Bull Market Guide: 6 Trading Rules to Improve Trading Success Rate

Original source: game X account

Author: @gameforone, Crypto KOL

Compiled by: Felix, PANews

Many crypto enthusiasts have numerous concerns, fearing this is the last cycle in the crypto space, uncertain how long the upward trend can last, and the social pressure from others' poor performance. A series of fatal flaws undermine many people's decision-making:

• Distraction: Chasing every hot trend instead of focusing on trading
• Pessimism and hesitation: Uncertainty leads to inaction, doing nothing meaningful for a significant period, or even not participating
• Lack of confidence: Insufficient due diligence on projects, unable to build the confidence needed to persist through volatility
• Lack of profit-taking strategy: Fully closing positions at Bitcoin's lowest price due to fears of the trend ending

Based on this, the following recommendations are made:

Narrow Your Focus

Stick to trading specific assets within one or two chains.

Choose your game: on-chain or off-chain.

If you think you can do anything, that is pure self-deception. Optimize to focus on your trading scale, strengths, and the highest return on investment under current market conditions. Once you consider this, you will likely have a clear idea of where to trade and what to do.

Develop a Trading Strategy

Know when to invest, trade, or speculate. Most people confuse these; here’s a simple framework:

• Investing: Based on theoretical grounds, backed by fundamentals and technicals. Information asymmetry gives you an advantage, betting that the market will reprice within 1-3 months.

• Trading: Focus on technicals, catalysts, or narratives (e.g., events, announcements). These trades last less than 2 weeks, but if price/narrative feedback strengthens, they can convert into investments.

• Speculating: Well-planned gambling driven by news (think of Musk tweeting hints about market movements). Such trades are short-lived, disappearing within hours or days.

Stick to the Plan

Create a clear trading plan:

• Market Cap: Define your range

• Profit-taking: Rules for adjusting positions, don’t abandon positions out of fear

• Valuation: What size can the asset reach, and how quickly can it get there

• Plan Failure: Collapse of fundamentals or technicals—know when and how to reduce positions (partially or fully). It may also be due to broader market trends or date-based (e.g., uncertain macro data about to be released, which could be a good time to take profits, knowing you can buy back at a lower price)

Know Yourself

Identify your weaknesses: lack of experience, skill gaps, optimistic/pessimistic biases, poor scale management, or lack of time.

If you have more weaknesses in the game than others, skip it. Trade in areas where you have an advantage.

Continuous Improvement

Reflect on each trade: which were successful, which failed, and why? Was it a process/decision issue, or was the decision good at the time but the outcome poor? The goal is to make fewer mistakes in trading, continuously analyze and adjust to improve your trading success rate.

If you skip this step, you will not make any progress and will ultimately find yourself in a mental/profit dilemma in your subsequent trading journey.

Don’t Reinvent the Wheel

Trusted market friends are crucial. They will hold you accountable and help you cover your weaknesses.

The best arrangement is mutual support—you cover their weaknesses, and they cover yours.

Quality over quantity: Having more friends is not necessarily better. You need trustworthy friends with a high success rate, whose level is comparable to or higher than yours in the game you are playing.

Stay connected with other relevant people outside your focused niche. They will help you understand macro trends, cycles, and other events you are currently focused on. This will ultimately feed back into your overall perspective and trading.