Three years ago in the early morning, I was awakened by a liquidation alert from a certain exchange. In just three hours, the more than 1 million U in my account was wiped out.
I stared at that fluctuating negative number, and I was almost in despair.
After that, I began to reflect, summarize, and constantly consult with relatives and friends, ultimately starting over with a borrowed 200,000.
After 90 days of effort, using a method with a win rate of 78%, I grew my principal to 20 million. Although this process was arduous, it also brought about five "iron rules" that I have adhered to ever since.
Whether you are a newcomer just entering the circle, an experienced veteran, or even an investor currently trapped, you must remember these lessons.
Trading cryptocurrencies is not gambling, but a battle; a "risk control system" is essential.
Risk control in position building: perpetual contracts are not gambling tools; no matter how high the leverage, as long as the position is light and the stop loss is clear, the risk is actually smaller.
What truly destroys people is never the market, but the lack of risk control and the mindset of not admitting mistakes.
Emotion is not a strategy; discipline is the way out.
Retail investors lose money; 90% die chasing highs and cutting losses.
Operational discipline: set your buying price, stop loss, and target before buying; increase your position when profitable, reduce your position when losing, and do not average down.
Charting skills: don’t get emotional watching candlesticks, just look at trading volume and structural changes. The truth of price movements is hidden in trading volume.
Only trade the logic you understand, don’t chase hot trends, and don’t touch emotional coins.
Do not be lured by the myth of getting rich in the crypto circle; following trends is far less effective than focusing on familiar mainstream coins and strategies.
Core strategy: do not touch coins without independent logic, and do not buy coins without understanding sector structure.
Do not average down, do not hold onto positions, do not cling to past prices.
The first step to loss is averaging down; averaging down is an emotional response wanting to break even, not a strategy.
Stop loss discipline: if the position is wrong, it should be stopped out, not averaged down.
Refine one model, and only expand after stabilization.
Single strategy: one market sense, one technique, one model; first, get it thoroughly understood.
Execution: mastering one method is far more efficient than blindly chasing after more.
Finally, remember that making big money is not because you caught a certain market wave, but because you endured how many crashes, resisted how many temptations, and avoided how many impulses.
The crypto circle is full of uncertainty and challenges, but it also contains enormous opportunities. Only by calmly and rationally responding to market changes can you steadily earn profits.