When I first entered the crypto space, I also faced liquidation every day. Even when I predicted the direction correctly, I lost; after cutting losses, the market would take off, making me increasingly anxious with each trade.
However, after paying tuition repeatedly, I gradually became stable. Now, I rarely face liquidation in contract trading and no longer act impulsively.
Today, I’m sharing five insights I’ve learned for friends still feeling anxious. Perhaps these words can help you reduce losses and stabilize your account sooner.
First rule: Averaging down after being trapped is not for making money, but for cutting losses.
Don't fantasize about a huge rebound to recover losses after being trapped.
The only purpose of averaging down is to lower costs and reduce losses, not to turn the situation around.
Many people start to 'add positions to gamble' after being trapped, resulting in deeper losses until they are liquidated.
The correct approach is:
Small position trial trades
Set stop-loss points
Go with the trend; accept losses, don’t stubbornly hold on.
Second rule: Calm markets often signal big fluctuations ahead
Don't think there’s no market when it's sideways.
Many sharp rises and falls occur after triangular consolidations and low-volume sideways movements.
After prolonged sideways movement, avoid impulsiveness and be more cautious.
Suggestion:
Be cautious of false signals when seeing high-level fluctuations.
If a breakout fails, consider shorting.
If a breakout succeeds, don’t chase high prices; wait for a pullback to confirm before entering.
Third rule: The rhythm of buying and selling determines success or failure; try to act against the prevailing emotions.
There’s a saying in the crypto community: Buy in panic, sell in greed.
But very few truly manage to embody these eight words.
Most people only get excited when prices rise and panic when they fall, while true experts do the opposite.
Buy in panic, sell in greed.
Enter when prices drop, take profits when they rise.
During sideways consolidations, it’s better to act less and wait for signals before getting in.
Fourth rule: Never go all in; position size determines life and death.
Many people fall victim to the combination of ‘all in + gambling their life away.’
The crypto market is not about who has the biggest courage, but who can withstand volatility. Those who survive are not the all-in gamblers, but those who understand position control.
Remember these three points:
When the trend is unclear, only use small positions to test.
Only gradually increase positions after the trend is clear.
Always keep some bullets; don’t fire all at once.
Fifth rule: Trading cryptocurrencies is all about mindset.
You may have decent skills, but as long as your emotions are chaotic, you are destined to lose money.
True profit-makers often buy quietly when no one dares to enter and sell discreetly when the market is at its peak.
In summary, it boils down to one sentence:
Don’t be greedy, don’t be afraid, don’t be impatient.
Have a plan, be able to wait, dare to cut losses
Maintain a stable mindset to secure profits.
Final summary
Contracts are not a tool for overnight riches, but a magnifying glass that amplifies your mistakes.
Those who can truly survive are not relying on luck, but on knowledge, discipline, and mindset.
If you are still frequently facing liquidation and experiencing emotional ups and downs, I hope these words can help you. Even avoiding one loss is worth it.