Having navigated the cryptocurrency asset market for eight years, from an initial four-figure capital to an eight-figure scale, this journey has been full of trial and reflection. Today, I want to summarize the missteps into ten core principles and share them with traders who are still in the exploration stage.

**The First Principle of Capital Management**

If your starting capital is within 200,000, a key strategy is to wait for only one true major upward wave per year. Many people's problem is frequent entry and exit, resulting in countless trades over the year, which is less effective than properly capturing one big trend. Patience and waiting to eat a full meal is far better than exhausting yourself with constant trading all year round.

**Necessary Preparation Before Live Trading**

Practice on a demo account first—this cannot be overstated. A demo allows unlimited failures, but a single big mistake in live trading could kick you out of the market. Always keep cognition and mindset ahead of capital, as this is the foundation of survival.

**The Battle Between Good News and Bad News**

A significant positive announcement often leads to a gap-up on the second day, which is usually an opportunity to sell. Why? Because the realization of expectations from good news can quickly turn into negative sentiment. Many people greedily hold on for one last move and end up trapped. Learn to realize profits in time—that’s true trading skill.

**Risk Awareness in Node Operations**

Start reducing positions a week before major festivals. Historical data repeatedly shows that there tends to be selling pressure before and after holidays. Holding cash or light positions during festivals can help you avoid many unexpected declines.

**The Rhythm of Medium-Long and Short-Term Trading**

For medium-long-term trading, learn to operate in rolling fashion, always keeping some cash on hand. When a rally occurs, sell in batches; when a decline happens, buy back gradually. Keep your positions active to survive longer. Short-term trading is simpler—just watch volume and chart patterns. Focus on coins with big swings and active charts; for those without volatility or volume, watching is pointless.

**Understanding Market Rhythm**

The speed of decline determines the strength of the rebound. Slow declines lead to slow rebounds; sharp declines often lead to fierce rebounds. Recognizing this rhythm is crucial—don’t rush to bottom fish during slow declines.

**Absolute Bottom Line for Stop Loss and Mindset**

Admit mistakes when they happen. These four words are the secret to survival. Never hold on to a losing position stubbornly; preserving your capital is necessary to stay in the game. This isn’t about giving up but about maintaining long-term competitiveness.

**Effective Use of Tools and Methods**

Use 15-minute K-line charts combined with KDJ indicators to find buy and sell points—short-term trading doesn’t need to be overly complicated. Grasp key levels on small cycles, and buy/sell signals will become clear. Lastly, mastering two or three methods is enough. Trying to learn everything leads to nothing; focus on one or two reliable strategies and master them thoroughly for better results than knowing a little about everything but not excelling at any.