Six Rules for Survival in the Crypto World: Stay Away from Liquidation, Move Towards Stability
1. Ironclad Profit and Loss Control:
Take Profit: Restrain greed, set preset goals. Prices won't rise forever; taking some profit is a success.
Stop Loss: Execute decisively! Abandon sunk costs; exit as soon as a position breaks. "Cutting off an arm to survive" protects your capital; hoping for a reversal can be costly.
Core: There's endless money to be made in crypto, but you can lose all your capital!
2. Refuse Frequent Trading:
Don’t fantasize about “double profits”; being able to profit from one side is enough.
Beware of transaction fees: Especially with 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 don’t understand the market, don’t open a position! “Missing out” is far better than “losing money.”
Trading is a probability game; entering when direction is unclear is like “opening a blind box.” Be patient and wait for high-certainty opportunities. (Hedging can reduce directional risk but is not a cure-all.)
4. Accumulate Gradually:
Abandon the fantasy of getting rich quickly. Use light positions (such as using 100 capital to open 10x) for stable accumulation (e.g., earning 10-20 per order).
Pursue a win rate (60-70%): A few stable daily trades far exceed heavy gambling. Little by little, compound interest can be considerable.
5. Never Go All In:
Absolute taboo! Black swan events (like sudden bad news) can instantly destroy heavily leveraged accounts.
Test the waters with light positions; stability is key. There are plenty of opportunities in the crypto world (still available for the next 10-20 years); staying alive allows you to seize opportunities. Don’t be deceived by short-term illusions.
6. Strive for Unity of Knowledge and Action:
The most challenging but crucial! Overcome human weaknesses (greed, fear, luck).
Eliminate unplanned, arbitrary trades. Success requires:
A mindset that far surpasses the average
The courage to act decisively when the time is right
Discipline to exit decisively at stop-loss
The determination to cut off an arm to survive
Core Summary:
The key to stable profits is risk control (stop-loss/light positions/no positions) + discipline execution (taking profit/not frequent/not going all in) + mindset cultivation (unity of knowledge and action).
Remember: Protecting your capital is the top priority; opportunities are always reserved for those who are alive and prepared.
