In the crypto market, most losses do not come from making wrong predictions, but from poor capital management from the outset. Many people 'blow their accounts' not because the market is highly volatile, but because they bet too big, have no stop points, and let emotions control their trading decisions.

In reality, crypto is not a game of chance. It is a market that operates on probabilities, where the survivors are those who know how to protect their capital, manage risks, and only take portions of the market that are allowed. Below are 3 core principles that help many traders navigate both bull and bear markets while maintaining stable growth.

1. Always keep profits with a 'Safety Valve', and keep capital in a bulletproof vest

The first and most important principle: Every trade must have stop loss – take profit.

No exceptions.

The reason is very simple: the crypto market is too volatile, just a 3–5% swing is enough to wipe out accounts using high leverage or all-in.

How to operate safely:

  • When profits reach ~10% of total capital, immediately withdraw 50% of the profits to a cold wallet or private account.

  • The remaining part continues to run with the trend.

  • Never add more capital outside of the plan to 'seize opportunities'.

Why is this method effective?

  • Ensure the principal is not damaged.

  • Profits are 'locked in', not swept into sudden trend reversals.

  • More stable mindset, not dependent on small fluctuations.

In many market cycles, traders who consistently apply this principle maintain stability: when the market corrects, they only lose a small part of the unwithdrawn profits, never letting capital turn negative.

One of the biggest mistakes newcomers make is trading only by looking at the 15-minute chart, making them prone to being 'led by the market'. A more effective method is to coordinate 3 time frames to determine the trend – fluctuation range – entry point.

Setup:

  1. Day (D1) – determine the main direction
    Based on MA60:

    • Price above → uptrend

    • Price below → downtrend

  2. 4 hours (H4) – find the fluctuation range
    Use Bollinger bands (BOLL):

    • Touch upper band → easy adjustment zone

    • Touch lower band → easy bounce zone

  3. 15 minutes (M15) – choose the timing to enter orders
    Based on RSI:

    • RSI overbought → look to sell

    • RSI oversold → look to buy

Optimize profits with 2 parallel orders

  • Trend-following trades: Open when D1 confirms breakout.
    Stop loss set below the previous D1 low.

  • Adjusting trades: Open at the extreme points of H4 (upper/lower BOLL).

All trades must:

  • Risk limit ≤ 1.5% of total capital

  • Aim for a minimum profit of 5 times the risk

Thanks to this method, even in a volatile market, traders can still earn additional profits from the natural retracements – adjustments of price, instead of being shaken into panic.

3. Use Small Stop Losses to Capture Large Market Portions — Winning Many Is Not as Good as Winning Big Once

Many people try to improve the win rate, but that is the wrong goal.
In professional trading, a low win rate does not mean losing.
The most important thing is the R:R ratio (risk:reward).

A solid strategy only needs to win 30–40%, as long as:

  • Each losing trade loses 1 part.

  • Each winning trade earns 4–6 parts.

When the average profit expectation per trade is positive, the win rate, whether high or low, doesn't matter.

Three 'life-and-death boundaries' help reduce 80% of risks:

  1. Divide capital into 10 parts
    Each trade uses a maximum of 1 part, total position not exceeding 3 parts.

  2. Lose 2 consecutive trades – immediately stop trading
    When emotions intervene, skills become meaningless.

  3. Account doubles → withdraw 20% to a safe investment channel
    Keep capital for reinvestment when the market corrects.
    This is how to create a healthy financial loop, not dragged back to zero by the market.

Conclusion: Those who make money in crypto are not the ones who guess correctly, but those who survive long enough.

After many significant fluctuations – from the bull market of 2021 to the bear market of 2022 – the most important principle remains unchanged:

Not managing capital = No future in the crypto market.
Preserve capital → preserve opportunity → preserve profits.

Crypto is always full of opportunities, the only thing needed is a strong enough discipline system not to self-destruct.