Many people think I survive on technical analysis, but that's not true. The money I had in my wallet was long gone after I blew up my account; all that remains are the scars from lessons learned. Last year, a guy came to me with 2700U, saying he was left with nothing but his underwear after his losses and wanted to turn things around. I didn't explain candlesticks or MACD; I just shared three rules I learned the hard way. He followed them for three months, and his account grew to 50,000U without ever blowing up. Today, I’m breaking down these three rules; how much you understand depends on how tough you are on yourself.
Rule 1: Split the money into three parts; life is more important than profit.
I had him divide 2700U into three parts, with each part being 900U, and absolutely no use of it allowed.
For short-term positions: at most two trades a day; close the software immediately after. If you look at it for another second, the inner demons will emerge.
For trend positions: if the weekly line hasn’t formed a bullish arrangement and there’s no significant breakout above the previous high, just play dead. Moving during volatile markets is like giving the market a transaction fee.
Emergency fund: Only used to supplement margin at the edge of a liquidation, otherwise treat this money as if it doesn’t exist.
What the crypto world fears most is not liquidation, but losing the funds to recover after liquidation. You can survive with a severed finger, but with your head chopped off, you're truly finished.
Second rule: Only eat the body of the trending fish, don’t gnaw on the bones.
I was obsessed with 'buying low and selling high' in my early years, and as a result, I was cut nine times by the volatile market. Later, I completely realized: unless the trend is clear, it’s better to stay out and watch.
If the daily moving averages are not in a bullish arrangement, I resolutely do not open a position. Don’t be afraid of missing out; there are opportunities every day, and there’s only one principal.
Only when there’s a significant breakout above the previous high and the daily line stabilizes, do I test the waters with a small position. Once profits reach 30% of the principal, I take half off the table and set a trailing stop for the rest.
Don’t fantasize about eating the whole fish; just take a spoonful and leave. The river is always there, but your bowl might break at any moment.
Third rule: Treat yourself as a machine; emotions are poison.
Before trading, write the plan in black and white: stop loss at 3%, automatically cut at the set point, no excuse for 'let’s wait a bit'; when profits reach 10%, immediately pull the stop loss up to the breakeven point, as everything thereafter is money given by the market.
Shut down the computer at midnight every day; if I can’t sleep, I uninstall the app. The longer you look at the market, the more distorted your judgment becomes—I've told this to countless people, but most only understand it painfully after losing money.
Lastly, let me tell a true story.
During the same period, another brother brought me 1400U, trembling so much that he even typed the password wrong. I gave him these three rules anyway, and he followed them strictly, rolling it up to 54,000U in 28 days.
On the 29th day, he asked me: 'Old Chen, can I bring people along?' I didn’t reply.
On the 34th day, he heavily invested in a scam coin without reporting it and lost 43% in one go. On the 36th day, I blocked him. It wasn’t that I disliked him losing money; it was that he threw 'discipline' into the trash.
The cruelest thing in the crypto world is not the volatility, but it makes you forget who you are after making a fortune overnight. Those who last are not the ones who multiply their money a hundredfold, but ordinary people who repeat '30% profit, 3% loss, three positions for safety' a hundred times.
Remember: profit is the next bullet, not an invitation to revelry. The market is always open, but you must survive until the next opportunity arises.
Follow Xiang Ge to learn more first-hand information and accurate points in the crypto circle; become your guide in the crypto world, as learning is your greatest wealth!#加密市场观察 #巨鲸动向 $ETH
