Last week someone said: "Teacher, I just entered the circle and caught a 20% increase, am I naturally suited for this job?" I sighed at the screen—this kind of talk was something eight people from last year's liquidation said exactly the same.
The most magical aspect of the cryptocurrency market is: it can let you experience a "preview of financial freedom" in one day, but it can also leave you staring blankly at the K-line chart at three in the morning, even your hand shaking while trying to delete the software. I have been in derivatives trading for seven years, seen someone turn $5000 into a million, and also seen someone lose their demolition compensation to the point of only having their underwear left. In the end, I summed it up in one sentence: the sudden gains are all high-interest loans offered by the market, and when it's time to pay back, they never give you a heads-up.
Last winter, a fan reached out to me, sounding as if he had just been buried in snow: 'Bro, I listened to the 'big shot' in the group and opened leverage recklessly, losing from $100,000 to just $3,500, and my wife doesn’t know. I can hardly hold on.' I could feel his despair through the screen, but I only replied: 'As long as your principal isn’t wiped out, you haven’t lost—what the market kills are not 'poor people,' but 'those eager to win.'
Half a year later, he sent me a screenshot, and the account steadily climbed to six figures. This is not a miracle; it was achieved by relying on three 'life-saving iron rules.' Today, I'm sharing the essence with you, and those who understand can avoid three years of detours:
First tip: Principal splitting method—putting eggs into different 'bulletproof vests.'
He divided the $3,500 into 10 parts, using only $300-$400 to enter each time. Don’t underestimate it; the core of this strategy is 'leaving the green mountains.' Many people start by going all in, make a profit once, feel elated, then lose once and collapse, their emotions are more volatile than the K-line. Think about it; even if one trade loses, the remaining 9 parts of the principal are still there, and you still have a chance to wait for the next market; but if you go all in and get liquidated once, you can only pack up and leave. Remember: in the crypto market, those who can stabilize their emotions have already won half.
Second tip: Ladder profit-taking technique—taking profit when it's good is better than 'biting off more than you can chew.'
He set strict rules for himself: as soon as each trade profits by 20%-30%, he exits immediately, never getting emotionally attached. I've seen too many people who originally made a good profit but insisted on waiting for 'a bit more,' only to have the market turn sharply and their profit become a loss—it's useless to regret then. His method is: let the profit part gradually snowball, and the principal never moves, like putting a 'safety airbag' in the account. You have to understand, there are no 'gods' who sell at the highest point in the market; only 'smart people' who take profits.
Third tip: Market filtering criteria—learning to stay in cash is better than trading every day.
This is the biggest change in him. Previously, he couldn't help but stare at the screen 24 hours a day; even the slightest market movement would make him want to enter. Now? As long as the K-line moves 'ambiguously,' and the direction is uncertain, he decisively stays in cash, watching shows or having meals. Later he told me: 'It turns out that experts are not 'trading gods,' but 'waiting gods'—opportunities are like buses; if you miss this one, there’s another next one. But if you get on the wrong bus, you might go in the opposite direction.'
This guy is still steadily making his way in the market; while others are getting liquidated, he is drinking tea, and while others are chasing highs, he is watching the show. In fact, there has never been 'eternal profit' in the crypto market. Those who can survive for more than five years have made 'not getting harvested' their primary goal.
Finally, let me say something heartfelt: don’t always think about 'getting rich overnight'; first, learn to 'live slowly.' Once you engrave these three iron rules into your bones, you will realize—actually not getting liquidated is much more satisfying than making quick money.
By the way, next week I plan to break down 'how to catch small waves in a volatile market,' which are techniques learned from real combat. Follow me, and together we will 'survive and develop' in the market. When those eager to get rich get liquidated ten times, we will have won ten times—after all, the one who laughs last is the real winner, right?
