I am 34 years old this year, from Jiangxi, and now live in Xiamen. I own two houses, one for my family and one for myself. I also have two cars, one Maserati and one GLS.
All of this is what I have earned over 8 years with a starting capital of $300,000 from the crypto world, during which the lowest I fell to was $60,000, but I managed to roll it up to tens of millions using the simplest methods, achieving a peak of 400 times returns in just four months, ultimately making $20 million!
Does it sound like a joke? But behind this is the result of my 2880 days of practical experience.
The secret to surviving in contracts: 5 years, 8 iron rules, avoiding frequent trades and counter-trend holdings, with a risk-reward ratio of 2:1 + no more than 10% position is key.
Having crawled through the contract market for 5 years, I have seen too many people turn thousands into hundreds of thousands, only to lose it all to zero within a week.
Contracts can indeed leverage small investments into large returns, but they can also lead to rapid liquidation—90% of losses aren't due to poor skills but rather falling into 'human nature traps' and 'rule loopholes.'
The following 8 iron rules, each carrying lessons from my own and those around me’s bitter experiences, if understood, will help you avoid most liquidation pitfalls.
1. Don’t rush to retaliate after a stop loss! Stop trading after consecutive stop losses.
When I first started with contracts, my most common mistake was 'trying to make back my losses immediately after a stop loss.' Once, I went short on Bitcoin, and after two consecutive stop losses losing $800, I impulsively thought 'the third time will definitely work,' added leverage and opened a large position, resulting in immediate liquidation, losing all my principal. Later, I discovered that 78% of liquidation cases occurred during impulsive trades after consecutive stop losses.
Now, I have set a 'double stop-loss fuse mechanism': if I have two consecutive stop losses, I immediately turn off the trading software and spend half an hour reviewing— did I misinterpret the trend? Or set the stop loss incorrectly? If I can't find the problem, I will stay out of the market for a day. The market never lacks opportunities; once your capital is gone, no matter how many opportunities arise, they have nothing to do with you. Remember: stop-loss is about controlling risk, not 'failure.' Rushing to retaliate will only lead to increasing losses.
2. Don't believe in 'overnight wealth' nonsense! Never exceed a 10% position.
Data statistics from a certain contract platform gave me chills: 92% of users trading at full margin will see their assets drop to zero within three months. Newcomers often treat contracts as 'ATM machines,' thinking 'a full-margin bet will make me rich,' but leverage is a double-edged sword. At 10x leverage, a 5% fluctuation can lead to liquidation.
I have seen the worst case: a brother took $50,000 and went all-in on a meme coin, feeling euphoric when it rose 5%, panicking when it fell 5%, resulting in liquidation in half an hour, leaving him with less than $1,000. Now, I strictly control my position: I never exceed 5%-10% of my principal per trade. Even if I miss 10 market movements, as long as I can avoid 1 liquidation, I've won over most people. Contracts are a marathon, not a sprint; only a steady stream can keep you alive.
3. Counter-trend trading = going against money! Never go head-on in a one-sided market.
Last week, Bitcoin's 4-hour chart plummeted by 15%. Someone in the community shouted 'it's bottomed out,' fully invested to buy long, and ended up getting liquidated three times within three hours, crying that 'the market is unreasonable.' But is the market really unreasonable? In a one-sided market, going against the trend is like a mantis trying to stop a chariot.
A golden rule for judging one-sided markets: Look at the 1-hour K-line; if there are five consecutive bullish (or bearish) K-lines, and the moving averages are diverging (short-term moving averages sharply separating from long-term moving averages), this indicates a strong trend signal. At this point, don’t think about 'buying the dip' or 'shorting the rebound'; the right path is to follow the trend or stay on the sidelines. Last year, Ethereum rose from $1,800 to $4,000; I adhered to the principle of 'not going against the trend,' only going long and never shorting, even during pullbacks, and I made a steady profit of three times.
4. Don’t trade if the risk-reward ratio is less than 2:1! Don’t be the fool who 'earns small and loses big.'
The deadliest pitfall for countless retail investors: they hurriedly take profits after earning $1,000, but endure pain to cut losses after losing $2,000, resulting in 'earning not enough to cover losses' in the long run. The scientific trading logic is: before opening a position, you must set at least a 2:1 risk-reward ratio— for example, if your stop loss is set at $500, then your take profit must be set at least at $1,000. If this standard isn't met, don’t touch it.
I set a rule for myself: open the market software and first calculate 'how much to stop loss, how much to take profit.' If I find the risk-reward ratio is 1:1.5? Just cross it out without hesitation. Last year, when trading SOL contracts, I originally wanted to go long at $100, but after calculating, I found the stop loss was $95 (loss of $500) and the take profit was $105 (profit of $500), with a risk-reward ratio of 1:1, I decisively gave up. Later, when it retraced to $90, I set the stop loss at $85 (loss of $500) and take profit at $100 (profit of $1500), with a risk-reward ratio of 3:1, I entered the market, steadily earning $1500. Remember: trading isn't about 'making the right calls often,' but rather 'earning more when right and losing less when wrong.'
