I have summarized eight iron rules, and I remind myself to abide by them every day so that I can survive the big drop.

1. **Don't just stare at the K-line chart to enter the market**

When entering the market, you should not only look at the K-line trend, especially when doing short-term trading, but also pay attention to the 30-minute K-line chart, and at the same time ensure that the market has stabilized and resonated. For example, sometimes you see a K-line with a long upper shadow and think there is no chance, but the next day it pulls out a big sun or even a daily limit. If you looked at the 30-minute K-line chart at the time, you will find the mystery.

2. **Trend and order are the key**

When the trend and market order are wrong, it is a mistake to look at it more. Going with the trend and not disrupting the market's rising order is the key to success.

3. **Hot spots are the king of short-term trading**

If there is no opportunity to participate in hot spots or potential hot spots, it is better not to do short-term trading.

4. **Give up impulse and follow the plan**

Impulsive entry often leads to mistakes. Remember to trade your plan and plan your trades.

5. **Independent thinking is essential**

Anyone's views or opinions can only be used as a reference. You must have your own careful consideration and serious analysis.

6. **Direction is more important than choice**

Determine the direction first, then select the currency. If the direction is right, you will get twice the result with half the effort; if the direction is wrong, you will get half the result with twice the effort.

7. **Only intervene in the currency on the way up**

Guessing the bottom is a big taboo in trading. I always feel that the rebound is just around the corner, but the market may still have a final shock. The price of the currency usually moves in the direction of least resistance, so choosing the currency that is rising means that you have chosen the direction with least resistance.

8. **After a big profit or a big loss, go short first and then make a move**

After a big profit or a big loss, you must calm down and look at the market and yourself with an empty position. After sorting out the reasons, the probability of success will be higher. In many years of trading, I found that the success rate of short position adjustment after a big profit or a big loss is over 90%.

Follow these iron laws to avoid storms in the currency circle again and again and keep moving forward.