The Iron Laws of Blood, Sweat, and Tears from 100,000 to 30 million: 7 Trading Rules to Help You Survive
This is not a wealth code, but a survival manual I have earned with ten years of youth and countless liquidation events.
1. With small funds, act like a sniper, taking only one shot a day.
With a principal of 100,000, don’t mimic large players with high-frequency trading; aim to seize one certain opportunity each day. Don’t hold positions for more than 3 hours; transaction fees can wipe you out. Best hunting time? 4 AM during low liquidity or around major data releases; eat your fill and retreat immediately.
2. When good news lands, those who run slow become sacrifices.
When project parties shout out a signal = the main force is preparing to harvest. Remember: When good news peaks on the same day, reduce your position; clear your holdings directly at the next day's opening. There was a coin that claimed it would go to a major exchange, but plummeted 40% the next day. Those greedy enough to hold for one more day gave back 65% of their profits.
3. Before major events, staying in cash is king.
Start reducing your positions 3 days before the World Cup or Federal Reserve meetings. Historical data doesn’t lie: the probability of significant price fluctuations around such events is nearly 80%. Anti-human nature operation: wait until 3 stable K-lines after the event to enter, although you may miss the head of the fish, you can firmly hold the body.
4. Going all-in? That's a gambler's death knell.
Even for the most promising coins, only buy 30% of your base position. Add 20% when it drops 10%, and sell 10% when it rises 20%. The math is harsh: if you go all-in and face a 20% pullback, you lose 20%; if you are half in, a 20% pullback only means a 10% loss. Those who survive are the ones who understand the importance of leaving an escape route.
5. Sideways markets are graveyards for capital.
Only engage in markets that experience sharp rises and falls; during sideways movements, turn off the software and go to sleep. Entry signal: J value of the 15-minute KDJ drops below 0 and RSI is below 30; exit signal: J value surges past 100 but the price fails to rise, or the price drops below MA60. Statistics show that avoiding sideways periods can improve your winning rate by 40%.
6. Stop-losses must be as decisive as severing a limb to survive.
A loss of 3% must be cut immediately. After 10 consecutive wrong stop-losses, you still have 70% of your capital; but if you hold on until a 20% loss, after 3 wrong calls, you’re left with only half. I’ve seen the most tragic cases; a brother held on to ETH from making 80,000 to losing 150,000 and ended up having to sell his house to cover the losses.
7. The market is never short of opportunities, but it lacks survivors.
Behind every wealth myth are countless nights of liquidation. Remember these lessons earned with real money; they are worth more than any technical indicator.