"Loss is not fate; it is just that you are too slow." This sentence changed my entire trading mindset. Two years ago, I consecutively blew up my account five times in the contract market, with my account dropping from $275,000 to only $2,400, and I was nearly broken. At the moment I was about to exit the market, an old friend said to me: "What you lack is not luck, but the speed of information and reaction."
This sentence made me reevaluate my trading approach. Since then, I restructured my strategy based on my friend's ideas for a year, ultimately growing from $2,400 to $196,000, relying entirely on a three-step strategy.
Step 1: Lock positions to stop losses and ensure the safety of the principal.
At the beginning, I set a strict rule for myself — only use one-tenth of my principal for building positions, while the rest is a reserve for adjustments. Why do this? Because even if I make a wrong trade, the loss won't be too large, and the account can still survive. The longer the account survives, the more chances there are to turn it around. The safety of funds is the foundation of success; only by protecting the principal can there be opportunities for subsequent counterattacks.
Step 2: Seize the opportunity and make a quick move.
While steadily making a profit, I pay attention to three information points every day:
1. Large transfer records from major exchanges.
2. The premium rate of stablecoins.
3. Twitter data for specific projects.
Once, I noticed a 1% premium on stablecoins in the Asian market, so I quickly bought low and sold high, easily making a profit. Although this tactic doesn't earn much each time, it is highly stable and accumulates into considerable results over time.
Through this method, I gradually accumulated stable returns. These seemingly simple strategies actually yield small profits through information asymmetry; as long as I continue to operate, the returns will gradually accumulate.
Step 3: Hunt for opportunities and capture emerging markets.
When my account balance broke $50,000, I started focusing on emerging markets where liquidity had just expanded. True opportunities often lie in lesser-known new coins. I monitor the trading depth and market trends of these coins in advance; when liquidity increases, the profit margins upon selling will significantly increase. For example, last month, I made a profit of $92,000 using this strategy.
Many people think that turning around is luck, but it is not. The real reason for a turnaround is slow execution, chaotic rhythm, and dull information.
If you can effectively protect your principal, lay out information lines, and capture the market rhythm in advance, you will be able to seize the opportunity when it comes and reverse your losses.
Loss is not scary; what is scary is that you do not react in time, or when the market tells you about an opportunity, you are still making blind trades.
