In the crypto market over the years, I have seen too many people complicate trading. Things like MACD, Fibonacci, and various indicators piled up, as if the more tricks you learn, the more professional you become. Little do they know, those who can truly survive in this market are often the ones who maintain discipline and manage their funds well.

There is an example that best illustrates the issue. A trader initially entered the market with only 4200, and at that time, he was confused by the candlestick charts and didn't understand how to set stop losses. Later, through the system's position management method, his account grew to 68,000. His realization is that a few dead rules are more effective than spending three years learning various indicators.

Ultimately, technical analysis is just a stepping stone. What determines victory or defeat is whether one can restrain their desire to operate and emotional fluctuations.

**First Iron Rule: Scout first, then become the main force**

The most common way to incur losses is to see a hint of a market trend and then go all in, only to be trapped by a direct pullback. This mindset of "being afraid of missing out if you don't enter the market" has harmed so many beginners.

The correct approach is: if you are optimistic about a certain cryptocurrency, don't go All-in right away. Take out 10-20% of your funds as scouts to test the market's real reaction. Once the price breaks through critical support/resistance levels and the trading volume significantly increases, that is the real signal. At this point, you can follow up in three batches, with the key being that each batch's amount should decrease— for example, the first investment is 30% of the remaining funds, the second batch 20%, and the third batch 10%.

The beauty of this rhythm lies in the fact that: if the first judgment is wrong, the loss is limited and does not hurt the vitality; if the direction is right, it can continue to average down, flattening the cost. The market is always full of opportunities; what is lacking is the capital to survive until the next opportunity.