"Teacher, I'm about to jump off a building."
Three months ago, when this fan reached out to me, he only had 1200U left in his pocket and was buried in debt, with despair in his eyes. But just yesterday, he sent me a screenshot of his account: 80,000U, with no liquidation records.
Having been in this industry for a long time, I have seen too many talented young individuals go to zero overnight, and I have also seen lucky gamblers ultimately lose everything. But this time, I want to say something truthful: the greatest 'talent' in the crypto world is actually obedience.
First rule: Diversification is not a strategy; it is a lifeline.
I have seen too many newcomers who, as soon as they enter the market, go all in; they are ecstatic when it rises and devastated when it falls, completely trapped by the candlestick chart. So I told him: 'Don't touch any trades until you learn how to diversify your portfolio.'
I split his 1200U into three parts:
400U for intraday trading: only open one position a day; if the situation is not right, better stay in cash.
400U for swing trading: do not move until the trend is confirmed;
400U as the base position: even if the sky falls, don't touch it, keep it for a comeback.
Such a simple operation allowed him to retreat unscathed in the subsequent crash. Many people always want to turn the tables in one go, but the real rule of the crypto world is: to survive long is to laugh last.
Second rule: Don't be greedy for the whole fish; eating the body of the fish is enough.
Most of the time in the crypto world is in fluctuation; false breakouts, spikes, transaction fees... any one of these can swallow your capital. I told him: 'If there is no market, consider yourself dead; wait until the market comes before acting.'
How to execute specifically?
If profits exceed 20%, immediately withdraw a portion, pocket it for safety;
Never gamble with your temper: the market will not change direction because you hold a position.
Last week's wave of ZEC, he accurately caught the 'body of the fish', taking 30% profit in one go, his actions were as clean as a textbook. In contrast, those greedy people chasing highs and cutting losses have already been washed out.
Third rule: Treat yourself like a robot; emotions are the enemy.
Losses are hard to let go of, and profits are hard to part with — this is human nature, but it's also the meat grinder of the crypto world. I set strict rules for him:
Loss of 2%, stop loss unconditionally;
Make a profit of 4%, and you must reduce your position to lock in profits.
At first, he struggled, thinking 'holding a bit longer will make up for the losses'. But three months later, he said: 'Now cutting losses doesn't hurt, holding positions isn't anxious, and my heart rate doesn't accelerate when watching the market.'
The most ironic part of this industry is: smart people always want to challenge the rules, while ordinary people survive by following the rules.
Written at the end
The market never lacks stars, but lacks longevity. That fan who started with 1200U now goes to work as usual, eats as usual, and trading is just a side job. The three words 'follow the rules' sound simple, yet 90% of people cannot overcome this hurdle.
If you are still being led by emotions and always want to get rich overnight, I can only say: the market will eventually teach you how to behave, it's just a matter of time.
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