One, The truth that Munger and Duan Yongping didn’t finish saying: The less money, the heavier the gambling nature!

Munger said: 'Chinese people are very foolish in stock trading, they love to gamble too much.' Duan Yongping was more direct: 'Stocks are not gambling, retail investors say they gamble because they have no money? No wonder you have no money!'

I lost 1.2 million over 10 years before I figured it out——

Billions in funds: Globally allocate Moutai, Apple, and never touch 'concept stocks'! Tens of millions in funds: 70% high dividend + 30% growth stocks, annualized 15% stable as an old dog! Millions in funds: Pick 'cigarette butt stocks', gamble on restructures, fantasizing about 'a bicycle turning into a motorcycle'! 50,000 capital: Chase chips, AI, robots, limit up yesterday, limit down today, living like 'leeks'!

Fan Xiao Li's real test:


'I used to want to 'turn over in one go', now I use the 'position sizing strategy', splitting 50,000 capital into 5 parts, only moving 1 part at a time! Increase position after a 10% drop in BTC, sell 1/3 after a 20% rise, earned 600,000 in 3 months!'

Two, The 'anti-gambling' secrets of the crypto world: Big funds rely on stability, small funds rely on waiting!

1. Basis + Options: The market's 'automatic correction machine'

The basis must converge: Don't bet on 'perpetual contracts', the difference between spot and contract prices will eventually go to zero! Options will expire: Don't buy 'deep out of the money', time is your enemy!

2. Implied Volatility: The 'price tag' of liquidity

When liquidity is tight: Implied volatility skyrockets, don't be the 'bag holder'! When liquidity is loose: Implied volatility drops, that's the 'money picking moment'!

3. The 'anti-mathematical law' of the crypto world

The law of large numbers fails: Don't believe in 'probability evenly distributed', a big player can crash the market with one order! The central limit theorem fails: Price movements are not normal, black swans are the norm!

Three, Small Capital Comeback: Engrave the word 'wait' into DNA!

I made Xiao Li stick to these 3 rules, turning losses into profits in 3 months:

Position sizing is like building a fortress: Split 50,000 capital into 5 parts, only move 10% of the first part! Stop-loss set at 2%: Cut the order immediately at a 2% loss, never hold the order! Profit snowballing: Use profits to increase position after making 10%, never leverage the principal!

Fan Xiao Li used the 'position sizing strategy' to grow from 50,000 to 3 million,

'Teacher, my 50,000 capital is almost gone...'
Last year when fan Xiao Li found me, his account had only 12,000 USDT left in the screenshot. He chased highs and cut lows every day, betting on 'hundred times coins', and the harder he tried, the more money he lost. I had him do two things: quit the 'gambling nature' and stick to the 'position sizing strategy'— this year his account rolled to 3 million, now he can change cars just with the interest!


This year when BTC touched the trend line, he used the 'position sizing strategy', starting with 10,000 USDT to test the waters, adding the second part after a 10% drop, selling 1/3 after a 20% rise, ultimately turning 50,000 capital into 600,000 profit!

Four, Let’s be honest:

'There's no Holy Grail in the crypto world, but there is a key to 'not losing money!' Xiao Li now spends only 10 minutes a day watching the market, and his account automatically rolls profits. He said: 'I used to think I needed to learn 100 techniques, but now I understand— mastering position sizing and stop-losses to the extreme, the market is your ATM!'

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Remember: In the crypto world, not losing money is making money, slow is fast!