Profits in the crypto world come quickly and go just as fast. Some can turn $3,000 into $280,000 by adhering to strict trading discipline, and it's definitely not luck but a deep understanding of market risks and strong execution.

Contract trading is a double-edged sword. 100x leverage can rapidly grow your account, but it can also wipe out your principal in an instant. Some traders adopt aggressive strategies: dividing their capital into 10 parts, using only $30 per trade with 100x leverage. If their market judgment is correct, a single point move can double their money; if wrong, they are out of the game immediately. This approach is extremely risky, but if you strictly follow trading discipline, you can actually survive market volatility more steadily.

**First Iron Rule: Stop-loss is not about price.** The most common trap for beginners is the "waiting for a rebound" mentality. The market will never reverse just because you are lucky. When it hits your stop-loss level, you must exit, acknowledging a loss is far more rational than hoping for a rebound to avoid liquidation.

**Second Iron Rule: Stop after 5 consecutive losses.** When the market is unclear, continuing to trade is just giving away money. Setting a circuit breaker is crucial: after 5 consecutive losing trades, immediately close the trading interface and take a break for a day. Often, after resting, the market direction becomes clearer.

**Third Iron Rule: Regularly withdraw profits.** The numbers in your account are just on paper; if not realized, they can evaporate at any time. When profits reach $3,000, withdraw at least half. Only the realized gains count.

**Fourth Iron Rule: Follow the trend, avoid oscillations.** In a trending market, high leverage accelerates gains; in choppy sideways markets, it becomes a money grinder. When the direction is unclear, staying in cash and observing is much safer than forcing trades. Wait until the trend is clear, then focus your efforts.

**Fifth Iron Rule: No single position should exceed 10% of your principal.** Going all-in is a fast track to liquidation. Only invest small amounts like $30 each time; when you can afford to lose, your mind stays calm, and your trading remains rational. Small positions keep your mindset stable, and a stable mindset leads to better decisions.

These five rules may seem simple, but executing them tests human nature. Most losses in the market are ultimately not due to lack of skill but due to lax discipline.