Discipline is the only rule for survival.
Friends, today I want to share something real with you. I have been in the crypto space for a decade, from a naive beginner to a professional trader. My biggest insight is that surviving in this market is a hundred times more important than making quick profits.
Watching waves of people around me get rich and then return to zero, I finally understand that the crypto world is not a casino, but a battlefield of discipline and cognition.
1. Stop-loss is like stepping on the brake while driving; it is a necessary cost.
I still remember when I first started, the most common thing I did was to 'hold on for dear life'. I hoped to break even after a 10% loss, thought it had bottomed out after a 30% drop, and ended up cutting losses only after a more than 50% decline; by then, I was severely injured.
Now my rule is simple: if I hit the stop-loss three times in a day, I close the software and lie down. This is not about luck; the market is clearly telling you: 'Brother, today is not your day; wake up!'
The market will go to great lengths to prove that the vast majority are wrong. A stop-loss is a protective measure; stubbornly holding on after making a mistake will definitely lead to bad outcomes.
2. Don't go against the trend; following the trend is the way to go.
In the bear market of 2018, I had a friend who insisted on bottom fishing against the trend, and the result was a blow-up that spread like fireworks. The market does not have a 'bottomed out' phase; it only has 'it can drop further.'
Now, there is a saying stuck on my computer screen: Don't short in a bull market, don't long in a bear market, the trend is the only reliable ally.
Real trading experts have not avoided failure; instead, they continuously summarize experiences and optimize strategies through failures. Trend following eliminates behavioral biases. In cryptocurrency, you will see excessive behavior and fear of missing out, all of which can be captured through systematic strategies.
3. Before placing an order, first calculate how much you can afford to lose, then consider how much you can earn.
When I was young, I only focused on how much I could earn when placing orders; now I first calculate how much I can afford to lose at most. If the profits calculated are not enough to cover two losses (risk-reward ratio below 2:1), then this trade is simply a fee paid to the exchange.
Risks worth taking are the only ones worth waiting in cash for. Last year, I waited for a BTC swing for a full 21 days, and a single trade earned back the profits of the previous three months. The crypto market never lacks opportunities, what it lacks is capital.
4. Frequent trading is the invisible killer of profits.
I once over-traded, executing dozens of trades in a day, only to find later that fees had eaten up 30% of my profits! Now my trading frequency has drastically decreased; I only make dozens of trades a year, minimizing the impact of fees by extending trading cycles and volatility.
I now crouch like a hunter waiting for prey: at most, I will place two or three trades a week, but each trade is observed for over 12 hours. Staying still is much harder than acting recklessly, but it allows me to avoid most pitfalls.
5. The stop-loss line is like a high voltage line; it must trip when touched.
The most painful lesson made me lose 40%. When I was down 10% initially, I kept fantasizing about a rebound, but it only got worse the longer I held on.
Now my stop-loss line is like high voltage, it automatically trips as soon as touched. Losing a little money is a normal cost, but losing a lot means being completely out. Accepting small losses and avoiding large losses is the key to long-term survival in this market.
6. Withdraw profits in batches when making money, turning numbers into real cash.
Making money tests a person the most! Previously, when my account was up 30%, I thought I was an investment god, overturned my profit-taking plan, and ended up giving all the profits back.
Now I have a strict rule: if profits exceed 20%, withdraw in batches, turning the numbers on the screen into real money in the bank. That's what it means to truly make money. You can use a partial profit-taking method, for example, sell 1/3 when it rises by 30%, sell 1/3 when it rises by 60%, and use a trailing stop for the remaining portion.
7. Position management is the way to survive.
Buying with all funds leads to deep entrapment, which is the most fatal mistake for beginners. I now strictly implement the strategy of 'dividing positions into three levels, never fully invested.'
I divided my funds into five parts, diversifying investments across different targets to avoid single-asset black swan risks. Always keep 20%-30% cash; there are new opportunities in the market every day, and liquid funds are your confidence.
8. Surviving in the crypto market relies not on intelligence, but on self-discipline.
After ten years, I finally understand: those who survive in this market are not the smartest but those who can control themselves.
Investing is counterintuitive: when others are afraid to enter, you must dare to lay out your strategy; when others are rushing in, you must dare to exit. A qualified investor always looks at the risk first, then at the reward—controlling risk will naturally bring rewards.
These rules may seem simple, but they are the experiences earned by countless people with real money. They are like life-saving amulets in the brutal arena of the crypto market, helping you avoid many pitfalls.
The crypto market never lacks opportunities, what it lacks is capital and patience. Adhering to these rules is to safeguard your capital for survival in this market.
Surviving is essential to waiting for opportunities. Not losing money is more important than making money. Follow Ake to learn more first-hand information and precise points of knowledge in the crypto market; becoming your guide in the crypto space, learning is your greatest wealth!#加密市场反弹 #美联储降息 $ETH
