Rules are more important than luck, discipline conquers the market.
When I first stepped into the cryptocurrency market, there was less than 1500U in the account. Every time I placed an order, my hands would shake, but I clearly realized: the less capital I have, the more I need to engrave the word 'stability' in my heart. Four months later, the account exceeded 80,000U, and in half a year reached 200,000U, with zero liquidation throughout.
Some say this is purely luck, but I know that what truly got me through was not luck, but three iron rules that helped me 'stay alive and make money'. Today, I will share these experiences with you, hoping to help you navigate the unpredictable cryptocurrency market steadily and far.
01 Capital Segmentation: Surviving is the hard truth
I split my 1200U capital into three equal parts of 400U, each with a clear mission:
The first 400U is for day trading, only operating in mainstream coins like BTC and ETH, decisively exiting when volatility reaches 2%-4%, never being greedy.
The second 400U is for swing trading, waiting for clear signals before taking action, holding positions for a few days to seek stability.
The third 400U is your reserve capital, which should not be used lightly no matter what; this is your confidence to turn things around in the future.
Those who go all in become euphoric when prices rise and anxious when they fall; such a mindset cannot go far. Scientific capital management is the cornerstone of long-term survival. According to BitMEX's 2022 study, those who operate with full positions have an 11 times greater risk of liquidation than those who diversify their holdings.
02 Trend Following: Avoid fluctuations, seize the moment
The cryptocurrency market spends 80% of the time in sideways trading, with only 20% of the time exhibiting clear trends. During sideways conditions, I choose to patiently observe and only act decisively when the trend is clear.
My profit strategy is: When profits reach 12%, withdraw half the profit first and let the remaining profit continue to run. Money feels real only when it is in your pocket. Doubling your account relies on steadily earning money, not chasing highs or being anxious.
Only invest in mainstream coins, avoiding those altcoins that experience short-term surges and drops. Markets like 'Dragon Silver Coin' that have short-term volatility are often manipulated by speculators, making it difficult for ordinary investors to exit unscathed. Focus on mainstream coins like BTC and ETH, which have strong liquidity, high market recognition, and more stable long-term performance.
03 Rules above all: Lock emotions, strictly execute
Establishing clear trading rules is key to avoiding emotional decision-making.
My rule is: Single trade loss should not exceed 1.2% of total capital, exit immediately when the stop-loss line is hit, and harbor no illusions. If profits exceed 2.5%, reduce the position by half to lock in some profits. Never average down when losing; acknowledge mistakes and don’t let emotions mislead you.
You don’t need to judge the market accurately every time, but you must strictly adhere to the rules each time. In the contract market, surviving longer is more important than making quick profits. Control greed and execute strictly, and you can surpass 90% of contract players.
Survival wisdom in the crypto market: From novice to steady investor mindset
As a senior crypto analyst, I believe that survival in the cryptocurrency market is victory. Cambridge data shows that the survival rate of beginners who strictly follow risk management rules increases from 19% to 68% over three years.
Avoiding leverage traps is the first lesson for beginners. Data shows that users with 10x leverage have an average survival period of only 17 days, and 83% of liquidation orders occur when leverage is ≥5 times. I have always adhered to one principle: invest with spare money, never borrow to trade.
There are always opportunities in the market, but losing all your principal for the first time means you are out. Start small, learn while doing, and refuse to let greed drive your decisions. The goal of crypto investment is not to get rich overnight, but to strive for long-term steady returns while controlling risks.
Conclusion: Rules forge the path to long-term profitability
The journey from 1200U to 200,000U relies not on luck, but on rules, patience, and discipline. The crypto market is not short of stars, but it lacks longevity. Establish a rule system that suits you and execute it strictly; you can stand undefeated in the volatile market.
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