Having navigated this market for many years, I have seen too many people remain in negative returns year after year. Today, I want to summarize the pitfalls and explosive trades I encountered during my six years of accumulated profit of over 20 million yuan, hoping to provide some insights for traders still in confusion.

Regarding capital and mindset, I have some words to say. If your starting capital does not exceed 10,000 yuan, don’t keep thinking about full positions every day. In fact, as long as you catch one real main upward wave in a year, it’s enough to change your account’s outlook. When the market is not active, patience is the strongest weapon. Many people, however, fail to do this.

Demo trading accounts must be taken seriously. People can never earn money beyond their cognition—this is not just motivational talk. In a demo account, you can fail infinitely, allowing you to practice your mindset and courage, but a single big mistake in a real account could wipe you out. I recommend every beginner to thoroughly hone themselves during the simulation phase.

Regarding market rhythm, I have summarized a few rules. Good news often turns into bad news—this is a common pitfall. If a major positive event does not lead to a rally on the same day, it’s advisable to cash out when the market opens high the next day; otherwise, you risk being caught in a trap. Also, be cautious during holidays; history has repeatedly shown that “reducing positions or even holding cash before holidays” is the right approach.

Mid- to long-term strategies emphasize rolling operations. The core logic is to maintain sufficient cash reserves and repeatedly buy low and sell high. Don’t always think about riding a wave all the way—only market makers can do that; retail traders doing so is just asking for trouble.

Short-term coin selection is crucial. Focus on coins with active trading volume and obvious chart fluctuations. Inactive coins waste time and can also wear down your trading mindset. Additionally, the downward rhythm is important: slow declines with rebounds can be frustrating, but accelerated drops often mean rebounds will come faster. Mastering this rhythm can help you make fewer mistakes.

Stop-loss is not worth much discussion—if you buy wrong, accept it. Once the direction is confirmed to be wrong, cut losses immediately. Simply put, as long as your principal is still alive, the opportunity to make money is always there. This is the fundamental rule of survival.

If you are doing short-term trading, a 15-minute K-line combined with the KDJ indicator is a good combo. These tools can help you accurately identify many golden buy and sell points. I personally rely on this method to recover from many mistakes.

There are countless technical indicators and methods, but you don’t need to master them all. Instead, mastering one or two and practicing them to perfection is more useful. Superficial knowledge is a big taboo in trading.

Having said so much, every point is a lesson learned through real money and blood. Reducing detours in your trading path is itself a way to make money. If these insights help you, try them in real trading; finding a rhythm that suits you is the most important thing.