I'm not a big trading influencer, I don't sell courses, and I don't charge agent fees. I'm just an experienced investor who has fallen and gotten back up in the market, and I've been immersed in the crypto world for eight years.

Last year, a friend came to me with $1500, hoping to recover previous losses. I didn't tell him any complicated technical indicators; I simply shared three survival rules I derived from my painful experiences. As a result, after three months, his account grew to $50,000, and he never experienced a margin call. Whether these three rules can save you depends entirely on how much reverence you have for the market.

**First Rule: Three-Fold Capital Allocation, Capital Preservation Comes First**

I told him to divide the $1500 into three parts, $500 each, and not to use a single cent of that for personal expenses. This lesson came from my own full-margin blow-up and sleepless nights.

The first $500 is for attack — at most two trades per day. Once done, exit the trading platform. You'll find that the longer you stare at the charts, the more itchy your hands become, and the stronger your desire to chase trades — that’s a sign of losing money.

The second $500 is for waiting — if the weekly chart shows no signs of bullish momentum or no breakout at key levels, stay silent. Many people trade frequently in choppy markets, which is essentially giving away money.

The third $500 is insurance — used to patch up when the market suddenly strikes against you or your account nears liquidation. It helps preserve your chips to stay in the game. A margin call is like losing a finger; losing your entire principal is like having your head chopped off — without capital, even the best opportunities are useless.

**Second Rule: Focus on One Wave, Pretend to Sleep the Rest of the Time**

In my youth, I fell too many times in choppy markets — nine out of ten trades got cut. Later, I realized that making money isn’t about trading often, but about choosing the right trend.

Enter only with three signals: if the daily moving averages are not arranged in a bullish order, stay completely out — don’t fear missing out; the market never sleeps. If the price breaks previous highs with increased volume and closes above that level on the daily chart, then try a small position. When profits reach 30% of the principal, take half off the table for safety, and leave the rest to the market to test — greed for a full rally often results in losses.

**Third Rule: Write a Fixed Plan, Execute Coldly for Longevity**

Before each trade, write a detailed plan and execute it mechanically, without hesitation for even half a minute. Once the stop-loss is set at 3%, it should be automatically triggered when hit. Don’t keep thinking “wait a bit,” because “waiting a bit” is how your account slides toward liquidation.

When profits reach 10%, tighten the stop-loss to the cost basis, so even if there’s a pullback afterward, you won’t lose. All subsequent gains are free dividends from the market, which naturally stabilizes your mindset. Turn off your trading app at 11:30 PM every night. Don’t look at the candlestick charts, no matter how tempting. If you find it hard to control yourself, just delete the app — the more you stare at the charts, the easier you are to be emotional-driven. When emotions dominate your decisions, mistakes become inevitable.

These three rules sound simple, but very few people can truly follow through. Stay persistent, and the market will reward you.