The people who can truly survive and make money in the crypto and stock circles are not relying on complex indicators or sophisticated strategies, but rather mastering simple principles to the extreme.

2025lovepeace

2026-01-23 01:11:52

Those who can truly survive and make money in the crypto and stock circles are not relying on complex indicators or advanced trading strategies, but on mastering simple principles to the extreme. If you follow these nine rules, you’ll be more stable than most:

When the crypto stock price surges, keep an eye on major shareholders reducing their holdings—if insiders are cashing out, don’t be the next bagholder. When crypto stocks skyrocket and are hyped as “Godly Crypto Stocks” on hot lists, first check the movements of major shareholders. If the actual controllers or executives are heavily reducing their positions at high levels, no matter how compelling the story, stay calm and decisive. If even those who know the company best are fleeing, you should be even more cautious—don’t rush in. Last year, a leading energy storage stock doubled from 20 to 45 yuan, then major shareholders announced reductions for three consecutive days. Many influencers still claimed the “main upward wave has just started,” but a month later, the price halved to 22 yuan, trapping many retail investors who bought high. The essence of chasing highs is using your own capital to gamble whether the big players will leave you a way out.
Never invest in companies that don’t pay dividends long-term—even if they are profitable—because their cash flow is hiding big issues. Some companies show profits on paper but never pay dividends or pay very little; this could be due to fake cash flow, appearing profitable but actually lacking funds, or because the company’s scope is small and unwilling to reward shareholders. Truly high-quality companies prove their strength through dividends.
Avoid chasing stocks that have risen too high— the more they surge, the harder they fall. Be cautious of stocks that have gained 50% in the past two or three months or doubled/tripled over the past one or two years, regardless of how good the story sounds. Like a friend who bought a certain railway crypto stock last year after it had already risen for many years; he’s still down over 20%.
View news in reverse—good news is often used to sell, not to chase. When bad news appears, look for opportunities that might be misjudged. When positive news floods the internet, it’s often a signal that the main players are offloading; chasing at this point will trap you. Conversely, during sudden negative sell-offs, stay calm and analyze—if the company’s fundamentals are intact and only sentiment-driven decline, it’s a chance to buy the dip.
When prices are rising, only think about selling; when prices are falling, only think about buying. 90% of retail investors fall into this trap: they get greedy when prices go up, trying to earn more, but end up with floating losses; they panic when prices fall, wanting to cut losses and exit, but often sell at the lowest point. Remember: market movements are about the market; your buying and selling decisions are yours. Set your take-profit points in advance and sell when reached; trigger your stop-loss when the price hits your limit and exit decisively—never let emotions control you.
Understand the cycle—trading crypto stocks is essentially betting on cycles. There are no forever bull or bear crypto stocks; industries rise and fall, and crypto stock prices follow cycles. Between 2022 and early 2023, bank-related crypto stocks quietly doubled or tripled, while core assets like liquor fell 30-40% from their highs. Cyclical stocks like non-ferrous metals, steel, and chemicals, which had been declining for years, are now entering a sustained upward cycle for over a year. Your strategy should be to buy slowly when no one is paying attention and sell calmly when everyone is talking.
Never borrow money to trade crypto stocks. Invest no more than 20% of your total assets, only use idle funds, and even if you get trapped, it won’t affect your life—this is the only way to hold on and sleep well. Leverage amplifies not only gains but also risks and fears.
Always withdraw your profits—cash out to secure your gains. Money that remains in your securities account is just a number. How many people have doubled their profits but then lost everything again, even losing their principal? Always withdraw a portion of your profits and appropriately transfer them back to your life. This is your real harvest. The remaining funds can then be played with in the market, and your mindset will be completely different.
And most importantly, always control your position size and keep enough cash on hand! Never go all-in; even if you are very optimistic about a stock, keep at least 20% in cash. When the market is good, cash is your ammunition for adding positions; when the market is bad, cash gives you the confidence to bottom fish; during black swan events, cash is your safety net.

Trading crypto stocks isn’t complicated; what’s complicated is human greed and fear. Embed these nine iron rules deep in your bones, and you’ll already be ahead of 90% of retail investors—after all, few can truly control their hands and follow the rules. The core of making money in crypto stocks isn’t about “picking the right stocks,” but about “making fewer mistakes.” Avoiding one pitfall makes you stronger than most.

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