Recently, I was mentoring a student in trading, and he asked me what my biggest insight was. After thinking for a while, I said: The ones who truly make money are often not those who understand indicators the most thoroughly.

Have you ever seen this situation? Some traders stare at all kinds of technical indicators every day, study candlestick charts more than their own face, yet their account keeps going down. On the other hand, there are some people who seem to know nothing, but just stick to the rules steadily, and gradually build up their principal.

Last month, this student I mentored started with 4,200 and has now grown it to 68,000. Throughout the process, I never once taught him how to read MACD, nor did I teach any advanced technical analysis. I just helped him develop three of the most basic trading habits—honestly, these things might be more effective than any indicator.

**First habit: Position control is the real skill**

At first, this student was very impatient, always wanting to go all-in on a coin. I told him: This isn't trading, it's gambling.

When the market direction is unclear, I told him to use at most only 10-20% of his position to try. Consider it as paying tuition to see where the market is heading. When a real trend emerges—like a coin breaking through an important resistance level and holding steady on a pullback—then add positions in stages up to 50-60%.

Think about it, how many people fall because of this word "impatience"? They see the price rise a bit, think the opportunity has come, and go all-in expecting to double up. Then the market pulls back, and their account gets cut in half. The crypto market is already highly volatile, so give yourself some leeway. In case you read the direction wrong, at least you have room to maneuver.

**Second habit: Don’t stubbornly hold onto losses, but hold onto your profits**

This sounds simple, but it’s really hard to do. When this student first started, if the coin he bought dropped 5%, he would immediately ask me whether to average down and lower his cost.