with money you can’t afford to lose** I set a strict rule for myself: with a monthly salary of 8,000 yuan, the maximum trading capital is 800 yuan, and I completely dismiss the idea of online loans or borrowing money. What’s the benefit of doing this? Market fluctuations of 20% in a day are normal, but you won’t panic and be forced to sell at a loss, keeping your mindset steady as a rock. **Rule 2: Enforce a 5% mandatory stop-loss** This is something real money has taught me. Now, my rules are as strict as they can be: close positions if the short-term price falls below the 5-day moving average; if it falls below the 20-day moving average in the medium term, exit the position. Stop-loss is not about admitting defeat but leaving yourself a way out. The market is open every day, opportunities are endless, but once your principal hits zero, the game is over forever. **Rule 3: Three-stage position allocation** Allocate 30% to mainstream coins like Bitcoin and Ethereum for long-term appreciation; 50% for swing trading to catch short-term opportunities; and 20% as idle emergency reserves. This allocation allows me to not miss market movements while having a buffer during black swan events.

The market has been quite interesting over the past two weeks. Recently, many traders have made profits, with some short-term gains from $1,500 to $3,000, and others earning over $2,000 in profit. This is quite normal. But remember one thing—profit is to be protected. No matter how exciting the market is, you must control your hands. Going all-in is a big taboo. Looking at Bitcoin's technical analysis, the upper band on the 4-hour chart has been tested once. Although the hourly chart briefly broke above the upper band, it quickly closed with a long upper shadow candlestick, and the price has returned below the resistance level. The momentum of MACD is weakening, and KDJ is turning downward, maintaining a bearish overall outlook. Those who are already holding short positions around 88,500 can continue to hold, and those who haven't entered yet can wait for opportunities at 89,500 or 90,500. Key support levels below are 87,500, 86,500, and 85,000. For Ethereum, the short position entered at 2,980 should be held patiently. If you haven't entered yet, 3,000 and 3,050 are still the main resistance zones; continue to short if touched. Support levels below are 2,930, 2,850, and 2,780. The market keeps fluctuating, poking up and down, shaking out both longs and shorts. Maintaining the right mindset is most important. Don’t let the market volatility make you dizzy, numb, panicked, or overly emotional. So, as always: manage your positions well, stick to your strategy. For short-term shorts, setting stop-loss at 91,000 and 3,100 is enough. Rest when needed, sleep early—markets won’t run away.