Rules are more important than luck
Last winter, a fan with a cartoon panda avatar found me and timidly asked, 'Bro, I only have 600U, can I still survive?'
I smiled and replied, 'As long as you don't mess around, 600U can also turn into 600U0.'
I can feel his skepticism, but more clearly, this young man genuinely wants to learn some real skills. Thus, we began our three-month transformation journey.
At the beginning, he was so nervous that he couldn't even place an order, staring at the K-line for half an hour without daring to confirm, fearing that as soon as he entered the market, he would lose everything. I told him, 'We don't fight hard; we fight to survive.' This became his motto.
On the first day, we only made one trade. The market fluctuated by 3%, and he made $18. I told him, 'This $18 is not money, it's confidence.'
In the second week, his account grew to $900; a month later, it broke $6000; after three months, the account balance reached $20,000, with zero liquidation throughout!
Many people may think this is a fantasy, but I know that he gritted his teeth and relied on three rules to get through it.
The power of three rules.
First rule: Capital is one-third; never go all in.
$600 divided into three parts. $200 for day trading, only taking profits from Bitcoin and Ethereum fluctuations; $200 waiting for swing opportunities, not being greedy, holding for three to five days; the remaining $200, stay put, no matter what. I told him, 'That is survival money, your confidence to restart.'
Position management is the first element of survival. Many people are always envious of others getting rich overnight, so they go all in, and end up losing everything when they encounter a black swan. The core of diversification is not maximizing profits, but controlling risks.
Second rule: Follow the trend, don’t grind the market.
When the market is unclear, patiently wait. Once there is a clear signal, strike decisively. After making a 12% profit, withdraw half immediately to secure the gains.
He later told me, 'I used to watch the market every day, exhausting myself physically and mentally. Now I’ve learned to wait, and the market comes to me instead.' In the crypto world, patience far outweighs so-called cleverness.
Third rule: There is discipline in stop-loss and take-profit.
I asked him to limit each trade's stop-loss to no more than 2% of the capital, and to reduce his position by half when profits exceeded 4%. Over these three months, he strictly adhered to this rule.
Many people fail because they want to earn more after making a profit and refuse to admit defeat after a loss. As a result, small losses turn into big losses, and big losses lead to zero. True traders understand that the market is never short of opportunities; what is lacking is capital.
The transformation from 'gambler' to 'hunter'.
Over the past three months, I watched him transform step by step from panic to composure, from a 'gambler' to a 'hunter'. He no longer blindly chased every trend but patiently waited for his own opportunities.
I asked him, 'What are you most afraid of now?'
He pondered for a moment and replied, 'I’m afraid that one day I’ll drift away and forget the rules.'
I smiled. Those who can say this have already won half the battle.
Now his account has steadily exceeded $20,000, and he occasionally leaves messages in my friend circle: 'Bro, I earned my life by listening to you at the beginning.'
My trading insights.
1. A small capital is not scary; what's scary is a big mindset.
Many people do not last long in the crypto world, not because of a lack of capital, but because of an impatient mindset. They want to double their investment as soon as they enter the market, hoping for overnight wealth, but the result is often being wiped out by the market.
The crypto world is never short of opportunities; what is lacking is longevity. Use compound thinking for trading—to double every year means eight times in three years. This is far more reliable than pursuing overnight wealth.
2. The rules are your only protective charm.
In this tempting and risky place called the crypto world, your trading rules are your only protective charm. I have also experienced the process of inflation to zero and know the importance of self-discipline.
Many beginners tend to believe in various complex technical indicators, but the simplest rules are often the most effective. The difficult part is not understanding these rules, but being able to stick to them during market frenzy.
3. Staying alive is more important than making money.
In the cryptocurrency world, black swan events are common. The only thing that can protect you is not predictive ability, but risk control. In my trading system, capital preservation always comes first.
Why do most people lose money? Because they are always studying 'how much money can be made', while truly smart traders only consider 'how much money can be lost'. If losses are controlled, profits will naturally come.
In this market, true experts are not those who make profits every day, but those who can remain steady during fluctuations and resist temptations.
If your capital is not large, do not be discouraged. Small funds have their own methods; the key is to establish correct trading habits and rule awareness. Remember, slow is fast, and less is more.
The crypto world is like a marathon; it's not about who runs the fastest, but who runs the longest. I hope the experience of this 'Panda Avatar' friend can inspire you.
A single tree cannot form a forest; a lonely sail cannot travel far! The journey of trading is lonely, but you don’t have to walk alone.
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