In the trading market, success and failure often lie on a fine line. The candlestick chart acts like a sieve, accurately filtering out traders who do not understand how to leverage profits to snowball their gains. I have guided two typical students, whose experiences vividly illustrate this point.

A student started with an initial capital of 6800U and, through clever use of profit rolling, ultimately increased the capital to 42000U. In contrast, another student accurately grasped the market trend but, due to operational errors, nearly lost the entire principal of 20000U. The two completely different outcomes ultimately boil down to one key point: the former used the profits gained as funds for further investment, while the latter recklessly put the principal at risk.

Many retail investors often operate like puppets with pre-set programs: they are eager to close positions when there is a 5% floating profit, only to watch the market continue to rise; conversely, they excitedly increase their positions during a 3% floating loss, resulting in an overweight position that ultimately gets crushed by market fluctuations. Even more regrettably, some traders, despite having judged the correct direction, get stopped out due to a small 0.8% pullback, watching the profits they could have earned gradually slip away.

In contrast, successful traders tend to overcome the weaknesses of human nature and develop a unique trading strategy:

1. They view the profit account as a treasure trove, only withdrawing profits as new investment funds, while keeping the principal permanently locked in a secure cold wallet.

2. Their averaging up operations are as precise as a sniper, only considering using profits to build positions in batches when the candlestick retraces to the 20-day moving average and the trading volume significantly increases.

3. They always ensure that the liquidation line is far from the principal, viewing profits as "infinite bullets," meaning they can restart even after total losses.

Based on years of trading experience, I have distilled these survival rules into three iron laws:

First, treat the principal as a "heirloom" and strictly protect it from being touched. No matter how tempting the market conditions are, you can only operate with the profits already obtained, locking the principal in a cold wallet as the last line of defense.

Secondly, establish a risk management awareness and purchase a "invisible insurance" for the account. This way, even in the worst-case scenario, it can ensure that you will not be completely out of the game.

Finally, maintain a calm mindset and do not be swayed by short-term fluctuations. Remember, the market will never favor anyone; the key is how to respond to market changes, rather than trying to predict or control it.

By following these principles, traders can maintain long-term profits in a volatile market and avoid paying a heavy price for momentary judgment errors.