In the winter of 2019, I turned off my phone.
It's not that the phone is out of battery; it's that the mindset has collapsed.
At that time, there were only airdrop candies left in the account, a six-figure debt on the balance sheet, and unread messages from the debt collection group flooding like a waterfall.
Those two years, I called it the 'crypto winter'—leverage liquidation, chain-stop losses, sleepless nights staring at the K-line until four in the morning.
Later, I reviewed all on-chain records and trading logs, finding that all losses cannot escape two phrases:
1. Losing money that shouldn't be lost.
2. The money that should have been earned was not earned.
Today, I broke these two sentences into seven military rules to give to you who are still staring at the screen late at night.
First, the three major mountains of losing money: over-leveraging, holding positions, and trading against the trend.
1. Over-leveraging is gambling; 30% is the red line.
I have seen too many people (including myself) go all in, calling it 'big picture', but in reality, it's a gambler's mindset.
My standard: a single position should never exceed 20% of total funds, no matter how clear the signal.
For example, if you have 100,000 in your account, use a maximum of 20,000 for each position; even if the direction is wrong, the account won't suffer severely.
The truth: Opportunities in the crypto world are always there, but if your capital is gone, you no longer have the qualification to sit at the table.
2. Holding onto losing positions is slow suicide; a floating loss of 5% must be cut.
Many people are reluctant to cut losses and always fantasize about a recovery, but they end up falling deeper.
My iron rule: set a stop-loss immediately after opening a position; if floating losses exceed 5%, automatically close the position, no manual intervention.
For instance, if you're going long and the price falls below a key support level by 1%, don't hesitate; just walk away.
Remember: Stop-loss is the "insurance premium" paid to the market; small losses prevent big losses.
3. Trading against the trend is like rowing upstream.
The trend is your only friend. Trying to catch rebounds in a downtrend is like trying to catch a flying knife—if you can't catch it, you'll get hurt.
Determine whether it's against the trend:
Breakout order: stop-loss if the price falls back below 1% of the breakout price;
Pullback order: if it falls below the previous low or shows reverse volume, stop-loss.
Core: Focus on momentum, not price; going with the trend is the way to go.
Second, the three bad habits of high-frequency trading: forcing trades, frequent trading, and impulsiveness.
1. Forcing trades: placing orders impulsively before the K-line is complete.
This is a typical symptom of FOMO (fear of missing out). Seeing others make money makes you itchy, but once you enter, you get stuck.
My countermeasure: Write the entry conditions as 'if-then' pseudocode (e.g., IF volume breaks previous high + OBV indicator confirms, THEN go long), hang it on TradingView alerts, and let the phone ring only once; stay offline the rest of the time.
2. Frequent switching: if there is no signal for 15 minutes, switch to 5 minutes, then to 1 minute.
The higher the leverage, the shorter the chart period, the easier it is for your mindset to collapse.
The truth: Most profits come from daily trend levels; frequent short-term operations are just paying transaction fees to the exchange.
My habit: A maximum of 3 trades a day; if I feel itchy, I go lift weights or walk the dog.
3. Impulsive trading: rules written on paper, placing orders based on feelings.
This is the most fatal—treating the trading plan as a decoration.
Solution: Fill out the plan sheet (target, position, stop-loss and take-profit points) before trading; don't place an order if you don't fill it out.
For example, before I buy ETH, I must write:
Entry price: 1820U
Stop-loss: 1620U (down 10%)
Take profit: 2600U
Position: 15%
Black and white, force yourself to execute.
Third, why didn't I earn the money that should have been earned?
1. Did you miss the opportunity? Because you lack an 'early warning system'.
There are usually pre-signals before a market starts. For example, before I make an EMA12/26 golden cross, I must see the OBV indicator break the previous high.
My method: Combine multiple conditions into a composite alert (price + volume + indicators), pop-up + ringtone + Telegram Bot as three safeguards to ensure no signals are missed.
2. Did the opportunity come but you were afraid to enter? Because you are afraid of losses or the signal is unclear.
If you are afraid of losses: back-test the last 100 trades with the same signal; if the win rate is below 50%, optimize the system;
If the signal is unclear: break down the entry conditions into A/B/C points; all must be bright before opening a position.
For example: When I bottomed BTC in 2023, I had to meet the following conditions:
Price has retraced more than 50% from the high.
Fear and greed index below 20
On-chain whale addresses are increasing.
Only take action when all three conditions are met, ultimately achieving a 200% increase.
Fourth, military rules summary: Trading is like practice; surviving is the first step.
Position management is the lifeblood—don't let a single mistake ruin your account;
Stop-loss is a talisman—if you don't cut losses at 5%, you might lose 50%;
Only trade with the trend—don't go against the market;
Reject high-frequency gambling—3 trades a day is the limit;
Trading plans must be written down—can't rely on memory;
Use an alert system to catch opportunities—manual monitoring will miss signals;
Withdraw profits to secure your bottom line—only the money you've earned is yours.
Finally, I'll leave everyone with a phrase:
"Trading is like running a node; first calculate the electricity bill (risk), then think about mining profits. If you can't even pay the electricity bill, don't dream of getting rich."
Bull markets have many bubbles; bear markets require reflection. Learning to survive in the winter allows you to wait for spring to bloom.
Follow Xiang Ge to understand more first-hand information and precise points on crypto knowledge, becoming your navigation in the crypto world; learning is your greatest wealth!#加密市场反弹 #美联储降息 $ETH
