After many years observing the trading market, I’ve discovered a pattern: those traders who last the longest generally follow the same logic.

First, you need a guiding line. No matter what coin it is, in a bull market, trade along the moving average upward; in a bear market, follow the moving average downward. Many people like to operate against the trend, thinking they are clever, but most end up being slapped in the face by the market. The moving average represents the trend itself; going against it is gambling.

Second, don’t stubbornly hold onto your position. This point is especially critical—the larger the moving average timeframe, the lower your position size should be. The farther the price is from the moving average, the smaller your position should be. This isn’t cowardice; it’s respect for volatility. Many do the opposite—adding to their position when the price is far from the line—which paves the way for liquidation.

The last bottom line: don’t add to losing positions. Averaging down sounds smart, but in reality, it’s using compound interest to turn small losses into big ones. Once this habit forms, you’re not far from liquidation.

Looking at accounts that get forcibly liquidated, what do they have in common? No awareness of the moving average, frequent counter-trend trades, excessively large positions, and still adding to their positions. It’s not that they don’t understand trading; it’s that they don’t understand the true nature of risk.