Why do some people earn hundreds of thousands per month from contract trading while others frequently get liquidated? The secret lies in execution.

Many people lose so much trading cryptocurrencies that they doubt life itself. The main reason is not the lack of methods, but the lack of discipline. Today, I share a market-tested trading framework, with six core principles running throughout.

**Core Mindset: Cut losses when wrong, hold tight when right, small losses, big gains**

This is not motivational talk; it’s a survival rule.

**Rule 1: Observe the Big Trend**

When the 5-day moving average is above, only go long; when it’s below, only go short. Sounds simple? But most people go against the trend. The result is disastrous. The market has its rhythm—you either follow it or exit. There is no third option.

**Rule 2: The Power of Watering-Down Orders**

The most elegant entry is to find positions with extremely low stop-loss costs and high profit potential. Usually, such opportunities appear at the bottom when the market just starts to move. A stop-loss of only 1 dollar, but with a 10x return potential? That’s not a dream; it’s a probability game. If you’re wrong, you lose a meal’s worth; if right, you land a big deal.

**Rule 3: Speed of Cutting Losses Determines Survival**

Once a key support level is broken, cut immediately. Don’t fall in love with your position—that’s the start of losing money. If after cutting, the market reverses and comes back? Re-enter. It’s a thousand times better than getting liquidated at the bottom.

**Rule 4: Adding Positions Is a Technical Skill**

After making the first profit wave, wait for the price to retrace to a key support level before adding. But here’s a trap—many people add more when the price is falling, making it worse. Wrong. Risk management for adding positions should be as cautious as opening the first trade, or even more so.

**Rule 5: Trailing Stop to Protect Profits**

Every time you add to your position, move your stop-loss up. In the end, only profits are running; losses are locked in. That’s how you can sleep peacefully.

**Rule 6: Let Profits Run**

Don’t rush to sell at a 10% gain. People who do that always make small money. The real big gains come from accelerated rises in later stages. When clear signs of a top appear—such as declining volume or technical divergence—close all at once.

These six rules seem simple but are difficult for nine out of ten people to execute. Losing control of your hands, frequent trading, constantly guessing based on position info, chasing highs and selling lows… the result is an account eaten away like chopping chives.

True experts never care about how many trades they make. They care about the risk-reward ratio of each trade. Less than ten trades a year, but each one carefully considered. Once executed, they patiently wait for the results.

People with strong execution skills find making money is simply a matter of time. Their account balances grow like riding a rocket. Now, it’s up to you.