The numbers on the screen cruelly fluctuate, assets plummeting from millions of U to 30,000 U. The suffocating feeling of that moment is still vivid in my memory. It was this despair that taught me the most valuable investment lesson of my life.
Watching my hard-earned assets flow away in a short time like a flood breaking through a dam is an experience akin to heart surgery. I still remember the moment I slumped in my chair, my mind blank, and the entire world fell silent.
But it was this despair that became a turning point in my trading career. Today, what I want to share is not the secret to getting rich overnight, but how to rise from failure and survive in the market long-term with rationality and discipline.
Lessons learned: emotions are the biggest enemy of trading.
Reflecting on my losses, almost every major loss stemmed from emotional decisions.
Greed when the market rises, fear when it falls. Frequent operations, full-position bets, blindly chasing rises, greed during profits, and stubbornly holding during losses—these five irrational behaviors, I used to exhibit them all.
Especially the last time, when assets shrank significantly, instead of calmly analyzing, I held the mindset of 'betting to recover,' and the result was naturally worse. The 'disposition effect' in behavioral finance is vividly reflected in me: selling profitable positions too early while holding losing positions for too long.
The road to rebirth: the transformative power of three iron rules.
Starting over from 30,000 U, I set three iron rules for myself that cannot be violated:
1. Position management is the foundation of survival.
No single position should exceed 10% of total capital, and any single trade loss reaching 150 U should trigger an immediate stop loss. This seemingly simple principle is the cornerstone of my turnaround journey.
Data shows that position management is even more important than selecting coins. Keeping crypto assets within 5% of total household assets can effectively reduce psychological pressure and avoid impulsive decision-making.
2. Profits tiered, capital is king.
Whenever I make a considerable profit in trading, I immediately withdraw the principal, leaving only profits to continue rolling. This strategy ensures that even if there are subsequent losses, the fundamentals are not harmed.
This coincides with the 'iron rules' of on-chain trading: unrealized gains do not equal real profits; taking profits is the only standard for profit realization.
3. Stop loss, not take profit, but adjust dynamically.
I realized that trying to sell at the highest point is itself a form of greed. Now, I adopt a 'trailing stop' strategy: every time the price rises by 15%, I adjust the stop loss line up by 12%. This way, I can capture the trend while ensuring that profit pullbacks are controllable.
Practical case: the art of stable trading.
Let me share a specific operational case.
During last year's rebound of ETH, I first tested the waters with a light position, earning 900 U, then gradually increased the position to 1350 U, but always rolled the profits, keeping the principal safe. When the market showed signs of fatigue, I decisively triggered the trailing stop to exit, preserving most of the profits.
The core of this strategy is: when making money, be like a clever fox and take profits in time; when losing money, be as decisive as a firm referee and stop it quickly.
Psychological construction: the invisible cornerstone of successful trading.
In the cryptocurrency market, psychological factors are often more important than technical analysis.
I spend ten minutes every day on 'psychological preparation,' reminding myself of common psychological pitfalls in trading: fear and greed, overconfidence, herd mentality, and loss aversion.
Regularly reviewing trades is also an indispensable part. I record the reasons and results of each trade, analyze the experiences of success and failure, and gradually optimize my investment strategy.
A few heartfelt words for traders who are still struggling.
If you are also in a predicament and feel hopeless about turning things around, please remember:
The market always has opportunities, but once the principal is gone, it's really over. In this 24-hour operating market, living longer is a thousand times more important than making money quickly.
Avoid frequent trading. Data shows that low-frequency traders have an annualized return of 18.5%, significantly higher than high-frequency traders at 11.4%. Less trading often results in more gains.
Do not easily use high leverage. The $19 billion liquidation incident on October 11 saw most victims using leverage above 20 times. Remember, the higher the leverage, the quicker you fall.
In the crypto world, there are no feelings, only rewards for disciplined traders who can execute rules. In this market, systematic trading discipline and reliable trading strategies are the best defenses.
My experience proves that even climbing out of the abyss is not impossible. But the key lies in truly learning to control emotions, adhere to rules, and move forward steadily with strong execution power.
When you can layout your strategy while the narrative is budding, exit when emotions are running high, control risks with fixed stop losses, and lock in profits with realized gains, you can break free from the ranks of losers.
Market cycles are always repetitive; only those who grasp the rules can become the ultimate winners. Follow Xiang Ge to learn more firsthand information and precise points in the crypto world, becoming your navigation in the crypto space; learning is your greatest wealth! #美联储降息 #巨鲸动向 $ETH
