Farewell to the Chives: Survival Rules I Learned from 7 "Pits" in 3 Years in the Crypto Market

Original Title: Trading Crypto for 3 Years Taught Me These Hard Lessons --- Here's What I Learned.

Original Author: Paul G

Original Translation: Baihua Blockchain

If you ask me what my biggest takeaway from three years in the crypto market is, I would tell you it’s not the thrill of soaring prices or the panic of crashing ones, but the profound lessons brought by countless "pits."

Three years ago, I entered the market with dreams of overnight riches, imagining a path to financial freedom. But reality, like a cruel teacher, taught me what it means to respect the market through one pitfall after another.

In these three years, I feel like I’ve gone through a thrilling jungle adventure, and these 7 "pits" are the map and compass I earned with real money.

The Trap of Overtrading: The Lesson That Less is More

When I first started trading, I was obsessed with staying "active."

Every candlestick felt like an opportunity, and every rise seemed like a chance to make big money. But I quickly realized that trading more often doesn’t equal more profit.

In fact, frequent trading often left my wallet lighter and my regrets heavier. Remember when I said I felt I had to participate in every trade? Yes, that mindset almost cost me everything.

Trading more often does not equal more profit.

Looking back, I found that doing nothing was often the smartest choice. If the market hasn’t given you a clear edge, why force a trade?

Would you rather make five mediocre trades or wait for one excellent opportunity?

Now the answer is obvious, but I learned this lesson the hard way with real money. Trading out of boredom is like chasing a rising price without doing research—it's a recipe for disaster.

Fatigue is the Enemy of Trading

I wish someone had drilled this into my head earlier: never trade when you’re fatigued.

I once thought I could stay up all night watching charts, observing the market like an eagle.

Well, I was wrong.

My decisions became as unreliable as a bug-ridden smart contract. Honestly, how many successful trades have you made after staying up late?

That’s right, almost none.

Decision fatigue can hit harder than a flash crash. When you’re exhausted, your brain takes shortcuts, and those shortcuts often lead directly to wrong decisions.

Don’t trade when you’re fatigued.

I’ve lost count of how many times I stubbornly refused to take a break, broke my stop-loss, and ignored risk management. Now, I treat sleep as a non-negotiable rule. If I’m not feeling well, I don’t trade.

Don’t Break Trading Rules Lightly

One of the hardest lessons I learned is that rules are not just guidelines; they are lifelines.

In the early days, I thought I was smarter than my trading plan. “Just this once,” I would comfort myself, moving my stop-loss or increasing my position.

Sound familiar? It should, because every trader has experienced such moments.

But the truth is: your rules exist for a reason. They are distilled from painful lessons.

Breaking the rules is like having no strategy in a bear market—being destroyed by the market is just a matter of time.

Discipline isn’t about perfection; it’s about doing the right thing even when it’s uncomfortable.

I gradually realized that the best traders are not those who never make mistakes, but those who can stick to their rules even when they do.

Emotional Rollercoaster: Manage Your Mental Energy

Now, let’s talk about something most traders overlook until it bites back: mental energy.

Have you ever found yourself in a losing streak, where every trade is worse than the last? I have, and it feels like trying to recover from a Rug project.

Sometimes, the best choice isn’t to make another trade but to completely step back.

This lesson hit me hard during a particularly tough time in my trading journey. I kept adding to losing positions, thinking I could force a turnaround.

What saved me in the end? Taking a break.

Walking away gave me the clarity I needed to start fresh. After all, if your mind is as chaotic as a hacked exchange’s funds, what good is technical analysis?

Risk Management: The Simple Secret to Survival

Let’s be realistic—risk management might not sound sexy, but it’s the foundation of successful trading.

Most traders focus on entry points as if they are the holy grail, but the exit point is where the real magic lies.

Have you ever made a perfect entry trade only to give back all your profits (or more) because you had no exit plan? Yes, we’ve all been there.

Position size, stop-loss, and risk-reward ratio may not be glamorous, but they are the basics for survival in the cryptocurrency market.

Think about it: do you want ten small wins or to endure one catastrophic loss that wipes out your account?

The choice seems obvious, but too many traders overlook these fundamental principles.

Remember, in cryptocurrency, surviving is winning.

The Monster of Self-Inflation: Stay Humble in Bull Markets

One of the hardest truths to accept is that the market doesn’t care about your ego.

Nothing inflates a trader’s ego more than a big win. Suddenly, you feel like you can predict tops and bottoms like a prophet, convinced you’ve cracked the market’s code.

But reality will hit you hard—the market always finds a way to remind you who’s boss when you least expect it.

After making some decent profits early in my trading career, I started to feel omniscient.

Fast forward to the next cycle, and my “sure-win” trades were ruthlessly crushed by the market.

The market owes you nothing; staying humble is the only way to stay in the game. Trust me, your pride isn’t worth risking your portfolio.

The Illusion of Advantage: Knowing When to Sit Out

This is a somewhat controversial viewpoint—sometimes, your biggest advantage is knowing when not to trade.

Too many traders force bets in areas where they’re not skilled, thinking they must stay active at all times. But ask yourself: would you rather make a mediocre trade or wait for your opportunity?

I’ve set a simple rule—if I can’t explain my edge in one sentence, I won’t trade.

This approach has saved me from countless poor decisions. Remember, the market won’t run away. Opportunities will always be there for those who are patient and disciplined.

Conclusion

Ultimately, successful trading isn’t about flashy victories or overnight riches. Its core lies in consistently avoiding mistakes and preserving capital when the odds are truly in your favor.

Every point I’ve shared comes from my personal experience and painful lessons.

So, the next time you feel the urge to make a reckless trade or ignore your rules, remember these principles.

They may not guarantee you instant success, but they will help you stay in the game long enough to seize some real opportunities. After all, in the world of cryptocurrency, perseverance is the ultimate winning strategy.