“I saw this wave of growth coming early!”——Is it you?
Staring at the K-line at three in the morning, the analysis report fills three pages, and the market trend is exactly as you predicted. But turning to look at the account, it's either stuck in place like someone hit the pause button, or it shrinks all the way down worse than a waterfall.
I have been struggling in this circle for eight years, and I have seen too many brothers who went from BMWs to shared bikes, none of whom failed due to market judgment——those who went all-in on small coins ended up with zero in their accounts, those who lightened their positions in a bull market ended up with broken legs, and those who were fully invested in a bear market could only play dead.
Don't blame bad luck or criticize the major forces; what truly threatens your life is your 'reckless' position. There has never been a 'sure-win master' in the crypto market, only survivors who can endure until the next market wave, and position management is your only bulletproof vest through bulls and bears.
Today I'm giving you the ultimate life-saving iron rule. Remember, don't let your capital die before dawn.
First iron rule: Capital is your father; profit is your child.
The dumbest move I've seen is betting your entire fortune on a 'hundred-fold myth.' Listen to me: the loss in a single trade must be capped at 2%-4% of your capital. For example, if you have 100,000 in capital, if you lose 4,000 in a single trade, stop immediately—money can be earned back, but if your capital is gone, the next market wave has nothing to do with you.
Second iron rule: Volatility is a wolf; don’t be a sheep.
How crazy is the volatility in this circle? It's 2 to 3 times more intense than the stock market. A 20% rise one day and a 30% drop the next are common. Therefore, your position must be more conservative by at least 30% than in stock trading; don't bring that 'buying on dips' mentality here, it's no different from running naked into a typhoon.
Third iron rule: Change positions with the market; don't be stubborn.
In a bull market, you should earn clearly; having a position of 50%-70% is fine. But when a bear market arrives, you must cut your position to under 30%, and keep the extra money in hand for peace of mind. Additionally, the holdings of mainstream coins and small coins should be calculated separately, and high-risk varieties should not occupy too much share.
It's not enough to just talk about the iron rules; give the new brothers five tips to get started, and following them can help you survive a few more rounds of the market.
One-third position building method: Divide your capital into three parts, first use 10% to test the waters, after the trend is clear, add 20%, and keep the remaining 20% as 'emergency funds'; don't throw it all in at once.
Risk weighting method: Mainstream coins (like BTC, ETH) should occupy at most 25%, and individual small coins should not exceed 5%. For leveraged positions, be even more frugal; the capital proportion must not exceed 10%.
Stop-loss reverse method: First, decide the maximum loss you can accept, for example, set a 6% stop-loss line. Calculate how much to invest with 'maximum allowable loss ÷ 6%', leaving a buffer to avoid being swept out by short-term volatility.
Cycle with the changes: In a bear market, use 5%-8% for testing, and if you lose, it won't hurt; in the early stage of a bull market, increase to 50%-70% to earn returns. When everyone is shouting that '10,000 points are not a dream,' quickly reduce to a 30% cash position.
Emotion locking method: Write a plan before trading, set entry points, stop-loss points, and positions all in advance. Don't let a single variety's position exceed 20%, and if you lose three times in a row, stop and review; don't gamble against the market.
