On the path of trading cryptocurrencies, I went from sleepless nights staring at liquidation red numbers to now earning a stable monthly income of a million. It's not due to talent or luck, but rather a set of 'foolishly simple' methods—no complex indicators, no insider information, just relying on 'survival + making the right moves', simple, executable, and effective. $RDNT
## 1. Ironclad Financial Rule: If you want to make money, first protect your principal $ZEC
No matter how good the strategy is, if you can't withstand a liquidation, it all goes to zero. $LUNC The first principle of survival in the crypto world is to stay alive.
• Position Sizing: With a principal of 100,000, only use 10,000 for each trial trade, and the total position should never exceed 20%. Even if you predict the market correctly, don't give it a chance to harvest all at once.
• Fixed Stop Loss: If a single trade loses 2%, exit immediately, without hesitation, without holding on, without taking chances. This rule has helped me avoid 90% of liquidation risks.
• Reject High Leverage: New traders should avoid leverage altogether, and even experienced traders should never exceed 10% of their position with leverage. Leverage is a tool, not a gambling device; don’t let it become your death sentence.
## 2. Core Strategy: Less is More, Make the Right Moves to Profit
The market doesn't make money through 'more trades,' but through 'making the right trades.'
• Unidirectional Trading: Only go long or only go short, choose one direction to focus on deeply, avoid back-and-forth trading, and the success rate will significantly increase—focus leads to expertise.
• Mechanical Discipline: Set strict rules in advance: 3% stop loss, 5% take profit, automatically execute at the set points, which is 10 times more reliable than emotional judgment in the moment.
• Control Trading Frequency: The quality of the first 1-2 trades each day is the highest, trading more than 3 times is basically just giving the market transaction fees, pure wasted effort.
## 3. Warning Zones: 90% of New Traders Die in These 3 Pits
• Never add to a losing position against the trend: The more you average down, the deeper you sink; each time you add to a losing position, you are one step closer to liquidation.
• Reduce Meaningless Trades: The transaction fees from frequent buying and selling can easily eat up most of your profits, leaving you with nothing in the end.
## Case Comparison: Same 100,000, but the outcomes are vastly different
### Wrong Approach:
Fully invested + High leverage → Panic adds to losing position → Hold to liquidation, 100,000 goes to zero.
### Correct Approach:
20,000 for the base position (total position 20%) → 3% stop loss/5% take profit → Only 2 high-quality trades per week.
Result: Stable monthly returns of 8%, compounding annualized directly to over 150%, getting more stable as it grows.
