Many people often ask me a question:

Why do so many people who trade contracts end up losing everything?

I usually just respond with one sentence:

It's not that they can't understand the market, but that they don't know how to cut losses.

Really, I've seen too many people blow their accounts over the years.

Just yesterday, a fan sent me a message, opening a position with 10x leverage, but didn't set a stop-loss.

He said that at that moment, he only had one thought in his mind:

Just wait a bit longer, it should come back.

As a result, the market accelerated, and the account went straight to zero.

In fact, this kind of thing is not surprising at all, because I myself have also died this way before.

In 2023, there was one trade I remember very clearly.

At that time, BTC surged from 28000 all the way up, and I opened a short position with 5x leverage.

I was quite calm inside, constantly telling myself:

It will pull back after a rise, and I'll close the position then.

Instead, it rose all the way to 35000.

And then—my account was gone.

There was another time with SOL.

At that time, I chased after the breakout at 120 and opened a long position with 10x leverage, thinking I would exit after it broke the previous high.

As a result, it directly dropped to 98.

The account was instantly cleared.

Later, I gradually understood one thing:

The market rarely kills decisively; most people are killed by "just wait a bit longer."

You might survive once by holding a position,

but if you hold it ten times, there will always be one time that ends completely.

Since then, I have stubbornly made cutting losses a habit.

Now I have a few very simple trading principles:

First, set a stop-loss when opening a position.

As soon as I place the trade, I calculate the worst-case scenario—

how much loss I can accept.

Second, move the stop-loss up when in profit.

If the market moves in my favor, I slowly raise the stop-loss.

Even if it suddenly reverses, I won't lose all the profits.

Third, stop trading after consecutive losses.

If I lose two or three trades in a row, I will directly close the software.

I go running, go to the gym, in short, I don't look at the market.

Because once emotions get high,

the next trade is basically not far from blowing the account.

Many beginners feel that setting a stop-loss is admitting defeat.

But if you stay in the market long enough, you will find that:

Cutting losses is not admitting defeat; it's saving your life.

Sometimes, the difference between a master and a beginner is just one action:

When the market is not right, can you press the stop-loss button?

There are always many opportunities in the crypto world,

but the premise is—

your account is still alive.