Last winter, when I sent a screenshot of my crypto account balance to a friend, my hands were shaking. Behind that glaring '0.00' was 500,000 real money and my nearly collapsed life. After breaking my third phone, I locked myself in my room for two months, with the curtains drawn tightly, only daring to let takeout be placed at the door. At that time, I truly felt that all my financial luck and spirit in this life had been invested in this hell of volatility.
Until one early morning, as I stared at the ceiling, I suddenly realized: the market will never pay for anyone's tears; either admit defeat and exit, or come back with a clear mind. At the beginning of this year, I quietly returned with 3400U, not daring to tell anyone. To my surprise, this time, not only did I fill the hole of losses, but I also made more than 20,000. It wasn't just a stroke of luck, but the three iron rules taught to me by the pitfalls I had encountered, which I am sharing from the bottom of my heart today.
First iron rule: not fully invested is leaving a way out; the stop-loss line is a lifeline.
I used to think that 'wealth is gained through risk', and every time I encountered so-called 'hundredfold potential coins', I would go all in, but the result was often standing guard at the mountain top down to the foot. Now I have set strict rules for myself: no single investment exceeds 40% of the position, even for the most promising targets, I force myself to keep 60% as a 'safety cushion'. More importantly, the stop-loss line - as long as a single coin loses more than 15%, no matter how conflicted I feel, I will immediately cut losses and exit.
Many people will say 'it's already dropped so much, maybe it can rebound if we wait a bit longer', but the cruelty of the crypto market lies in the fact that it can turn a 15% loss into an 80% loss. Keeping that 60% position means you still have the capital to turn things around; holding onto the 15% stop-loss line ensures that one mistake won't drag down the entire account. This isn't cowardice; it's a basic quality for surviving in this market.
Second iron rule: following the trend is ten thousand times more reliable than 'guessing tops and bottoms'.
I used to be obsessed with 'catching the bottom and escaping the top', calculating support and resistance levels every day, always fantasizing about buying at the lowest point and selling at the highest point. What was the result? Either buying halfway up the mountain or escaping before takeoff. Later, I completely gave up this 'divine operation' and chose to follow the trend: when the market is clearly rising, I look for strong coins to go long with light positions; when a breakdown signal appears, I decisively go short.
Don't underestimate this 'going with the trend'; during the sharp drop in March this year, I made over 3000U in just ten minutes by shorting. The market's trend is like a flood; going against it will only lead to being crushed to pieces. Following its direction, even if it’s a bit slow, is better than being washed ashore. Remember: we are participants in the market, not predictors.
Third iron rule: profits should be 'taken off the table', rolling over only invests 30%.
This is my most common old problem - in the past, when I made money, I thought about 'letting the profits fly a bit longer', but the result was often a change from profit to loss, a false joy. Now I strictly implement 'profit allocation': for every earnings, I only keep 30% in the account for rolling over, and immediately withdraw the remaining 70% to a safe account. No matter how good the market is, I will never break this ratio.
Some people think this will cause them to miss out on 'big trends', but for ordinary investors, 'steady progress' is more important than 'getting rich overnight'. Taking profits can enhance confidence and avoid losses caused by sudden market corrections. I once helped a fan grow from 1000U to over 5000U by using this method - withdrawing profits first and then continuing to operate with the remaining funds leads to a more rational mindset.
The current market has started; only 'sincere people' should walk together.
Recently, there has been significant movement in the market; the Federal Reserve's signals for restarting interest rate cuts are becoming clearer, and liquidity expectations in the crypto market are improving. Many targets have already begun to show obvious trending markets. But I must remind everyone: the better the market, the more clear-headed you must remain. Those who shout 'go all in to get rich' are either newcomers or have ulterior motives.
