I have seen someone roll 5,000 principal into 100,000 in half a month, and also witnessed him lose leverage and only have a few hundred left after three days; I experienced the ecstasy when the account surged to 600,000, and also tasted the despair of returning to 200,000 after a sudden drop in the middle of the night. After eight years of struggling in the crypto market, I finally realized: what is more important than 'earning more' is 'holding on to' profits.
In that wave of market in 2020, a friend's experience in the circle still impresses me to this day. He entered the market with a small amount of principal and happened to catch the explosion of a certain public chain ecosystem. In just a few weeks, his account skyrocketed to six figures. At that time, I specifically reminded him: 'Take out the cost first, and you can play with the remaining profits.' But he patted his chest and said, 'This is just the beginning, I will resign when it multiplies five times.'
The subsequent story is something everyone can guess. Not only did he not take profits, but he also leveraged to the highest degree to chase the highs. The bear market came unexpectedly; when it fell from 100,000 to 30,000, he said, 'I'll sell on the rebound'; when it dropped to 10,000, he said, 'I'll hold on to the end'; finally, when the account balance was down to a few cents, he deleted all trading software and never showed up in the circle again.
Don't think he's foolish; I once stumbled in exactly the same way. That year, the mainstream cryptocurrencies I heavily invested in experienced a surge, and my account soared to 600,000, just one step away from my set goal of 'one million'. Clearly, there were significant signs of a bearish divergence on the technical side, but greed completely overshadowed rationality—I always felt 'I could take the last bite of the meat.' Not only did I not reduce my position, but I also leveraged to add to my holdings.
As a result, a sudden drop late at night led to the forced liquidation of my leveraged position, and my account instantly returned to 200,000. That day, I sat in front of the computer, smoked pack after pack, and all I could think was, 'If only I had stopped in time.' It was from that day on that I truly understood: the crypto market is never about who makes the most money but about who can turn the numbers on the screen into real money in their bank account.
In these three years, I have preserved my profits by adhering to three 'iron rules.'
After experiencing that 'roller coaster,' I set three strict rules for myself, which I have never broken, and I have relied on these three rules to secure multiple profits steadily:
Doubling requires a withdrawal of principal: As long as the account's principal doubles, immediately withdraw all the initial investment to the bank card, and continue to operate with the remaining profit as 'risk capital.' This way, regardless of how the subsequent market fluctuates, at least the principal won't be lost, which is equivalent to 'free stock trading.'
Withdraw half of the position at three times: When the total assets of the account reach three times the initial principal, decisively withdraw 50% of the profit as a 'safety cushion.' This money should either be deposited in a fixed term or used to improve life, absolutely not reinvested in the market. This step ensures that even when encountering extreme market conditions, most of the profits can be preserved.
Monthly withdrawal system: Even if it’s just a small profit, every month, a fixed amount must be transferred out (I usually take 20% of the profit) for buying things, traveling, or giving red envelopes to family. Doing this not only allows you to intuitively feel the meaning of making money, but also avoids the illusion of being a 'paper millionaire.'
Many people think this approach is 'too timid,' but I have seen too many cases of falling back to zero after making a million in profits. The essence of the crypto market is high volatility; no one can always hit the rhythm perfectly. No matter how bullish the market is, it has an endpoint, and even the strongest assets will undergo corrections. Learning to hit the brakes when greed rises is the key to long-term survival.
There are always people in the circle pursuing 'precise top-ticking and bottom-fishing,' believing they are the chosen ones who can catch every wave of the market. But the reality is that even the top institutions can't achieve this. What we ordinary people need to do is not to pursue 'the most profits' but to pursue 'steady profits.'
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