In the world of investment, speed and passion may bring short-term profits, but what allows you to navigate bull and bear markets and stand firm is always stability, rhythm, and risk control.
Many people chase high profits, but overlook that 'stability' is the key to long-term gains. Those who can survive in the market for three, five, or even ten years are often the investors who understand risk control and remain calm.
These 8 principles are the culmination of my years of experience, the 'rules of life' earned with real money. Remember these, and you can avoid many detours and pitfalls.
① Making money is not a skill; keeping it is the way to go.
To go from 1 million to 2 million requires a doubling, but to drop from 2 million back to 1 million only needs a 50% loss. The market is not short of people who can make money; what is scarce are investors who can withstand major drawdowns.
② Real stimulation comes from steady account growth.
You may think high-frequency trading is profitable, but a single drawdown can destroy six months of effort. A stable account curve is the most valuable wealth in the cryptocurrency world.
③ Greed, the most fatal 'guillotine'.
Earning 1% daily results in a twelve-fold increase in a year. Those who dream of getting rich overnight will eventually face ruin overnight. Sustained profitability is more important than short-term windfalls.
④ Math is more real than passion.
To grow from 1 million to 10 million, you need an annualized return of 26%. If you don’t understand calculations, you can only get lost in chasing highs and selling lows.
⑤ Adding positions is not courage, it’s calculation.
Buying 10,000 at 10U, then buying another 10,000 at 5U results in an average cost of 6.67U, not 7.5U. Adding positions requires calculation; getting it wrong is more fatal than not adding at all.
⑥ Unrealized gains are not money; cashing out is.
When the account rises to 1.1 million, the actual bottom line remains 1 million. Unrealized gains are not actual profit; treating unrealized gains as real money will eventually lead to a harsh lesson from the market.
⑦ In a bull market, everyone dares to charge; in a bear market, it’s about who can survive.
In a bull market, everyone is a genius; the bear market is the true test. Those who can survive the bear market will make big profits in the bull market.
⑧ One word: stability.
Opportunities in the cryptocurrency world are always there, but only those who survive to the next wave of opportunities are the winners. Controlling positions, adhering to discipline, and avoiding impulsiveness are the only rules for long-term survival.
Investing is a marathon, not a sprint.
Quick gains bring temporary pleasure, but a stable strategy and a mature mindset are the foundation for going further. Remember these rules, stay steady, and you will have a future.
