Brothers, I received a screenshot of a fan's transfer last week, and I almost couldn't help but shout — this kid came to me with 4200 yuan, panicking so much that he couldn't even understand the K-line, and now his account has surprisingly rolled to 68,000! He messaged me: 'Teacher, your 3 iron rules are more useful than the indicators I learned in the past three years!'
To be honest, I've been in the crypto circle for 5 years and have seen too many people turn trading into a mystique: there's the MACD golden cross and dead cross, and Fibonacci retracement, as if not using a few professional terms makes one seem less competent. But the truth is, in this market, skills are just a stepping stone; what really determines success or failure is whether you can control your hands and heart. Today, I'm laying bare my 3 anti-humanity iron laws, and those who understand them will at least lose 50% less of their principal!
Rule one: First act as a 'scout', then as a 'regular army'.
The most unfortunate retail investor I’ve seen is the one who, just as he spots a market trend, rushes in with all his capital, only to find himself stuck halfway up the mountain when the trend pulls back. This fan also had this flaw at first, constantly mumbling, 'If I don’t enter now, I won't even get to drink the soup.'
My rule is simple: Until the market shows a clear attitude, never act like a 'gambler'. For example, if you are optimistic about a coin, don't rush in with an all-in; first take 10-20% of your capital as a 'scout' to test the market. If the price breaks through key positions with increased trading volume, then add in three batches, with each batch decreasing in amount (for example, the first batch 30%, the second batch 20%, the third batch 10%). The benefit of this approach is that even if the first judgment is wrong, the losses won't be catastrophic; once the direction is correct, the cost can be averaged down further.
Remember, the market is never short of opportunities; what it lacks are people who can endure. Those who get liquidated are 90% losing due to being 'impatient'.
Rule two: Don’t 'fall in love' with losing trades; be bold in adding to winning trades.
This is the most counterintuitive hurdle, and the one that fans resist the most. He wanted to add to his position after losses, calling it 'averaging down', but the hole just kept getting bigger. I told him directly: 'You are investing, not engaging in charity!'
The iron rule is simple: a losing trade indicates you made the wrong judgment, so cut your losses quickly; a winning trade shows the market is rewarding you, so dare to let profits run. I insisted that this fan strictly follow the 'principal protection principle'—the principal never moves, only use floating profits to add to positions. For example, if he makes a profit of 2000 yuan on a long position, he should only use that 2000 yuan for the next add-on, even if the market reverses later, the principal remains untouched.
Adding to a position is like saving a drowning person; if you can't swim well yourself and you keep diving into deeper waters, you might end up sinking together. Those who can roll up a snowball are the ones who first protect their principal and then let compound interest work its magic.
Rule three: The trend is your 'boss', not your 'leverage expert'.
Every time the market fluctuates, there are always people shouting 'buy the dip, sell the peak', as if operating against the trend makes one a hero. This fan once lost so much that he doubted life itself: he repeatedly tried to time the top of SOL, but the coin price kept climbing while his account kept shrinking.
My advice is straightforward: Don’t go against the trend; you’re not here to be a 'reverse indicator master'. If the price is above the moving average and the highs and lows are gradually rising, go with the trend; if it breaks key support and the highs and lows are descending, cut your losses promptly. Those who always want to accurately predict reversal points are essentially driven by greed, thinking they can buy at the lowest and sell at the highest.
I have never dared to say '100% accurately hitting the top and bottom' in the past five years, but why have I managed to survive until now? Because I know: the market is always smarter than people; the grass on the grave of those who operate against the trend is already three meters high.
To put it plainly,
In the end, what matters in trading is not how flashy the skills are, but how stable the mindset is. If you can hold back when others are chasing prices, and dare to pick up chips when others are panic selling, you've already won 80% of the battle.
These three iron rules, to put it simply, are meant to help you keep 'impulsiveness' caged. If you can't control your hands, it might be a good idea to save this article and read it before placing an order. After all, in a market that treats various forms of defiance, living long is more important than making quick profits. Follow Bin Ge to learn more firsthand information and precise points in the crypto world; education is your greatest wealth!#巨鲸动向 #隐私叙事回归 $ETH
