I entered the crypto world at the age of 29, and now I am 37. I still remember the first time I played futures 8 years ago, losing 60% of my principal in just three days. That feeling of lying in bed staring at the ceiling is still unforgettable. At that time, I swore by heaven that I would never touch futures again in my life, calling myself a dog.

But life is so ironic. Today, I make a living through trading, and my account grows like a rolling snowball. It’s not because of some extraordinary talent, nor is it luck. Honestly, it’s because I finally ingrained my trading plan into my mind. The 7 rules I want to share may seem a bit "dumb," but in reality, these are the most stable, ruthless, and life-saving principles.

**Rule 1: Diversify Positions and Control Risks, Even When Losing, Know Why You Lose**

My biggest mistake early on was trying to go all-in. My mind was full of "bet it all," but the result was not sudden wealth but a margin call. Now I set a strict rule for myself: divide the total funds into 5 parts, and never open a position exceeding 1 part at a time.

For example, if you have 100,000 yuan in capital, then at most you invest 20,000 yuan each time. Set a 10% stop-loss, meaning you must cut losses when losing 2,000 yuan. This way, your maximum loss per trade is only 2% of your total funds. Even if you make 5 consecutive mistakes, you still have 90% of your principal left— as long as you’re still alive, the chance to turn things around is always there.

Don’t think this is too slow. The most ironic truth in the futures market is: the more anxious people are, the faster they die.

**Rule 2: Follow the Trend, Don’t Catch Falling Knives**

Some people are naturally fond of bottom-fishing. When they see the price dropping, they can’t help but rush in. But what happens? They buy in halfway up the mountain. I’ve been tricked countless times by this move.

Later, I understood a principle: rebounds in a downtrend are traps, and corrections in an uptrend are real buying opportunities. Last year, BTC dropped from 60,000 to 50,000, and during the rebound to 55,000, many rushed in to "bottom-fish," only for the market to crash back to 48,000, trapping all those people.

This year’s situation is completely different. After BTC breaks through previous highs and pulls back, that’s the real safe entry point. The trend is your amulet; trading against it is like actively giving the market a red envelope.

**Rule 3: Avoid Coins with Rapid Gains; Hunters Never Chase Highs**

When you see a coin jump 5%, 10%, or even more in a day, you think, "I want to jump in too." This mindset is typical of gamblers. What I’ve learned is: true hunters never chase highs; they wait for the right timing.

Coins that surge rapidly within a day are often being dumped by major funds. When you enter, they’ve already started to clear the snow. On the other hand, coins that rise slowly may not seem as exciting, but their risk is much lower, and their returns tend to be more stable.