This is my experience of turning the tide in life. Three years ago, one early morning, I was awakened by a red liquidation alert from a certain exchange. In just three hours, my account balance of over a million U was wiped out. I stared at the fluctuating negative numbers, feeling like I was nailed to the cross of reality.
Later, I started to constantly review, summarize, and ask relatives and friends, relying on borrowed 200,000 to get back on track. It took 90 days, using a method with a win rate of 78%, to increase the principal to 20 million. The process was extremely difficult, but it resulted in five 'iron rules' that I have continued to use to this day.
No matter if you are a newcomer to the circle or an experienced player, or if you are currently trapped, please make sure to engrave the experiences I share in your heart.
——Rule One: Trading cryptocurrencies is not gambling, but a battle that requires a 'risk control system'.
The cryptocurrency market is not a casino; it is a battlefield.
A true trader is a warrior; you need 'armor' and a 'retreat route'.
You need to learn risk control in building positions:
Perpetual contracts ≠ gambling tools.
No matter how high the leverage, as long as the position is light and stop loss is clear, the risk is still low.
Using 100x leverage with only 1% of your capital to open positions, and 99% for risk buffering, actually reduces risk.
For example, with my own capital of 5000U, I only open orders of up to 50 contracts, set a trailing stop loss for a 2% floating profit, and keep stop losses under 3%. I only trade for 2 hours a day; emotional stability beats everything.
What truly destroys people is not the market, but your lack of risk control and inability to admit mistakes.
——Rule Two: Emotions are not a strategy; discipline is the way out.
Retail investors lose money, 90% die chasing after rises and falls.
Seeing coins rise makes you fear missing out, and you go all in; seeing coins fall makes you fear losing everything, and you cut losses overnight.
Do not act on impulse at the last moment:
Before buying, write down 'what price to buy, where to stop loss, how much profit to take'.
Increase positions when profitable, decrease positions when losing, never average down.
Do not get emotional looking at candlestick charts, only look at 'trading volume' and 'structural changes'.
The truth of price fluctuations is written in trading volume. Only with volume is there price; without volume, it must decline.
——Rule Three: Only trade the logic you understand, do not chase hot trends, do not touch emotional coins.
Do not covet the 'myth of getting rich in the crypto world':
The projects that rise the most also fall the hardest.
Following trends is not as good as focusing on mainstream coins you are familiar with and strategies you understand.
Do not touch coins without independent logic.
If you don't understand sector structures, don't randomly buy altcoins to chase profits.
Bitcoin itself hasn't changed, but its price can rise from 15,000 to 70,000, and it can also drop back to 15,000. This is not 'value change', but a change in market sentiment.
What you really need to learn in trading cryptocurrencies is to 'understand emotions'.
——Rule Four: Do not average down, do not hold positions, do not cling to past prices.
The first step to losing money is averaging down.
Averaging down is an 'emotional desire to break even', not a strategy.
If the position is wrong, you should stop loss, not average down.
The mindset of wanting to break even will destroy your remaining capital.
Trading is always about 'process management', not 'result obsession'.
Being stuck is due to not stopping losses; being liquidated is due to holding on too long.
What you lose is not money, but reason.
——Rule Five: Master one pattern and expand only after stabilizing.
What beginners fear the most is not inability, but being greedy and messy, imitating everywhere.
A sense of the market, a technique, and a set of models, understand them thoroughly first.
Do not look at MACD today, study Elliott Wave tomorrow, and chase on-chain data the day after.
Mastering one strategy is far more efficient than blindly chasing after more.
Trading cryptocurrencies is not about doing research; you don't need all sorts of skills. You just need a working system and repeatedly use it to make money.
The market is unpredictable, but your strategy must be simple, repetitive, and executable.
Always remember, you do not get rich with one big hit, but survive based on discipline.
You can earn big money not because you caught a wave in the market, but because you withstood how many crashes, endured how many temptations, and avoided how many impulses.
When losing, hold back your emotions; when profitable, control greed.
The end of trading is always about 'managing human nature'.
The cryptocurrency market is full of uncertainty and challenges, but it also contains potential opportunities. Investors should fully understand the associated risks, remain calm and rational, and adopt a steady strategy to respond to market changes!
Follow Brother Li's operations. The current market is hard to navigate. But that doesn't mean there are no opportunities. Brother Li can't claim to be very capable, but he can still grasp some opportunities every day.
