After spending a long time in the crypto world, I gradually understand a principle—most people's losses are not because the market is too difficult to understand, but because they always try to fight against their own mentality.

Especially for small-cap traders, the pitfalls they encounter are almost all self-inflicted. Sharing a few lessons learned with real capital.

**Itching to trade is the first killer**

Feeling like missing out if you don't make three or five trades a day? Actually, the real difference-maker is the one or two key market moves you catch in a year. When you're idle, just be idle—don't let your fingers make decisions for your brain.

**Always keep some cash**

Not only for adding positions but more importantly to stabilize your mindset. No money in hand leads to anxiety, and anxiety makes your mind chaotic. The more chaotic, the more you trade; the more you trade, the more you lose. With cash on hand, your mentality naturally stays calm.

**Don't touch what you don't understand**

Don't always hold the idea of "just trying," as that's the fastest way to lose money. Simulated trading and real trading are two completely different worlds. When placing real orders, emotions are amplified infinitely—it's not the same as practice.

**Clarify the logic before acting**

I've seen too many people rush into trades without understanding, only to panic after getting trapped. Think through your trading logic thoroughly—this can help you avoid over 80% of the pitfalls.

**Be cautious of news**

When good news becomes widely known, the market often has already reached the tail end of its phase. A gap up doesn't necessarily mean an opportunity; it could be someone else's exit point.

**Be conservative before holidays, and be cautious if trading volume shrinks**

If trading volume dries up before and after holidays, prices tend to fluctuate oddly. Instead of staring at the screen and suffering, give yourself a clear-headed break.

**Adjust strategies according to the cycle**

For mid-term trading, patience is key—buy in stages during dips, slowly sell during rises. Always keep some reserves to avoid panic; for short-term trading, only choose actively traded assets. Less popular coins are easy to buy but hard to sell. Slow declines still have room for adjustment; rapid crashes require quick entry and exit—hesitation will only lead to being taught a lesson in reverse.

**Stop-loss is respect for yourself**

Stop-loss essentially means admitting "I might be wrong." As long as your principal is still in the account, opportunities will never run out.

**Limit technical analysis**

The few commonly used indicators are enough; more complex doesn't mean more effective.

**In the end, everything comes down to self-control**

Reduce impulsiveness, trade less frequently, and don't think about overnight riches. By doing these, you at least can stand firm in the market.