To be honest, those who can survive in the cryptocurrency world have never relied on luck or the recklessness of betting.

I've seen people crying at 3 AM after being liquidated, and I've seen others steadily turning their fortunes around with small amounts of money, like my fan Xiao Yang who came to me last year.

He arrived with 2400U, having just lost everything in his futures account, wanting to recover his previously trapped capital.

Last week, LUNC's daily chart bounced off the support level of 0.00012USDT three times; discussing moving averages and MACD in such a market is just misleading for beginners.

I shared the three rules I developed after being liquidated twice with him, and three months later he sent me a screenshot —

68,000U, and even when LUNC spiked down to 0.00009, he wasn't liquidated.

Splitting the principal into three parts is the safest: 2400U divided into three amounts of 800U, absolutely not to be mixed.

The first part is for short-term trades, like the recent large fluctuations of LUNC, opening at most two contracts a day and closing the software directly at the end of the day;

The second part waits for a trend; if the weekly chart hasn't crossed above the moving average and volume hasn't broken above the 5-day average line, stay in cash;

The third part is emergency funds; in case of extreme spikes triggering the liquidation line, replenish before it hits to protect the principal.

Only take a small bite of the trend and then run: only enter when the daily MA5 crosses above MA10, like when LUNC broke 0.00015USDT last Friday with substantial volume and closed steadily, this is when trying small positions is safe.

Once profits reach 30%, withdraw half of the profits, and set a 10% trailing stop for the rest; don’t be greedy for that last point.

I lost 50,000U overnight because I fell victim to my emotions back then.

So I repeatedly told him to write a plan before opening a position, set a stop-loss at 3%, and have it automatically close at that point;

Once profits reach 10%, adjust the stop-loss to the break-even price.

Every night at 12 AM, the computer must be turned off, even if LUNC has movements at that time.

There are daily market opportunities, but once the principal is gone, it’s truly gone.

These three rules are not techniques, but the baseline; first protect the principal, then it’s not too late to talk about wave theory.

Follow me for practical trading techniques that can be applied, see you in the Binance chat room.