After struggling in the cryptocurrency world for so many years, I have finally understood one painful lesson – don’t let 'reckless trading' and 'not cutting losses' deplete your capital.

Are you always caught in the same cycle?

As soon as I see the market jump, I think: if I don’t chase now, I’ll lose out!

But after chasing in, I encounter a pullback, thinking 'it should recover soon', and end up getting deeper into a loss.

Then I see the market drop, panic sets in, and I end up selling at the lowest point, only to turn around and chase the next hot trend.

As a result… my account balance keeps getting smaller.

In fact, the fundamental problem with losing money isn’t misjudging direction, but rather that we ourselves have made two fatal mistakes: frequent trading and chasing highs and cutting losses.

Not cutting losses, holding onto the false hope of 'luck turning around'.

Frequent trading might seem like seizing opportunities, but in reality, you’re just working for the transaction fees.

Every time you rush to place an order, you’re increasing your risk.

Not setting stop losses is like running naked with your capital; once there’s a pullback, it leads to a crash, and previous profits vanish instantly.

Therefore, true trading wisdom is – survive first, then talk about making money.

Cutting losses is not admitting defeat, but rather adding a layer of 'insurance' to your trades.

It’s like wearing a seatbelt while driving; it seems unnecessary, but it can save your life at a critical moment.

Before placing each order, think clearly about 'how much loss can I tolerate at most'; when you reach the stop-loss point, decisively exit to preserve your capital for a comeback.

Additionally, refuse to trade frequently.

The market is never short of opportunities, but opportunities do not come every day.

Markets have cycles; buy during phases suitable for positioning, wait during phases suitable for observation, and decisively exit when it's time to leave.

Frequent switching of strategies will only cause you to get lost in the market chaos; it’s much more effective to calm down and wait for the real opportunities than to operate blindly.

Remember: the essence of trading is risk management, not chasing quick profits.

Reducing impulsive chasing means reducing the risk of being trapped.

Increasing the number of stop losses means increasing the confidence to preserve your capital.

Using a phased approach to plan your trades can help avoid falling into the vicious cycle of 'cutting losses – chasing highs – cutting losses again'.

Preserve your capital to survive longer and wait for the moment of profit that truly belongs to you.