Surviving in the cryptocurrency world relies not on miraculous trades, but on discipline.
Three months ago, a fan reached out to me with only 1500U left in their account, anxiously asking how to break even. I didn't provide a complicated strategy; I simply shared three basic rules. Three months later, their account balance exceeded 15000U.
Behind this tenfold growth, there were no miraculous hundredfold trades, no luck involved, only strict adherence to three ironclad rules. Today, I will share these with you, believing they can help you avoid unnecessary detours.
01 Capital management: Treat the principal as your last bullet.
The biggest mistake many make in the cryptocurrency world is to bet all in. The market is highly volatile, and a single misjudgment can wipe out your account, leaving no chance for recovery.
My first iron rule for him is: split funds, refuse to gamble big.
1500U split into three 500U:
A plan for intraday trading, a maximum of two trades per day, decisively stop-loss if wrong, never linger in battle.
A wait for a major trend, stay out if there are no clear signals on the weekly chart.
A portion as spare funds, firmly not to be touched, guarding the bottom line of capital.
This follows the classic principle of risk diversification. Cryptocurrency experts understand that surviving is the future, and retaining spare funds is the bottom line for survival.
02 Trend trading: only eat fish belly, do not be greedy for the whole fish.
Most of the time in the cryptocurrency market is in a volatile range, which has become a meat grinder for most traders. Hard resistance to volatility will only lead to repeated harvesting.
My second iron rule for him is: when the market is unfavorable, use short-term trades to earn small money as a base, and let the trend positions exert strength when the trend is clear.
His entry signal is extremely simple: never hold positions if moving averages do not form a bullish arrangement. Only decisively enter when there is a volume breakout at key levels and confirmed by the closing.
The key to profit handling: withdraw half of the profits immediately when the account profit exceeds 20%, and set a trailing stop for the remaining part. This preserves profits and allows room for the market to continue developing.
This coincides with classic trading wisdom: eat fish belly but not the whole fish, give up the illusion of capturing the highest and lowest points, and only earn the safest segments in between.
03 Emotional discipline: use rules to combat human weaknesses.
Greed and fear are the biggest enemies of traders. The cryptocurrency market operates 24 hours, with dramatic price fluctuations that can easily amplify human weaknesses.
The third iron rule is: lock in emotions, firmly adhere to the execution bottom line.
He always adheres to two points:
Automatic stop-loss at 4% single loss, no hesitation, no averaging down.
When profits reach 8%, push the stop-loss to the cost line, allowing profits to run.
This adheres to the core principle of trading: lose small and win big. A single loss does not affect the overall situation, while a single profit can cover multiple small losses.
The cryptocurrency market lacks stars but is short on longevity. Successful traders do not lack emotions but use rules to restrain them.
04 The underlying logic of survival in the cryptocurrency market.
The cryptocurrency market is never short of fast-paced speculators, but what is lacking are those who can adhere to rules and survive until the end.
Many people are obsessed with complex indicators and mysterious news, but ignore the most basic trading principles. Real stable profits often come from making fewer mistakes and protecting capital with these three basics.
I have seen too many cases of overnight losses and witnessed traders who achieve stable growth through discipline. Their common point is: engrave trading discipline in their bones.
If you can stick to these three iron rules, believe that you can also stand firm in the waves of the cryptocurrency market and wait for your opportunity.
There are opportunities every day, but capital only comes once. Let’s encourage each other.
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