Six Principles for Survival in the Crypto World: Stay Away from Liquidation, Move Towards Stability

1. Ironclad Profit Taking and Stop Loss:

Profit Taking: Restrain greed, set preset goals. Prices will not rise forever; taking some profit is a success.

Stop Loss: Execute decisively! Give up on sunk costs; exit immediately when breaking levels. “Amputation for survival” protects principal; fantasizing about reversals can be costly.

Core: Money in the crypto world is endless, but principal can be lost completely!

2. Refuse Frequent Trading:

Don’t indulge in “double profits from long and short”; being able to profit from one side is enough.

Beware of Fees: Especially on high-leverage contracts, opening a position incurs a loss (1-2%). Ensure potential gains far exceed costs; otherwise, trading is meaningless.

3. Learn to Wait with No Positions:

If you cannot understand the market, do not open a position! “Missing out” is far better than “losing.”

Trading is a probability game; entering when the direction is unclear is like “opening a blind box.” Patiently wait for high certainty opportunities. (Hedging can reduce directional risk but is not a cure-all)

4. Gradually Accumulate:

Abandon the fantasy of getting rich quickly. Use light positions (like opening a 10x leverage with 100 capital) to steadily accumulate (like earning 10-20 yuan per trade).

Pursue a win rate (60-70%): A few stable trades daily far outweigh heavy gambling. Little by little accumulates, and compound interest can be considerable.

5. Never Over-leverage:

Absolute taboo! Black swan events (like sudden negative news) can instantly destroy heavily leveraged accounts.

Test the waters with light positions, prioritize stability. The crypto world is not lacking in opportunities (still present in the next 10-20 years); staying alive is essential to seize opportunities. Don’t be fooled by short-term illusions.

6. Strive for Unity of Knowledge and Action:

The most difficult but crucial! Overcome human weaknesses (greed, fear, luck).

Eliminate unplanned, random trades. Success requires:

An attitude far beyond the ordinary

Courage to act when the time is right

Discipline to exit decisively at stop loss

Determination to amputate for survival

Core Summary:

The core of stable profits is Risk Control (stop loss/light positions/no positions) + Discipline Execution (profit taking/not frequent/not over-leveraging) + Mindset Training (unity of knowledge and action).

Remember: Protecting your principal is the top priority; opportunities are always reserved for those who are alive and prepared.