Last year, I turned a principal of 50,000 into 5 million through three rounds of investment. However, during the same period, over 50 imitators went bankrupt and lost everything.
1. The three major cognitive traps of the poor
Why do people always lose money?
1. Technical analysis can predict price fluctuations → But the most accurate candlestick trader in 2023 lost everything in the FTX crash.
2. A sharp decline means risk → The real investment opportunities often arise when the market is most fearful (fear index > 90).
3. Contracts = gambling → But using spot profits to open 3x leverage is the real legal robbery.
Comparison case:
A (ordinary retail investor): 500,000 principal, earned 200,000 in 2023, spent 100,000 on fees.
B (roller): Started with 50,000, turned into 5 million after three key market movements.
Where is the difference? Chapter two reveals it.
2. The three iron rules of rolling investment (Survivor's bias)
[Iron Rule 1] The initial position must be small, and the stop-loss must be strict.
Initial position ≤ 15% (with 50,000 principal, the first trade is only 7,500).
Stop-loss ≤ 5% (cut immediately if it drops, this rule saved me 300,000 during the false ETH breakout in May 2023).
[Iron Rule 2] Profits must be rolled, but do not be greedy.
Once the spot doubles, immediately withdraw the principal (500,000 becomes 1 million, first withdraw 500,000 to secure the capital).
Only use pure profits to open 3x contracts (the key to turning 2 million into 5 million).
Mandatory liquidation on the 25th of each month.
(Avoid the quarterly delivery crash in trading venues).
Shut down for 24 hours after gaining 300% profit (to prevent emotional trading).
3. Gruesome death cases (90% of people fall here)
1. March 2023 - BCH pulse market
Correct action: Chase the breakout with a 5% increase (actual increase of 80%).
Wrong action: Go all-in with 10x leverage (liquidated within an hour).
2. November 2023 - False ETF news
Survivor: Lock in 3 million profit by closing immediately when good news is realized.
Liquidator: Continued to add leverage (lost 2 million the next day due to a sharp decline).
4. Dynamic rolling investment practical template (directly applicable)
Market phase | Initial position ratio | Stop-loss range | Additional position signal | Take-profit strategy
Bull market | 15% | 4% | Volume breaks previous high | 7-day moving average turns
Bear market | 8% | 3% | Fear index > 85 | 3-day amplitude > 30%
Extreme market | 5% | 2% | Exchange downtime | Run when good news is realized.
If you cannot achieve the following 3 points, please stay away from contracts immediately:
1. When you earn 2 million, you can actively withdraw 1 million.
2. After 5 consecutive stop-losses, are you still willing to open the 6th trade?
3. Have a physiological aversion to FOMO emotions.
This is not advice; it is life-saving.