I am an investor with years of experience in crypto trading. Relying on a basic methodology that many look down upon, I have turned an initial capital into 1.48 million USD over four years. There are no insider tips, luck isn’t a big factor, just sticking to a set of rules. Today I want to share 6 ironclad trading principles summarized from practical experience. If you can understand one, you might avoid significant losses; if you truly follow three or more, you can generally outperform most retail investors in the market. These are personal insights, and I welcome discussions from those with different opinions.

**1. Rapid Rise, Slow Fall — Hold Steady During Shakeouts**

Many traders see a coin’s price rapidly surge and rush in hastily, only to panic when a correction begins. But the main players’ tactics are often like this: after a quick rally, the subsequent pullback is very slow, like dull knives cutting meat—taking a week or even longer to chip away a little at a time, with trading volume continuously shrinking. This is a standard shakeout technique aimed at shaking out those weak-willed followers.

For example, in March this year, a certain public chain’s token surged 40% in two days, but then the entire week saw downward movement, with small daily declines and consistently weak volume. Contrast this: if it were genuine distribution, there should be a volume spike with a sharp plunge. Conversely, a sudden flash crash after a volume surge is a trap set by the main players to lure in buy orders.

My approach is to only participate in coins with an upward weekly trend, specifically at the point of “volume breakout followed by a pullback to the 10-day moving average with decreasing volume.” The stop-loss is set 5% below the pullback low.

**2. Rapid Drop, Slow Rise — Stay Away from Rebound Traps**

The opposite pattern also occurs frequently: a coin suddenly plunges sharply, then begins a slow rebound, seeming like a good bottom-fishing opportunity. But this is often a trap. The big players use this rebound to attract bottom-fishers to buy in, then continue to sell off. If the rebound after a sharp decline is weak and accompanied by low volume, it’s a classic fishing line.

Take what happened with LUNA in 2025—before the crash, there were multiple instances of over 20% single-day drops followed by slow rebounds. Many retail investors thought it was a “good opportunity” and rushed to buy the dip, only to get caught in the trap.

The way to handle this is: once a coin breaks below the 60-day moving average, if it cannot reclaim previous highs during the rebound, sell immediately—don’t hesitate.