Surviving is more difficult than making big money. This is not just motivational talk; it's the truth about contract trading.

From repeated early losses and liquidations, I have developed a set of survival rules. Beginners who follow these have ultimately survived. I hope these four ironclad rules can help you avoid detours.

**The first trap of adding positions: Never add when in a loss**

When first entering contracts, many want to add positions at the slightest opposite move, thinking it will lower the average cost. But what happens? You end up losing even more. My current principle is very strict: as long as I am in a loss, I ask myself—"If I close my position now, would I dare to re-enter?" If not, I immediately exit or even reduce my position. Adding to a losing position is gambling, and the cost of that gamble is liquidation. Only consider adding when in profit, as the odds are on your side.

**Understand the market rhythm**

Don’t panic during sharp drops in the early session. Crypto markets often show deep V-shaped rebounds, and those rushing to cut losses often sell at the bottom. But a sudden surge at the end of the session is usually a trap to lure more buyers; the probability of a pullback the next day is high. At this point, decisively reduce your position to lock in profits. Also, don’t forget this signal—low volume with small positive candles indicates a bottom, with shrinking volume but slight price increase. Big money is lurking behind this.

**Use two moving averages to determine trend**

Don’t get caught up in complicated indicators; mastering the 5-day and 20-day moving averages is enough. If the 5-day MA holds, the short-term trend is stable; if the 20-day MA holds, the medium-term trend is stable. Once the price falls below these averages, don’t hesitate—exit immediately. The market isn’t about emotions; discipline is what matters.

**Hard stop-loss and take-profit indicators**

These two are life and death lines: if losses exceed 10%, cut without hesitation. If profits exceed 20%, take profit when a 5% retracement occurs; if profits exceed 30%, close when a 10% retracement happens. Profits in crypto come quickly, but being able to hold is true skill. Letting greed destroy your account is not worth it.

Final words: Discipline is the tool that keeps you alive. These rules may seem simple, but few truly follow them. Market opportunities are endless, but if your capital is gone, no matter how big the trend, it’s irrelevant to you. Turn these rules into muscle memory, and making money will come naturally.