Six Laws for Surviving in the Crypto World: Stay Away from Liquidation, Move Towards Stability
1. Ironclad Profit and Loss Management:
Take Profit: Restrain greed, set targets in advance. Prices won't rise forever, taking some profit is already a success.
Stop Loss: Execute decisively! Give up on sunk costs, exit when the position breaks. "Amputation for survival" preserves capital; fantasizing about reversals can be costly.
Core: Money in crypto can be endless, but capital can be lost completely!
2. Refuse Frequent Trading:
Don't fantasize about "double profits from both sides", making profits from one side is enough.
Beware of fees: Especially with high-leverage contracts, opening a position incurs immediate losses (1-2%). Ensure potential gains far exceed costs; otherwise, trading is meaningless.
3. Learn to Wait with No Positions:
If you can't understand the market, don't open a position! Missing an opportunity is far better than incurring losses.
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 it’s not a cure-all)
4. Gradually Accumulate:
Abandon the fantasy of getting rich quickly. Use a light position (e.g., 10x leverage on 100 capital) to steadily accumulate (e.g., earn 10-20 per trade).
Pursue a winning rate (60-70%): A few steady trades daily yield far better results than heavy gambling. Small amounts accumulate to significant sums, and compound interest is considerable.
5. Never Go All In:
Absolute taboo! Black swan events (like sudden negative news) can instantly destroy a heavily leveraged account.
Test the waters with light positions, prioritize stability. The crypto world has no shortage of opportunities (still present in the next 10-20 years); surviving is necessary to seize these opportunities. Don’t be misled by short-term illusions.
6. Strive for Unity of Knowledge and Action:
The most difficult yet crucial! Overcome human weaknesses (greed, fear, luck).
Eliminate random trading without plans. Success requires:
A mindset far beyond the ordinary
The courage to act decisively when the moment is right
Discipline to exit decisively at stop loss
The grit to "amputate for survival"
Core Summary:
The cornerstone of stable profits lies in risk control (stop loss/light positions/no positions) + disciplined execution (take profit/avoid frequent trading/no all-in) + mindset cultivation (unity of knowledge and action).
Remember: Preserving capital is the top priority; opportunities always favor those who are alive and prepared.