Surviving in the crypto world relies not on intelligence, but on ingraining discipline into your bones.
Last winter, one deep night, a WeChat message popped up. It was from an old comrade of mine, and there lay a screenshot in the chat box: account balance 8000U. He told me that in six months, nearly 60,000 USD of principal was almost swallowed by the market.
High leverage, chasing hot spots, all-in on altcoins—he fell into all these typical traps for beginners.
I didn't analyze the market with him, nor did I recommend any cryptocurrencies. I only gave him four 'iron rules' that I summarized myself. For a full three months, he executed these rules like a monk, and in the end, his account surged from 9000U to 140000U.
Four iron rules, seemingly simple yet cutting to the chase.
1. Limit single position to 30%, always leave room.
He initially liked to trade with his entire capital, thinking it was 'thrilling'. I told him this is like going into battle without a backup team; one mistake can lead to total loss.
I required him: a single position should not exceed 30% of total capital, and hold no more than three cryptocurrencies at the same time. The remaining 70% must patiently wait for real good opportunities.
2. Take partial profits at 10%, stop losses immediately at 3%.
This is the most counterintuitive part. People always want to earn more and are unwilling to cut losses. I set strict rules for him: when profits reach 10%, consider reducing positions; losses touching 3% must exit immediately.
This is not a technical issue; it is a mindset issue. You need to remove the word 'fantasy' from your dictionary.
3. Don't guess tops and bottoms, just follow the trend.
He initially always wanted to 'catch bottoms' and 'touch tops', but he was constantly slapped by the market. I told him: Don't predict the market, just respond to the market. Wait for the K-line to clearly indicate the direction before entering; it's better to miss the fish head than to only eat the fish body.
4. Daily 50-word review beats any technical indicator.
I required him to write a review every day after trading: why he won, why he lost, what went wrong, and how to improve. 50 words is the minimum; if he doesn't finish, he cannot sleep.
This is not formalism; it is about cultivating 'muscle memory' for trading.
From resistance to acceptance, how discipline changed his trading curve.
In the first two weeks, he was itching to trade heavily, wanting to chase the rise, but I held him back. In the first month, he only made 1,200 U, but his review notes filled 11 pages.
In the second month, the market warmed up. He used 30% of his capital to roll over trades and surprisingly made a 40% profit, with his account exceeding 30,000 U.
In the third month, the market surged violently. He still insisted on using 20% of his capital for short-term trades, strictly controlling the drawdown within 3%, and his account soared to 140,000 U.
Last night, he bought me a drink and said something that impressed me: 'Brother, I now understand that the sharpest weapon in the crypto space is not technical indicators, but the discipline ingrained in one's bones.'
Why can't most people do it? Because it goes against human nature.
In the highly volatile cryptocurrency market, 90% of losses come from betting against the trend and emotional trading. We always overestimate our predictive ability and underestimate the randomness of the market.
Seeing others become rich overnight, he couldn't help but chase high; seeing his coins drop, he was reluctant to cut losses. These are all human instincts, but the market specializes in rectifying various disobediences.
My personal opinion: Surviving is more important than anything.
After years of observation, I found that those who can continuously profit in the crypto space are not the 'stars' who get rich quickly, but those who can control risk and adhere to discipline.
The crypto space is not short of opportunities; what is lacking are those who can survive until opportunities arise. Every day there are new cryptocurrencies, new concepts, and new hotspots, but if you run out of capital, no opportunity will matter to you.
My advice is simple: If you are also at a low point, don't rush to recover losses. First, learn the 'rolling position' mindset—using small capital, small positions, and small goals to gradually grow the curve day by day. Slow is fast, little is much; this is not just a trading strategy, but a survival wisdom.
The market changes every day, but human nature never changes. To survive in this market, you must learn to cage 'impulsiveness' and cultivate 'execution' as muscle memory. The market can wait, but discipline cannot stop.
Only in this way, when the next opportunity arises, can you not only seize it but also leave the table with profits. Follow Xiang Ge to learn more first-hand information and knowledge about the crypto space, becoming your guide in the crypto world; learning is your greatest wealth!#加密市场反弹 #加密市场观察 $ETH
