Once unable to sleep at night due to emotional trading losses! Now earning a steady income of over $1000 every day, and this is not just luck, but the victory of strategy and discipline.

If you are new to the market and often face the risk of liquidation, the following three capital protection methods may help you avoid the pitfalls I once encountered.

First line of defense: Divide positions into three layers, never fully loaded.

Divide your funds into trial positions, main positions, and spare positions. When entering for the first time, do not exceed 10%, and after confirming the trend, gradually increase to the main position, leaving the spare position always out of the market. This can prevent severe damage to your account from a single wrong judgment, keeping enough ammunition for counterattacks.

Second line of defense: Pre-set stop-loss, refuse to hold positions.

Every trade must have a stop-loss, and the stop-loss amount should not exceed 2% of the principal. Do not wait for the market to decide the outcome for you; set exit points in advance, and exit when touched. Losses can be controlled, and your mindset will not be easily dragged down by fluctuations.

Third line of defense: Profit locking in layers, securing gains.

Once profits reach a certain percentage, gradually transfer some profits out or invest in stable assets. For example, when profits exceed 20%, withdraw half first, allowing the remaining profits to continue growing. This protects your achievements and reduces the pressure of holding positions.

The market is never short of opportunities; what it lacks is the ability to survive long-term. Real change starts when you no longer chase every wave of ups and downs but focus on executing your own rules. Start with capital protection, gradually taking back control of your trading. On this path, steady progress is more important than speed.