In the face of discipline, market trends are insignificant.
At the beginning of last year, my cousin, who had just graduated, came to me with the 12,000 yuan he saved from his internship, saying he didn’t want to squeeze into the crowded morning subway anymore and wanted to see if there were opportunities in the crypto world. At that time, I just casually gave him a few suggestions, but unexpectedly, three months later, the numbers in his account stunned me—12,000 had turned into 5,200,000.
There are no insider tips, no hundredfold leverage bets, and certainly no luck for overnight wealth. This result relies entirely on him adhering to three simple iron rules as if executing military orders.
01 The temptation of leverage, 2 times is the ceiling
I have seen too many people fall before high leverage. In my early years, I was one of them. At that time, I tried 15 times leverage and made 400,000 in a single day, my confidence soared, thinking that 'making money while lying down is not difficult.' As a result, when the regulatory policies came, I lost 800,000 in half a day; the feeling of falling from the clouds is still unforgettable to this day.
So the first hard rule I set for my cousin is: leverage can be used at most 2 times.
This is not a random number I casually mentioned. The inherent volatility of the crypto market is already great; a 10% rise or fall in a day is common. Using high leverage is like dancing on the edge of a cliff; a small fluctuation is enough to push you out.
More importantly, I made him cap the position of a single coin at 4%. This means that even if he invests in multiple coins simultaneously, the risk of each coin is strictly limited. In his words: 'Even if BTC seems stable, I won't dare to exceed this red line.'
02 90% of the funds stick to mainstream coins, 10% for testing.
The second rule concerns asset selection: 90% of funds must be placed in mainstream coins like BTC, ETH, while the remaining 10% can be used as 'testing funds' for new projects.
I once carried 250,000 to chase a popular altcoin, thinking it could rise when I reached 1,200,000, not withdrawing in time. As a result, the project team ran away, and my account was left with only 30,000. That kind of regret is enough to keep one awake all night.
Now I understand that mainstream coins have a large market value and strong consensus. Even if they drop by 50%, there is still a chance to recover in the long run. However, 90% of altcoins are worthless tokens; they might rise by 50% today and go to zero tomorrow.
My cousin strictly followed this rule. In his words: 'I don't mind losing all my money in new coins, as long as the foundation of mainstream coins remains stable.'
03 7% hard stop-loss, giving myself no excuses.
The third rule may be the most counterintuitive: every trade must have a 7% stop-loss point, and exit automatically when the point is reached.
I once watched the coin price drop by 12%, always thinking 'I'll wait a little longer for a rebound.' As a result, the more I added, the more I lost, ultimately losing 600,000 that I had prepared to buy a house. That kind of heartache can only be understood by those who have experienced it.
So I told my cousin that stop-loss is not an option but a necessity. He checks the mainstream coins' 4-hour candlestick charts at 9 AM every day and only considers entering when the EMA20 is stable and the volume increases; at 8 PM, he confirms that the stop-loss order hasn't been triggered and then closes the software to engage in other activities.
He said: 'Mistakes can be corrected, but if the principal is gone, there really is no opportunity left.'
04 The value of discipline far exceeds any market analysis.
In the past three months, my cousin did not chase any hot trends or use leverage, relying solely on these three 'foolish methods' to accumulate slowly.
The most frightening thing in the crypto world is not the market volatility, but human weaknesses. The temptation of leverage, the traps of altcoins, and the pain during stop-loss—these are hurdles that are harder to overcome than market analysis.
I have seen retail investors still staring at the screen at three in the morning and witnessed the despair of overnight liquidations. The ones who can truly survive are not the smartest but the most disciplined.
My cousin's success is not because he predicted the market correctly, but because he managed himself well. In the crypto world, surviving longer is more important than making quick profits; preserving capital allows you to wait for real opportunities.
Now I am still deeply involved in the crypto world, but I no longer pursue overnight riches. I turned my cousin's three iron rules into cards, placed beside my trading desk to remind myself constantly: In front of discipline, market fluctuations are insignificant.
If you are also exploring the crypto world, you might as well start with these three simple rules. Taking it steady is more important than anything else; at least you won't lose to the point of no return.
In this market, living longer is the real victory. Follow Ake to learn more firsthand information and accurate points of cryptocurrency knowledge, becoming your navigation in the crypto world; learning is your greatest wealth!#加密市场反弹 #加密市场观察 $ETH
