Is trading coins a way to get rich? What does getting rich mean? Getting rich is relative. Turning 100,000 into 1,000,000 may seem rich to some, but people in Shanghai might scoff; 1,000,000 can only buy a decent toilet in Shanghai. Turning 1,000,000 into 10,000,000 allows you to buy a three-bedroom, two-living room apartment, which might be considered a 'normal citizen'. Therefore, getting rich is relative, and it depends on your principal amount. If the principal is small, no matter how large the profit, the absolute value is insufficient.
Only scale can generate benefits. To survive in trading long-term, one must consider investment risks and any possible occurrences. The essence of leveraged trading is that when in profit, positions should be gradually increased; when in loss, positions should be gradually reduced to minimize losses. This is the essence of trading!
I. Risk control system Dynamic management rules for positions
▫ Positive pyramid increasing position: profit positions increase in the ratio of 1:0.6:0.3
▫ Reverse razor reduction: halve the position of losing positions each time
▫ Leverage usage rate does not exceed 20% of account net worth
Ironclad stop-loss rule
Single loss ≤ 2% of total capital, daily loss ≥ 5% requires mandatory trading suspension, weekly loss ≥ 10% enters review cooldown period
II. Trading discipline framework
Signal filtering mechanism
✓ Triple verification system: fundamental + technical + emotional resonance
✓ Confirmation of key support/resistance level breakthroughs
✓ Volatility threshold trigger (ATR ≥ 2 times the average)
Time control principle: clear positions one hour before major data releases, stop trading for the day after three consecutive losses, halve positions during inactive periods (e.g., when US markets are closed)
III. Psychological management model
Response strategy for profit status
✔ Profit reaches 20% to extract 10% and lock in gains
✔ Reduce leverage by 10% after reaching a new net value high
✔ Set dynamic stop profit: automatically close positions after a 30% drawdown
Loss recovery process
① Trigger circuit breaker mechanism: suspend trading for 24 hours
② Execute trauma review: record emotional fluctuation nodes
③ Develop recovery plan: simulate trading for 2 weeks for validation
IV. Strategy evolution system
Diversified trading matrix
▶ Configure 3 types of uncorrelated strategies (trend/arbitrage/hedging)
▶ Dynamic adjustment of capital allocation ratio 5:3:2
▶ Quarterly strategy effectiveness assessment
Response to extreme market conditions
⚠ VIX index > 30 triggers crisis plan
⚠ Black Swan event triggers reverse hedging
⚠ Mandatory reduction of positions to 10% during liquidity exhaustion
V. Continuous growth mechanism
Trading log standards: record decision basis and emotional state for each order, mark strategy execution completeness (1-5 scoring system), weekly statistics on win rate/profit-loss ratio/max drawdown, cognitive upgrade cycle
▷ Read 2 central bank policy reports each month
▷ Participate in professional trading psychology training quarterly
▷ Annual strategy backtesting (10 years of data backtesting)
Core formula of survival rule:
Long-term survival rate = (risk control × discipline execution) / (emotional fluctuations + leverage abuse)
I hope coin friends read this carefully; it took me 2 days to organize. I hope my method can help you get rich this year.
