At three in the morning, the red light flashed on the screen, and I knew I had once again come close to sending myself away.
Looking at the remaining 1200U in my account, I slumped in my chair, my fingers still trembling slightly. A few months ago, I confidently entered the crypto market with 3600U, and in just two months my account soared to 8000U. I thought I was a genius.
And at this moment, the cruel reality tells me: I am just another self-righteous fool.
This experience has pierced my heart, but it has also led me to discover a set of 'three-blade' principles that brought me back to life. Today, I openly share this method in hopes of helping you avoid unnecessary detours.
1 Bloody Lessons: All losses cannot escape these three pitfalls
Looking back at that experience of almost being liquidated, I found that all my mistakes could be summed up in three fatal problems:
Mixing money, robbing Peter to pay Paul. After short-term losses, I was unwilling to accept it and actually used funds prepared for long-term arrangements to average down, resulting in a bigger hole.
Doing it hard without a trend, enduring without volatility. The market is obviously in a sideways consolidation, yet I frequently enter and exit, not only failing to make money but also wasting a lot of fees and energy.
Stop losses rely on feeling, profits rely on fantasy. When losing, I always fantasize about breaking even and am reluctant to stop loss; when profiting, I fantasize about doubling and do not understand taking profits.
After painful reflection, I realized that the key to solving problems is not to seek more opportunities but to control myself. So, I divided my account into three parts and assigned a clear mission to each part of the funds.
2 Three Blade Flow Mindset: A practical framework to keep oneself sane
First Move: Short-term Dagger - Quick in and out, maintain the feel
This money accounts for 20% of my total funds, specifically used for short-term operations. I have set strict rules for myself:
At most, trade two orders a day; don't be greedy.
Automatically stop trading for the day when losses reach 5%;
When profits reach 10%, immediately move the stop-loss to the cost price, never let profits turn into losses.
The purpose of this strategy is not to become rich quickly through short-term trading, but to keep my sensitivity to the market while controlling trading impulses. Like a dagger, small and powerful, suitable for close defense, but don't expect to win a war with it.
Second Move: Trend Long Gun - Patiently wait and hit the target in one strike
This is the major part of my capital allocation, accounting for 50% of the total position. The core of trend trading is one word: wait.
Do not enter the market decisively when the weekly chart shows no direction;
If the price does not break through the previous high, I will patiently watch the show;
Once the signal is established, try a small position, take half the profits at 30% profit, and set the remaining to a trailing stop to let the profits run.
This method requires the patience of a hunter. Just like using a long gun, most of the time you wait for the right moment and strike decisively at the critical moment. I no longer pursue capturing every fluctuation but instead wait for high-certainty opportunities.
Third Move: Lifesaving Shield - Guard the bottom line, and only by not dying can there be opportunities
The last 30% of my funds, I call 'lifesaving money.' It is not used normally and is only used in two situations:
Use it to supplement margin when the margin is about to reach the liquidation line;
When extreme market conditions occur and quality assets are mispriced, use it to buy the dip.
The significance of this money is that it gives me the capital to make mistakes and the confidence to survive. During two major market crashes, it was precisely because of this 'shield' that I did not get liquidated and could still get up and continue fighting.
3 Rhythm is more important than technique: The transformation from trading 80 times a month to 10 times
In the past, I traded up to 80 times a month, and the fees alone were enough to buy a new phone. Now, I control my trading frequency to less than 10 times a month, and my profits have instead steadily increased.
Why? Because I understand: frequent trading is the fatal injury of retail investors.
In short-term trading, I never fall in love with the battle; I grab the wool and run. In trend trading, I am not impatient, patiently waiting for the fish to take the bait. Many people have not lost money because they did not earn it, but because they earned and refused to leave, ultimately losing and exiting.
4 Write discipline into your blood: My three iron rules
I have a friend who always says, 'Wait a bit longer for a rebound,' only to watch a 50% profit turn into a 30% loss. This has made me even more convinced: in the crypto market, discipline is more important than IQ.
My three iron rules are:
Automate stop losses, never adjust manually. Set it up and strictly execute it, do not hesitate at critical moments.
Take profits in batches, don't eat the last bite of meat. The market cannot always rise; locking in profits is the way.
Leverage is used to control risk, not to dream. Don't use high leverage to prove how good you are; it is more likely to get you out quickly.
5 Surviving is more important than anything else
Looking back now, I really want to slap myself for those days of staring at the screen at 3 AM, heart racing, fingers hovering over the close position button.
In this industry, the ones who ultimately survive are not the best at technical analysis nor the luckiest - but the ones who can control themselves the best.
My 'Three Blade Flow' may not be suitable for everyone, but the philosophy behind it is universal: manage funds well, maintain emotional stability, and stick to trading discipline.
If you are currently feeling excited or have already lost to the point of numbness, remember my words: control your hands, cut your accounts, and clarify the mission of every penny. This is not the most exciting path, but it may be the one that allows you to survive the longest.
The market is always here, but your capital may not be. Protect it well, and you will have the qualification to continue the game.
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