Don't let 'stubbornly holding on' turn you into a lone commander! From 900,000 to zero in my account, the most bitter memory of my 10 years in the crypto world — enduring 12 hours of holding, watching my unrealized gains melt away like ice cream, almost getting forcibly liquidated!
One, three major truths understood only after crying over losses: I was just operating blindly before!
Leverage ≠ life-threatening: Position size is the life saver
Don't panic and cover your wallet just because leverage is mentioned, it's like spicy strips with beer, satisfying in moderation, but too much and it loses its thrill! 100x leverage with a 1% position is less risky than buying bubble tea with all your capital. My student used 20x leverage to trade ETH, only investing 2% of his principal as 'pocket money', resulting in four years without getting liquidated, earning enough to stock three freezers with ice cream, with annualized returns far outpacing spot trading! The core formula: Real risk = Leverage × Position ratio — had I understood this earlier, my 800,000 loss could have saved me enough to buy a small electric scooter!
Stop-loss ≠ cutting losses: Install a leakage protector for your account
During the crash on March 12, 2024, 78% of those who got liquidated were 'stubbornly hanging on': unwilling to cut losses at 5%, they eventually lost 20% and were forcibly 'swept out' by the system. That's how I lost my 800,000, clinging to the fantasy of 'it will rebound' and enduring a floating loss of 3% to 20%, watching my account balance plummet. Now I've learned to install a 'fuse' for my account: if a single loss exceeds 2% of the principal, it automatically cuts off power, this trick helped me avoid four 'black swan attacks' in 2024, preserving 3 million in capital enough for down payments on two houses!
Rolling positions ≠ going all in: Earning money should be like saving for bubble tea
In the early years, I used to go all in whenever I made money, and as a result, profits came quickly but left even faster, like a strong wind. Later, I switched to the 'stair-step eating method': start with 10% for a trial, if it tastes good, add another 10% of the profit as a bonus. With a capital of 50,000, I first invested 5,000 (10x leverage) as an appetizer, and for every 10% profit, I added 500 as a 'refill'. When BTC rose from 75,000 to 82,500 in 2024, I expanded my position by 10%, my safety net thickened by 30%, and I earned more than those who went all in, the key is I slept well at night!
Two, institutional-level risk control model: From 'passively getting beaten' to 'actively controlling the field'
Dynamic position formula: Calculate your math problems before placing orders!
Before opening a position, recite the mantra: Total position size ≤ (Principal × 2%) ÷ (Stop-loss range × Leverage). For example, with 50,000 principal, 2% stop-loss and 10x leverage, the maximum position size is 50,000×0.02÷(0.02×10)=5,000. Relying on this 'life-saving formula', I turned my 50,000 into 1 million during the 2024 halving market, with a return rate exceeding 1900%, even Old Wang next door wants to become my brother!
Three, profit-taking method: Keep the cooked duck from flying away
Take profits at 20% first, pocket 1/3, that's real money; take another 1/3 at 50%, cutting the cost in half; for the remainder, attach a 'moving dog leash'—run when it breaks below the 5-day moving average. Last year, I used this trick to preserve 80% of my profits on a certain coin, while those who stubbornly held ended up with nothing, now they all avoid me (maybe secretly learning).
Still the same saying:
Trading cryptocurrencies alone is like walking in the dark at night, it's easy to fall into a pit! Find the right guide, and you can turn from being 'cut like chives' to becoming a 'scythe player'! I have the essentials here waiting for you on the road to recover losses and grow your investment! Follow @钱包守护者 for more 'tips to avoid pitfalls' so you can pay less tuition and have a wallet as full as a balloon~