There is a very ironic phenomenon in the crypto world: those who spend time studying various indicators and trading strategies often lose money faster than others; conversely, those who stick to a few simple and straightforward rules tend to survive the longest and earn the most steadily.

Recently, within 48 hours, 1.8 million retail investors were liquidated due to double-sided liquidation. At first glance, it’s frightening, but upon closer inspection, it all boils down to two words—greed. The market makers excel at using volatility and noise to trigger human greed and panic, causing you to make wrong decisions at the wrong times. Those who truly survive in this market rely not on flashy skills, but on discipline ingrained deep in their bones.

**Three Must-Follow Taboo Rules**

1. Don’t chase highs or sell lows. Busy markets are often traps; market makers aggressively lure buyers at high levels and push sellers at low levels. True value zones are usually quiet corners. Many people see others making money and rush in, only to become the last bagholders.

2. Don’t go all-in on a single choice. Some people put all their assets into one coin or one direction—this is not bravery, it’s suicide. Diversifying holdings is not about giving up gains but effectively hedging risks. Just like allocating funds across different assets, never let the market wipe you out in one go.

3. Don’t go all-in on a single trade. Cryptocurrency daily volatility exceeding 10% is common; going all-in means one wrong judgment and you’re out. Always reserve at least 30% cash reserves—this is the bottom line for survival in this market.

**Four Mindset Principles to Strictly Follow**

Sideways markets are the most draining. Data shows that about 80% of losses occur during consolidation phases. Many traders frequently enter and exit during sideways trends, paying transaction fees each time, ultimately becoming the exchange’s ATM. The correct approach is: stay put during consolidation, and only act after a confirmed breakout.

A sharp decline is actually a gift. When a big red candle appears, many retail investors panic and sell off, but on-chain data often shows large investors aggressively buying quality assets. History repeatedly proves that the most profitable opportunities are hidden in moments of panic. Instead of being controlled by fear, better to prepare your bag and wait for the right moment.

Lower your entry cost below the market makers’. Use a pyramid-style position building method: invest only 30% initially to test the trend, then add positions gradually after confirmation. This way, your average cost stays in a safe zone, and even if there are fluctuations later, you won’t get caught in a dead position.

Protect your principal above all. Many dream of overnight riches but end up losing their capital. The true survival rule is: single trade losses should not exceed 1-2% of total funds. Only then can you stay long-term in the market. During rapid rises, remember to withdraw your principal first; during sideways markets, don’t be greedy, as risks often hide where you can’t see.

**Key to Implementing These Rules**

These methods may sound "stupid," requiring immense patience and discipline—but precisely because of that, market makers cannot exploit them. The key is, to execute properly, you need clear, timely, and comprehensive data support. For example, monitor real-time signals like funding rates, open interest, and on-chain transfers to proactively avoid risks and prevent getting caught.

When you can cut through market noise and identify genuine signals, those seemingly "stupid" methods will become both stable and accurate to execute. That’s why some people can consistently profit while others keep losing money—the difference lies in discipline and mastery of information.