Last year, when I pried open my sister's study door, she was crying while holding her laptop - the trading account on the screen had only 3,600 U left, while three months ago, that number was 360,000. On the sofa, her cracked phone had the uninstallation screen stuck on the cryptocurrency trading app, and with red eyes, she told me, 'I will never touch this broken thing again in my life.'
Result in spring, she suddenly invited me for tea, her eyes shining as she took out her phone: 'Look, over 100,000 U.' I almost spit out the freshly brewed Longjing tea - turns out, she wasn't emo these past three months, but rather holding back the 'rules of loss.' As a cryptocurrency analyst with 5 years of experience, I must say, her move of 'climbing back from hell' is 10 times more reliable than many so-called 'masters' theories.
First rule: position is life; don’t put all your eggs in a broken basket.
In the past, my sister was a typical 'full position warrior', going all-in when the market was rising and adding to her position when it fell, euphemistically called 'averaging down.' Until that time when mainstream coins plummeted by 20%, her fully leveraged contracts blew up, and she finally understood that 'position is more important than entry point.' Now she has set strict rules for herself: never risk more than 25% of her position on a single trade, and even for the most promising coins, she only uses pocket money to experiment.
I often tell my fans that 'position management is the safety belt of the crypto market.' If you don't even buckle your safety belt, even if you temporarily speed up, you'll eventually crash. My sister's 3600U can turn around, but the first step is to change the 'gambling mentality' to a 'working mentality'—only if the principal is there can you wait for opportunities.
Second rule: be ruthless with stop-loss; don’t fall in love with losses.
"Cut losses immediately with a 10% floating loss," this is a note she pasted next to her computer. She used to think, 'Wait a bit longer; it might go back up,' but ended up watching a floating loss grow from 5% to 50%, ultimately having to cut her losses. Now she uses the simplest method: set an automatic stop-loss line, and sell when it hits, without hesitation.
Here's a reminder for beginners: stop-loss is not admitting defeat; it's preserving strength. The crypto market is highly volatile; it may drop 10% today and 20% tomorrow. Don't think about 'sticking it out'; you can't outlast the market. As long as the green mountains remain, you don't have to worry about not having firewood to burn. This saying works better in the crypto world than anywhere else.
Third rule: be steady with profit-taking; don’t let greed eat back your profits.
What impresses me the most is her 'withdrawal obsession'—after every profit, she only leaves 15% to reinvest, and immediately transfers the rest to a stable account. One time she made over 6000U in a swing trade and withdrew over 5000U that same day to buy me a new jacket. She said, 'Slow is better than losing everything; taking a little profit is safer, and accumulating small amounts is better than a roller coaster ride.'
I have seen too many people 'earn 100,000 and want 200,000, only to lose 50,000' in the crypto market, where 'greed' is the biggest player. You think you're making money from the market, but you're actually gambling against your own desires. If you conquer your desires, you've already won most of the market.
My sister is still trading crypto now, but she is no longer the one crying on the balcony. Recently, she helped a friend grow from 2000U to nearly 10,000U, not relying on any insider information, but by adhering to these three rules. In fact, there has never been a real dead end in the crypto market; dead ends are given by greed and luck.
Finally, let me say something straightforward: don't envy those overnight wealth stories; they are all survivor bias. Ordinary people in crypto don't want to 'gamble for a turnaround', but 'slowly become rich.' The next time someone tells you that 'full position can lead to wealth', just show them my sister's story—losing 360,000 to 3,600U and climbing back is not about luck, but about rules.
Follow me, and next time I'll teach you how to use the 'small principal trial and error method' to find potential coins. We don’t do empty talk; we only discuss practical techniques that can be implemented. After all, in the crypto market, surviving and doing so with a smile is the best strategy~
