20 Trading Rules Every Web3 Crypto Trader Needs to Read

These insights are distilled from the mindset of an A8-level trader — each sentence holds immense value.
Rule 1
If I am incorrect, I must exit immediately. As the proverb states, "As long as the green hills remain, there will be no shortage of firewood." Preserving capital is crucial to fight another day.
Rule 2
The primary reason traders consistently lose money is impatience. They neglect their trading principles and enter the market prematurely, before the major trend is evident or before identifying a manageable setup.
Rule 3
Experiencing a setback is painful. After a significant loss, most traders attempt immediate recovery by increasing position sizes to regain funds in one move. However, this leads to failure. The appropriate action is to reduce position size or cease trading. The focus should be on rebuilding confidence, not recouping losses.
Rule 4
When setups meeting your profit criteria diminish, you must wait patiently. If the market moves entirely against your forecast, exit your positions.
Rule 5
Hold profitable positions and cut losing ones. If you cannot retain winning trades, how can you offset losses? Many traders forfeit profits by lacking patience to hold winners while refusing to exit losers.
Rule 6
Overtrading is a frequent error. Traders often enter impulsively upon seeing market movement, without selecting optimal timing. This forces trades instead of waiting for a clear advantage.
Rule 7
Professionals succeed by conducting thorough preparation before entering. Many individuals, after initial profits, become complacent and trade excessively. Subsequent losses can escalate into major drawdowns, potentially erasing initial capital.
Rule 8
Impulsive trades are the most detrimental. Acting on emotion is trading's most destructive mistake. Adhere strictly to your signals; never alter strategy whimsically. Avoiding impulsive actions is fundamental to risk control. Always plan for worst-case scenarios, trade with small sizes, and limit losses to 1–2% of capital per trade.
Rule 9
Maintain composure in trading. The market, like a boxer, can strike unexpectedly. Losses indicate unfavorable conditions; do not rush—proceed cautiously. Minimize losses to preserve capital. After a major loss, emotional instability requires reducing size or pausing trading; take a break before resuming.
Rule 10
Whether experiencing large wins or losses, maintain mental stability. Review each trade daily for rule violations. Analyze successful trades to understand why they worked, and reflect on failures to identify errors. Consistent performance demands deep commitment to every trade.
Rule 11
Most traders understand the principles. True professionals execute them rigorously even in extreme market conditions.
Rule 12
Professionals achieve high win rates by approaching the market with fear and respect, waiting for clear setups before entry. Many enter blindly, guessing market moves. Professionals wait for confirmation, acting only when odds overwhelmingly favor them.
Rule 13
Your trading strategy must adapt flexibly to changing markets. Many traders cling to fixed strategies and complain when markets deviate from expectations. Why expect markets to align with your plan? Life and markets are unpredictable.
Rule 14
Do not let profit euphoria cloud judgment. Sustaining gains is trading's greatest challenge. After profiting, the desire for more can lead to ignoring risks or ceasing self-questioning—accelerating self-destruction. Exercise caution in losses, but even more in wins.
Rule 15
Cultivate self-discipline and capital management. Trade calmly. Exit losing positions; hold winning ones. Focus on minimizing losses, not chasing larger gains. Reduce size or stop when trading poorly; increase size when successful—but never enter blindly without control.
Rule 16
Always trade with prudent caution. Success can arrive swiftly but vanish faster. Destruction outpaces creation—decades of building can unravel in a day. Strict self-discipline is essential at all times.
Rule 17
Many traders gamble with heavy positions. Break this habit. Historically, reckless high-leverage trading leads to failure. Limit each loss to 2% of total capital.
Rule 18
Chart-based trading resembles surfing—you need not understand wave mechanics, only sense the rhythm and seize the right moment. Master timing to ride waves successfully.
Rule 19
Some traders alter systems after losses; others distrust systems and override signals based on bias. Professionals adhere to their systems. Trading aims for victory, not excitement.
Rule 20
True trading masters are gauged not by momentary wins but by sustained success and longevity in the market.
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📱 Welcome to Binance‑iOS — your unofficial hub for everything related to Binance on iPhone and iPad! We bring you the latest app updates, optimized trading tips, guides for beginner‑friendly mobile navigation, and smart use of advanced mobile features. Discover how to trade, stake, and manage digital assets on the go with ease and security. Whether you’re launching your first trade or mastering advanced tools—our content helps you get the most from Binance’s iOS experience. Community‑run. Not officially affiliated with Binance LLP.