Under the lights of the exchange in the deep night, I looked at the only 8,000 U left in my account, my fingers trembling slightly. This is not the story I wanted, but fortunately, this is not the end of my story.
“If I had known, I wouldn’t have listened to those 'full warehouse charge' nonsense!” Three months ago, I choked up and said this phrase in front of my phone screen. At that time, I jumped into the cryptocurrency market with 60,000 U, but in the anxiety of chasing highs and cutting losses, I watched helplessly as my assets shrank to only 8,000 U. Sleepless all night, feeling like the money was just gone, and what was more riddled than my wallet was my confidence.
A seasoned trader friend told me: “Forget about 'recovering losses', first learn 'survival'.” Then, she forced me to follow a set of the most “foolish” rules. Today, my account assets have exceeded 200,000 U. No one knows the extreme self-discipline behind this, and I will share this transformative experience with you in this article.
From Despair to Awakening: The Birth of My 'Survival Principles'
The first lesson in the crypto world is that the market specializes in treating various forms of defiance. I once thought I was an exception among the chives, but the market taught me with ironclad facts: I am just one member of the chive army.
When my assets shrank to 8000 USDT, I truly understood what 'risk control' means. It's not just talk; it's discipline ingrained in the bones. I set four iron rules for myself:
No trade exceeds 20%-30% of the principal, never over-leveraged; take profits of 10%-20% immediately, never look back; exit unconditionally at a 5% loss, never hold the position; only trade trends I understand, don’t guess bottoms or chase highs.
This method seems simple, but executing it is exceptionally difficult. I remember once watching a popular cryptocurrency soar in front of me, my hand hovering over the trading screen, struggling internally for a full ten minutes, ultimately deciding not to chase it. Sure enough, an hour later, it plummeted by over 30%. At that moment, I became more convinced: in the crypto world, surviving is more important than making quick money.
The 'Four Pillars' of the Trading System
Through exploration, I gradually formed my own trading system, which is built on four core pillars:
The trend is your friend. I began to learn to follow the trend rather than try to fight the market. Look for direction on the weekly chart, find entry points on the daily chart, and monitor segments on the 4-hour chart. When the weekly MACD shows a golden cross and moving averages are in bullish alignment, even if the daily chart retraces, I must hold; conversely, if the weekly shows a death cross, a daily rebound signals an exit.
Signals outweigh feelings. I rely on the combination of 'moving averages + MACD + trading volume': a 5-day moving average crossing above a 10-day moving average is a buy point, a death cross is a sell point; MACD bottom divergence indicates a buying opportunity, top divergence requires reducing positions; when trading volume exceeds three times the previous high, it often signals a trend reversal.
Emotional firewall. The crypto market trades 24/7, with news flying everywhere, making it easy to be swayed by emotions. I once chased prices out of 'fear of missing out' and ended up at the top of the mountain; I also cut losses out of 'fear of falling' and missed the rebound. Later, I developed an iron rule: formulate a plan before the market opens, close market software during trading, and only operate based on signals.
Risk control is the lifeline. I adhere to the principle that 'only invest what you can afford to lose.' No single cryptocurrency position exceeds 20% of total capital, and the stop-loss is set at 5% below the purchase price; if it falls below that, I exit unconditionally.
Psychological game: Overcoming greed and fear
The hardest part of the crypto world is not the technology, but human nature. I once sold early out of 'fear of missing out' and missed a tenfold increase; I also stubbornly held onto altcoins out of 'unwillingness' and ultimately lost everything.
Loss aversion is the biggest psychological trap. Psychologists have found that the pain of loss is about 2.5 times greater than the pleasure of equivalent gains. This asymmetrical emotional response is amplified to the extreme in the crypto world.
To overcome this, I developed two habits: write a trading plan before every operation, including purchase price, stop-loss price, and target price; withdraw the principal after profits exceed 50%, using the profits to continue trading; and force myself to stop after three consecutive losses to avoid emotional trading.
The herd effect can also be deadly. As social animals, we naturally tend to pay attention to group behavior. In the crypto world, this manifests in being easily influenced by the choices of the majority, thinking 'everyone is buying, there must be a reason.' But the truth is, the market always sees a minority making money while the majority lose.
Practical strategies for small capital to turn around
For small capital, I adopted a three-phase strategy:
The first phase is stable accumulation. I no longer chase every hotspot but focus on a few mainstream cryptocurrencies that I truly understand. Bitcoin, Ethereum, and others verified by the market become my core holdings.
The second phase is regular reviews. I insist on reviewing every day, filling my trading journal with self-warnings like 'don’t be greedy' and 'stop-loss.' I even set a timer on my trading software to lock it, just to control that impulsive hand.
The third phase is to lock in profits. When the market rises, I always recoup my principal and part of my profits first, and only then do I let the remaining funds continue to fluctuate with the market. This strategy maximizes profit locking, preventing sudden market fluctuations from 'evaporating' previous profits.
My personal insight: Leverage is an amplifier of cognition
In this process, I gained a new understanding of leverage. Leverage can amplify profits by 10 times or 100 times, but it can also cause losses to drop to zero in an instant.
Statistics show that among users who lost due to leveraged liquidation, 83% did not adhere to the 'trend supremacy' principle: blindly increasing leverage in volatile markets, ultimately being strangled by the market. I no longer use high leverage but focus on stable position size control.
Position management is the 'safety valve' that determines life and death. I always adhere to half-position operations, whether using 20x leverage or 10x leverage, it remains unchanged. This not only enhances psychological resilience but also amplifies profit potential when the market reverses.
Conclusion: Simple methods triumph over clever tricks
Three months later, when I saw my account exceed 200,000 USDT, I understood a principle: What 'magic operations' does the crypto world really need? Most people lose not to the market, but to their own greed and luck.
True turnarounds never rely on the courage of gambling but on the patience to control the rhythm. If you can restrain yourself and execute a simple set of rules to the extreme, time will naturally reward you.
Investing is not a sprint, but a marathon—running longer is more important than running faster. In this highly volatile market, surviving longer is the true victory.
Today, I still adhere to that seemingly 'clumsy' principle because it has taught me not only about trading but also a way of life: in a restless world, maintaining patience and discipline is the most powerful competitiveness.
I hope my experiences can provide some inspiration. Remember, the market is always there, but your principal is not guaranteed. Protect it well, and you will be able to wait for the opportunity that truly belongs to you.
In this zero-sum game, discipline is the only free lunch. Follow Ake for more firsthand information and precise points on crypto knowledge, becoming your guide in the crypto world; learning is your greatest wealth!#巨鲸动向 #加密市场观察 $ETH
