Brothers, today I really laid my heart bare! From 100,000 in principal to 130 million in net assets, this journey has been incredibly difficult, with countless pitfalls and tears, known only to myself. If I had understood these principles two years earlier, I could have made at least an additional 60 million! I hope these lessons, bought with real money, will be etched in your memory, so you can avoid detours.

1. The Survival Path of Small Funds: Don’t waste 100,000 in principal

I remember when I first entered the market, like you, I was itching to trade every time the market fluctuated, always thinking that more trades would lead to more profits. With 100,000 in principal, watching the market every day, buying and selling incessantly, the fees flowed out like a river, and I eventually realized that the money I earned wasn’t even enough to cover the exchange fees. Later I understood that small funds are like a hunter in the grasslands; you have to be patient, focusing on one major fluctuation each day, just like a lion waiting for the best moment to hunt, striking decisively and then finishing. Holding positions for over 3 hours? I was so foolish back then, always thinking that holding a little longer would earn me more, but often it was a futile effort. Remember, with small funds, you have to cherish every opportunity and don’t waste your principal on meaningless trades.

2. Good News Implementation: Beware of that invisible sickle

Once, a certain project party boasted extravagantly about major collaborations that would revolutionize the entire industry. At that time, the market was buzzing; everyone thought this coin would surely soar. I was also excited, thinking I would make a fortune. But guess what, I didn't sell that day; the next day, although it opened high, it plummeted immediately, and many people didn't even realize it and ended up getting wiped out. It was only later I understood that good news coming to fruition means the main players are offloading; they had already made their moves and were just waiting for retail investors to pick up the slack. Just like the story of the boy who cried wolf, when the good news is truly realized, it’s when the wolf shows its fangs. Don’t be that foolish shepherd; the day good news is realized is when you should exit, even if you have to sell everything to run, don’t let yourself become a victim.

3. Major Events: Early liquidation is a sign of respect for the market

I remember during the 2022 World Cup, I thought the market wouldn’t fluctuate much, so I didn’t take my position seriously. But on the day the World Cup opened, the market suddenly took a nosedive, catching many people off guard. And events like the Federal Reserve's interest rate hikes can create chaos in the market every time. History has shown many times that in the face of major events, the market behaves like a runaway horse, completely disregarding common sense. Reducing positions three days in advance, or even going to cash to observe, isn’t cowardice but a sign of respect for the market. It’s better to follow the trend after the market has moved, even if it means earning less, at least it ensures you won’t get drenched in the storm. Don’t gamble against the market; the market is always right, and we can only go with the flow.

4. Full Position for Mid to Long Term: That’s something only a fool would do

I once made such a foolish mistake, thinking a certain coin would definitely rise 10 times, so I went all in. At first, it did rise significantly, and I felt great, thinking I was a stock god. But who knew, when it retraced 20%, my mindset collapsed, watching my funds constantly shrink, and I had to cry while cutting losses. Later I realized that position management is fundamental for survival. Even if you are optimistic about a coin, you should first buy 30% of your position, keeping the rest for when it dips. It’s like going to war; you need to have a reserve force, otherwise, when you encounter a counterattack, you won’t even have a chance to fight back. Remember, staying alive is essential for making money; going all in puts you in a dead end, so don’t be that foolish.

5. Short-term Trading: It's all about thrill and discipline

When the market is soaring and plunging, it's really a thrilling game! Watching the 15-minute K-line chart, seeing the J value of the KDJ indicator inching up, when it exceeds 100, my heart races like seeing a danger signal, I have to get ready to run. When it drops below 0, it feels like an opportunity, cautiously looking for a chance to enter. But when the market is stagnant, it’s like still water, with no waves at all. At that time, trading is just a waste of time and money. I once didn’t believe in superstition during a stagnant market, thinking I could seize an opportunity; in the end, trading back and forth cost me a lot in fees, but I didn’t make any profit, and I had to helplessly go play mahjong for some fun. So, short-term trading requires discipline; act when you need to, and rest when you need to.

6. Be Ruthless with Loss-Cutting: Holding onto losing positions is a waste of money

I've seen too many such examples, including myself. The direction was wrong, thinking to wait and see, maybe it will bounce back immediately, but the longer I waited, the more I lost. From losing 10,000 to 100,000, eventually blowing up my account; that kind of pain can only be understood by those who have experienced it. Stopping losses is like buying insurance for yourself; though it hurts to cut losses, at least you can preserve your principal and have a chance to make a comeback next month. Don’t fight the market; if you’re wrong, you’re wrong. Timely loss-cutting is not admitting defeat, but a way to better stand up again. Remember, in the crypto world, preserving your principal is more important than anything else.

7. Mindset Collapse: Closing your account is a protection for yourself

In the crypto world, one day is equivalent to a year in the human world, and this saying is not at all false. I've seen too many people who, when they made 5 million, felt like the world's richest person and boasted everywhere, only to lose 8 million in the blink of an eye, shattering their mindset and leaving them in a slump. When prices rise, don't fantasize about being a stock god; when they fall, don't curse the heavens. The crypto world is this cruel, allowing you to fall from paradise to hell in an instant. If your mindset is unstable, even if you are given 100 million, you could still end up with negative returns. My mindset is steady now; I don't get arrogant when I profit and don't get disheartened when I lose, because I know this is the norm in the crypto world. If one day you find your mindset collapsing and can't control your hands, then just close your account, temporarily leave this market, and come back when your mindset is readjusted.

Brothers, these are experiences earned through painful lessons, and I hope you remember them. The crypto world is full of temptations and risks; only by maintaining a clear mind, strictly adhering to discipline, and controlling your mindset can you survive in this market. Remember, staying alive in the crypto world is more important than anything; we have a long way to go!


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