After years of hustling in the trading circle, I’ve summed up a few survival rules that may seem clumsy but are actually effective.

First, here are three iron rules—break them and you’ll definitely lose money:

Rule one: Don’t chase when prices are rising, and dare to enter when they’re falling. Stay calm when the market is crazy, and make your move when it’s quiet. This logic goes against human nature, but it really works.

Rule two: Don’t just place limit orders and wait for the market to come to you. When you see the right opportunity, act immediately—hesitation leads to defeat.

Rule three: Always leave room in your position. Going all-in is like backing yourself into a corner—when the next opportunity comes, all you can do is watch.

Now, a few pointers for short-term trading:

Is the price oscillating repeatedly at a high level? It’ll probably keep testing higher. Is it dragging at a low level? Beware of further drops. Until the direction is clear, keep your hands off.

Sideways consolidation periods are the hardest to endure. Many people can’t stand the boredom and make reckless trades, only to give back all their profits.

Consider building positions when red candles appear, and exit in batches when green candles surge. Candlestick charts don’t lie—the key is whether you can read them.

Is the initial drop slow? Then any rebound will likely be weak. If selling accelerates later, that’s when a rebound is actually worth expecting.

Building positions requires layers, like constructing a pyramid from the bottom up. This strategy suits assets with long-term value—if you’re after quick wins, it won’t work.

After a sharp rise or fall followed by sideways movement, don’t rush to close out or add to your position. Changes often brew in these calm periods—keep some ammo ready for the next wave of volatility.

There’s nothing profound about these methods—the hard part is sticking to them. Can you maintain discipline when the market swings? Can you stick to your plan when you’re in the red? Skill is one thing, but mindset is the real key to success or failure.