I have exchanged my hard-earned money for 12 survival rules—suitable for every ordinary person who wants to live longer.
1. The principal is the lifeline; only by staying alive can you output
I once had an account with 100,000 as principal fully invested in contracts, and a single pullback wiped it out completely. It wasn't until later that I understood: the principal is 1, and the profits are the zeros that follow. Without the 1, having more zeros is just talk. Now, my single loss will never exceed 5% of my total capital, even if I lose 10 times in a row, I still have the confidence to recover. Don't treat your principal as a bet; it's the only chip you have left on the table.
2. Greed is poison; slow is fast
In the 2017 bull market, I tripled my investment in altcoins in a week. My greed prevented me from taking profits, and as a result, I lost all my gains in three days during the bear market. A bloody lesson taught me: earning a steady 10% every month can triple your investment in a year; pursuing a double every month has a 90% chance of backfiring. The market specializes in punishing those who don't comply; it's more practical to earn the profits you can manage than to fantasize about getting rich quickly.
Three, position management > timing ability.
In my early years, I was obsessed with 'going all in', losing sleep when the market rose and collapsing when it fell. Later, I learned: always operate with diversified positions, never exceed 10% in a single asset, and keep 30% cash as a reserve. For example, using the '343 phased buying method' — 30% to test, 40% to average down, 30% to add more once a trend is confirmed. Don't panic when the market dips; there's support when it rises. This is the mindset for withstanding volatility.
Four, a stop-loss is armor, not a shame.
Stop-loss is like wearing a seatbelt while driving; it's often seen as a hassle, but it can save your life in an emergency. I have seen too many people stubbornly hold onto losses of 10% until they turn into 50%, ultimately cutting losses at the floor. My rule is simple: set a stop-loss line (-3%~5%) before opening a position, and when triggered, exit without any hope of recovery. Remember, a stop-loss protects your life; opportunities can be found again.
Five, profits are rewards from the market, losses are within your control.
In a bull market, everyone thinks they're a stock god, but it's during a bear market that you see who is swimming naked. My current mindset is: be grateful to the market when I profit, and reflect on the system when I lose. For instance, I strictly execute stop-losses, leaving how much I can earn to the market, and I don't force myself to 'eat the whole fish'. This mindset can help me avoid arrogance and prevent profits from turning into losses.
Six, waiting > random trading; patience is the top talent.
I used to trade 10 times a day, with fees higher than profits. Later, I discovered that experts spend 80% of their time waiting and 20% executing perfectly. For instance, during Bitcoin's sideways movements, I would relax with tea and watch until a key level was broken before acting. The cryptocurrency market is filled with opportunities; what's lacking is the patience to wait for them.
Seven, emotions are the graveyard of retail investors.
Panic and greed are amplifiers of loss. In 2021, BTC fell from 60,000 to 40,000, and my account showed a floating loss of 20%. At that time, emotions screamed 'cut losses fast', but the system indicated that the trend had not broken. After gritting my teeth and holding on, the price rose back to 60,000 in 3 months, with an additional profit of 30%. Using conditional orders instead of manual trading allows rules to isolate emotions, which is key for long-term survival.
Eight, don’t touch coins you don’t understand; focus on the mainstream.
Altcoins can be highly tempting with their volatility, but the risk of going to zero is even higher. I now only trade mainstream coins like BTC, ETH, SOL, and I don't touch those whose white papers I've not thoroughly read or communities that lack vitality. Earning money within your understanding is much more solid than chasing trends.
Nine, extremes must be wary; pay attention to extreme market conditions.
When the market rises crazily, a pullback is inevitable; when it falls sharply, a rebound is certain — this is an iron law in the crypto world. While others shout 'Bitcoin has broken 100,000', I gradually take profits; when the market panics and cuts losses, I buy in batches. Operate against human nature and trade with the trend to avoid becoming fodder.
Ten, securing profits is key; paper profits ≠ real wealth.
I once had a paper profit of 2 million, but I didn't sell waiting for a higher point, and as a result, I lost half of my profit during a pullback. Now my principle is: take partial profits when targets are reached, and set a moving stop-loss for the remaining. Money in hand is what counts; otherwise, it's just a number.
Eleven, focus less on the market, more on reviewing trades.
Candlestick patterns won't change direction just because you stare at them longer. I only look at the market for 2 hours a day; the rest of the time, I review my trading records: Why did I buy? Why did I sell? Did I execute according to plan? Delivery records are the best teachers as they expose your weaknesses.
Twelve, a system is your moat.
Technical indicators can be learned, but what keeps you alive is a closed-loop system. My system is simple: go long above the 60-day line, stay in cash below it; manage positions using the '343 rule'; and take a forced break when emotions are out of control. Sticking to an effective set of rules is more useful than chasing the holy grail.
Sister's heartfelt words.
These 12 iron laws each come with the lessons I've paid for. There's no myth in the crypto world, only ordinary people who survive. The real secret to making money is not how accurately you predict, but how you stop losses when you're wrong and how you hold onto profits when you're right.
If you find yourself stuck in a cycle of losses, consider asking yourself three questions:
Is your position out of control?
Is the stop-loss being executed?
Are you trading based on emotions?
Give up greed, anger, and ignorance, and use rules to combat human nature. Time will reward those who 'can endure and hold on'. Follow Ake to learn more about first-hand information and precise points in the crypto world; become your guide in this space, as learning is your greatest wealth!#巨鲸动向 #加密市场观察 $ETH
