The bull market is not the fastest time for retail investors to make money, but rather the time when it returns to zero the quickest.
The reason can be summed up in one sentence:
Money made by luck will ultimately be lost through skill.
The bull market magnifies luck into 'talent', packaging temporary victories as 'ability', and in the end, you will use larger positions, higher leverage, and inferior coins to give back everything you earned earlier.
Regardless of whether the bull market is still ongoing, I hope my brothers stay clear-headed at all times.
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First pitfall: Frequently changing positions.
Seeing others rise, you cut losses and chase gains, only to buy at the emotional peak and sell at the panic bottom.
The bull market rotates extremely quickly; what you chase may just be the peak.
Survival rule: First, layer your positions—core positions should only consist of a few assets you truly understand, that have sufficient liquidity, and can withstand drawdowns; use offensive positions to chase hotspots, but they must be small enough to afford losses.
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Second pitfall: Getting high on leverage.
Earning 20% on spot feels slow, so you think you’re a chosen trader with 10x leverage.
The reality is that spikes in the bull market are the norm; a single 15%-20% flash crash can wipe out your principal.
Survival rule: Stay away from high leverage as much as possible; don't treat liquidation as your stop-loss line; if you must use it, only use a tiny position you’re willing to lose, and strictly enforce stop-loss, position reduction, and take profit.
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Third pitfall: Treating unrealized gains as real money.
The fluctuating numbers in your account bring dopamine, and you become increasingly greedy until the drawdown wipes out all your profits.
Survival rule: Mechanical profit-taking. For example: take out your principal when it doubles; then sell a portion every 20% increase.
Better to sell too early 10 times than to go to zero once.
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Fourth pitfall: Neglecting security.
Clicking random links, signing random authorizations, and interacting with the main wallet everywhere, ultimately giving all profits to hackers.
Survival rule: Keep large amounts in cold wallets; use isolated wallets for interactions; regularly clean up authorizations.
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More deadly is: the bull market will 'reward mistakes'.
You casually buy into doubles and casually leverage without blowing up, mistaking luck for skill, leading you to repeat the same mistake with larger positions until a single needle brings you back to reality.
So prioritize your capital: never let any single asset get heavy enough to lose sleep over; always keep some bullets in the chamber; don’t go all-in and force yourself into a gambling mindset.
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Therefore, at all times, maintain calm and follow these four rules:
Change positions less / Use less leverage / Take profits in batches / Isolate wallets
The goal is not to earn the most, but to survive until the end.
