Having been in the crypto world for nearly eight years, I definitely took some big losses in the contract market in the past two years. Back then, liquidations were not rare incidents; they were part of daily life—fund your account, turn around to get a glass of water, and your position would be wiped out. That sense of despair still gives me a bit of a chill when I think about it now.

It was only later that I realized the market hasn't really changed; what has changed is myself. Being too impatient, too greedy, and too confident—I've fallen into all three traps. Now, I can't say I make huge profits, but at least I haven't experienced a liquidation in a long time.

Here are some patterns I've learned over the years, all lessons bought with real money. I hope they can help you avoid detours.

**Don’t Overbuy When Stuck**

Many people tend to make a mistake once they’re trapped: they throw in more money, hoping for a rebound. Stop. The purpose of adding to a position is to stop the loss, not to dream about making big money. If you approach it with the mindset of chasing huge profits, the countdown to the next liquidation has already begun.

**The Market Is Usually Quiet When It’s Most Deceptive**

If the candlesticks have been consolidating for several days, don’t think there’s no opportunity. Actually, that’s when the market is brewing a big move, especially after a sharp rise, entering a triangle consolidation. It may look strong on the surface, but in reality, it’s just诱多 (诱多 means “trapping more buyers”). The bigger the rise, the more cautious you should be about a pullback—that’s the market’s iron law.

The entry point is crucial: buy when nobody expects it, and consider exiting when everyone is showing off their gains. Don’t chase highs, don’t bottom-fish, and when the market is sideways, hold back. These seem simple, but very few can actually do them.

**Position Size Is Always the First Line of Defense**

Going all-in is like committing suicide in the crypto world. The market changes in an instant, so you must leave some room for maneuver; otherwise, one wrong judgment and you’re out. Without room for error, making money becomes a gamble with your life.

**Your True Opponent Is Human Nature, Not Technology**

No matter how fancy technical analysis is, it can’t beat one word: greed. Greed makes you chase; fear makes you sell. This back-and-forth will quickly wipe out your capital. Those who can survive long-term are the ones who don’t get carried away by profits, aren’t panicked by losses, and steadily move forward.

I’ve seen more pitfalls than most people have seen candlestick charts. These words may sound harsh, but they can save your life. Use these principles to evaluate your trades, and you’ll avoid many traps.

For newcomers, instead of repeating the detours I’ve taken, it’s better to master these life-saving rules and make steady profits. That’s the most practical advice.