5. There are signals for rebounds after excessive declines: If a coin has dropped 50% from a high and has continued to fall for 8 days, it has entered a state of excessive decline; a rebound is imminent, and it’s a good time to consider buying.
Data from a leading exchange is heart-wrenching: average users trade 6.3 times daily, while the top 10% of profitable traders only take action 2.8 times a week. When I first started trading contracts, I also loved to 'show my presence,' opening 10 positions a day, spending a lot on fees, but my principal kept shrinking. I later understood that frequent trading not only costs money but also depletes your mindset.
The market fluctuates every day, but 90% of these fluctuations are 'ineffective noise.' Experts wait for 'high certainty opportunities'—such as trend breakthroughs or key support and resistance level resonances. I now only check the market twice a day (half an hour after opening and half an hour before closing); during other times, I do what I need to do. Once, Bitcoin was sideways for 10 days, and I didn’t open a single position, watching others incur losses during the sideways market. I entered only after the breakout and earned more in a single trade than others did in 10 trades. Remember: missing an opportunity isn’t a loss; blindly entering the market is what’s truly scary.
6. Can't earn money outside of your understanding! Only invest in currencies you have thoroughly researched.
When Dogecoin surged 300% due to a tweet from Musk, some in the group followed suit and bought at the peak, only to get liquidated during the subsequent crash. Their losses weren't due to luck but ignorance—how could they expect to make money without understanding Dogecoin's market value or chip distribution?
The core principle of contract trading: only trade coins you have thoroughly researched. I currently only trade three coins: Bitcoin, Ethereum, SOL, each of which I have researched thoroughly regarding their fluctuation patterns, main habits, and key points. Even if an unfamiliar coin rises sharply, I won’t touch it because I know: money earned by luck in the short term will eventually be lost through skill. Sticking to your circle of competence will help you avoid the fatal trap of 'trading by gut feeling.'
7. Holding positions is walking into an abyss! Acknowledge your mistakes; as long as you're alive, there's a chance.
The harsh truth of the leverage market: holding positions = betting your capital on luck. Under 10x leverage, price fluctuations are amplified by 10 times, and a 5% loss can morph into liquidation while holding positions. Community statistics show that users who consecutively hold positions 3 times face a liquidation probability as high as 91%.
I have seen the most stubborn brother: he went long on Ethereum, setting a stop loss at $3,000. When it fell to $2,900, he thought it would 'rebound,' withdrew the stop loss, and held the position, only to see it drop to $2,500 and get liquidated, losing $200,000. Now, I always set a stop loss when opening positions, cutting losses promptly at the set point, never 'waiting a bit longer.' Acknowledge mistakes; a 5% stop loss is always better than a 100% liquidation— as long as you’re alive, you can earn back on the next trade.
8. Don’t get complacent after profits! Withdraw half your principal, and treat the rest as 'play money.'
Human nature's weaknesses are most easily exposed when making profits: earning money leads to reckless trading and leveraging, resulting in profit loss and even losses. I have experienced this before: I once made $50,000 and felt 'like a god,' fully invested in a meme coin contract, and lost all my profits within three days, even losing $20,000 of my principal.
Now, I have a strict rule: after every profit, I immediately withdraw 50% of the principal. For example, if I earn $10,000, I first transfer $5,000 to my bank card, leaving the remaining $5,000 as 'play money,' and I won’t mind losing it. This way, I can lock in profits while maintaining clarity— you’ll find that trading with 'profits' stabilizes your mindset, preventing chaotic operations due to 'fear of losing principal.'
Lastly, I want to say:
Contracts are not gambling; they are a 'controllable risk probability game.' The core of these 8 iron rules is simple: use rules to manage human weaknesses. Stop-loss, position control, following trends, waiting for opportunities, not holding positions, maintaining cognition, withdrawing profits...
By doing these things, you have already avoided 90% of loss traps.
Remember: the winners in the contract market are not the ones who predict the market most accurately but those who control risk the best. Minimizing losses is profit; being alive allows you to wait for real opportunities. May you carry these 8 iron rules and walk steadily and profitably in the contract market.
My consistent profit in investments, aside from the skills mentioned above, also strictly adheres to the following fifteen principles:
1. A sharp drop proves its worth: If the market drops sharply and the coins you hold only fall slightly, it indicates that the market maker is protecting it and doesn't want it to drop further. Such coins can be held confidently, and profitability is guaranteed later.
2. Simple tricks for newcomers: If you’re new and don’t know how to buy and sell coins, the simplest way is to look at the 5-day moving average for short-term trading— if the coin price is above the 5-day line, hold it; if it breaks below, sell quickly. For medium-term trading, look at the 20-day moving average— if it breaks the 20-day line, get out. The method that suits you best is the best, and the difficulty in trading lies in whether you can stick to it; don’t overthink it; persist with one method, and you’ll surpass most people.
