Discipline is the only dividing line between the rich and the poor.
Late last month, I received a distress message from Xiao Yang: 'Teacher, there are only 3500U left in the account, I can't hold on much longer.' The sense of despair in his words almost overflowed from the screen.
I replied to him: 'Stop trading, first establish three dead rules.'
Seven days later, he sent a screenshot—account balance 50000U. It's not based on some mysterious code, nor on insider information, but on three extremely simple rules.
01 Rule One: Divide your bullets into ten parts, and only fire 5% for the first shot.
Xiao Yang, like most retail investors at first, jumped in headfirst at any opportunity, resulting in either buying at the peak or selling at the bottom. My first rule completely changed this pattern.
"If the market doesn't nod, just consider yourself as air."
The first position only invests 5% of the total capital, equivalent to 0.5% of the total funds. This may sound conservative and make people anxious, but this restraint allows him to retain strength when the market suddenly turns.
During that ETH rebound, he first tested with 5%, and after confirming the direction, he increased his position in increments of 1-2-3-5. With thirty percent of the position, he made an 18% profit, and his account directly surpassed ten thousand.
And what about those guys in the group shouting 'one shot'? Most are still struggling to break even. The crypto world never lacks opportunities; what's lacking is the principal left in the market.
02 Rule Two: Only add to positions when in profit, cut losses immediately.
Xiao Yang's biggest problem before was trying to average down after losing money, resulting in a bigger and bigger hole.
The second rule completely reverses this: "Cut losses immediately on losing trades, not even giving a glance."
On the contrary, when your position starts to profit, increase your position every 4% rise, while moving your stop loss to the breakeven point. This way, profits grow like a snowball, while your principal remains safe.
During that crazy week for BTC, his base position of 3200U was lifted to 28,000U by unrealized gains, with a drawdown of less than 3%. Why? Because all positions were increased under profit protection.
The underlying truth is actually simple arithmetic: Losing 50% requires earning 100% to break even. Losing money is like a mountain collapsing, while making money is like pulling threads.
03 Rule Three: Follow the direction of the candlestick.
Xiao Yang used to like guessing tops and bottoms, only to be slapped in the face by the market. I told him to delete all indicators and leave just a 60-day moving average on the daily chart.
"When prices are rising, only go long; when prices are falling, only go short; if the closing price breaks down, everyone retreats."
So simple that it feels like foolproof operation, yet it helped him avoid two midnight crashes. Meanwhile, those big influencers shouting 'buy the dip' faced liquidation and deleted their tweets.
This is not some advanced technical analysis; it is simply about respecting market trends. Just as surfers do not go against the waves, why should traders operate against the trend?
04 My trading philosophy: The market is a realization of cognition.
I entered the industry in 2015 and went through a stage similar to Xiao Yang. I once lost over a million in a night and also made ten times my investment during a bull market. Ultimately, I understood one principle: you will never earn money beyond your understanding.
The biggest illusion in the crypto world is thinking that you can rely on luck to keep making profits. Perhaps you can in the short term, but in the long run, the market will always find your cognitive limits and take away the money you've made by chance.
Truly stable traders have turned trading into a boring routine. Just like an assembly line in a factory, every action has standards, and each operation has discipline. Excitement does not come from gambling-style trades, but from the satisfaction of strictly executing a system.
05 For those still struggling: The cage is ready; do you dare to step in?
Xiao Yang asked me why I was able to successfully reverse. I said, "You didn't conquer the market; you conquered the beast called 'greed' within yourself."
Before every trade, ask yourself three questions:
Did you shoot all your bullets at once?
Have you added to your losing position?
Did you go against the trend?
As long as the answers are all 'no', your account has already begun to self-repair.
The crypto world is not short of smart people, but there is a shortage of disciplined 'fools'. Those who execute simple rules to the extreme often become the final winners.
True trading freedom does not come from how accurately you predict, but from whether you have the ability to get back up after a drop. Xiao Yang's 50,000U is not the endpoint; it is the starting point of his true trading journey.
The cage is ready; whether you dare to step in is up to you. Follow Xiang Ge, who will help you understand more firsthand information and precise points in the crypto world, becoming your guide in the crypto space. Learning is your greatest wealth!#ETH走势分析 #加密市场观察 $ETH