3. Skillfully entering a major upward trend: If a coin price is entering a major upward trend without significant volume increase, then buy decisively. When the price is rising with volume, hold onto the coins; if it declines with volume but the trend hasn’t broken, continue to hold; if it falls with volume and breaks the trend, quickly reduce your position without hesitation.
4. Be decisive with short-term stop losses: If you buy coins and there’s no significant movement for three days, and if it falls by 5%, don’t hesitate; stop loss unconditionally, don’t stubbornly hold on.
5. A rebound after a sharp drop has signals: If a coin has dropped 50% from a high and has continued to fall for 8 days, it has entered a state of excessive decline; a rebound is imminent, and it’s a good time to consider buying.
6. Trade the leading coins: In crypto trading, you must trade the leading coins. They surge the most when rising and hold up the best when falling. Don’t be afraid to buy; trading coins often goes against common thinking; the strong will get stronger. When trading leading coins, buy high and sell even higher!
7. Follow the trend, don't be greedy for lows: Buying coins isn't about getting the lowest price; it’s about suitability. Avoid junk coins; following the trend is the way to go.
8. Review and find methods: Don't get complacent after making money; you need to review thoroughly, consider whether it was just luck or genuine skill. Finding a stable and suitable trading system for yourself is the key to continuous profit.
9. Holding cash is also a skill: Don't trade recklessly. If you're not absolutely sure you can make money, don't force a position. Those who can buy are just novices; those who can sell are skilled, but those who can hold cash are the real masters in the investment world. When trading, first think about how to preserve your capital, not just about making money.
10. Fixed systems for stable operations: In the investment market, don’t always think about adapting to changes; that’s often wrong. Use your fixed trading system to respond to changes. Sometimes, not acting rashly is the best defense. Many times, when you can't bear to sell or can't help but buy, it's precisely when you make the most mistakes.
11. Love without forgetting your responsibilities: Those who can persist in trading for more than four years genuinely love it. But don’t get too absorbed; family is our most important responsibility, so don't forget.
12. Take responsibility for yourself: We can’t control the market environment, but we must be responsible for ourselves. If you fail in your investments, don't blame others; regardless of the situation, you must bear the consequences of your decisions. Only by taking responsibility can you face mistakes and ensure you don’t repeat them next time.
13. Listen less to hearsay: There's no absolute right or wrong in market opinions. Much of what you see or hear is either what others want you to know or what you want to hear. The day you lose interest in the media or the so-called experts’ methods, congratulations, you’re not far from entry and success, as you may have developed your own judgment and persistence.
14. Trading is about cultivating a mindset: you think you are trading the market, but in fact, you are refining yourself. Behind every success is silent perseverance and endurance. To achieve great things, you must endure hardships. Time is the most precious asset; endurance is more important than intelligence; talent is not important; mindset is key!
I hope my experiences and skills can help you navigate the investment journey more steadily, achieving gradual wealth growth. Let's work hard together!
How to flip small capital in the crypto world?
In the crypto world, wanting to flip small capital is indeed a tough road, but this path is paved with blood and tears. Last year's crash saw Cool Xi make $10,000 short into $10 million, but no one tells you he went through liquidation over thirty times. Even earlier, there was a master named Tony who turned $50,000 into $20 million in a year. Elders in the circle still mention his 'three iron rules of rolling positions.'
Rolling positions isn't gambling; it's a skill of dancing on the edge of a blade.
I have seen mine owners test out rolling positions: taking $300 split into 30 parts, each time investing only $10 at 100x leverage. If the direction is correct, a 1% price fluctuation can double the investment.
As soon as I earn $20, I immediately withdraw $10 in profit, leaving $10 to continue rolling. After two months of this slow accumulation, I managed to grow $300 into $20,000. But the key was in the final step—when I made $50,000, I decisively stopped and converted to spot trading. Later, that coin went to zero, and all the brothers in the rolling position group got liquidated, but I preserved my profits.
The three things that scare me most about rolling positions.
1. Impulsive trading: Tony set a rule years ago to only test three directions daily. If he got it wrong three times, he would shut down his computer and sleep. Once, when Bitcoin was sideways for seven days, he truly just held cash and watched the market for seven days.
2. Greed without a stop: During last year's March 12 crash, a brother rolled from $5,000 to $800,000 without taking profits, thinking he would reach a million. However, he got liquidated during a spike at dawn and posted a screenshot of his registration as a delivery driver in the group in the morning.
3. Stubbornly holding onto the wrong direction: Cool Xi became successful because he corrected his mistakes quickly. Once, after going long and getting liquidated twenty times, he reversed to short on the twenty-first attempt and flipped the situation, saying 'twenty liquidations prove the bulls are dead.'
I am Sister Yun, sincerely wishing for you to gain plenty as a seasoned player in the crypto world. If you're keen to delve deep into the crypto realm but don't know where to start, longing for a quick entry, you can follow: Awen.
In this world of uncertainty and possibilities in crypto, every choice can determine your future wealth trajectory. I understand the difficulties and challenges involved, so I always adhere to my bottom line, cautiously and decisively exploring this enticing yet promising field. If you also share a yearning and pursuit for the crypto world, then let us move forward together.
