Last week, when I received the good news from my student Xiaolin, I stared at the account screenshot he sent for a while — 9 days ago, he was anxiously holding onto 1200U and asking me 'will I ever earn back the money I lost?', and now the numbers on the screen have jumped to 5535U.

Behind this surprise lies the simplest logic for small funds to escape losses in the cryptocurrency world: compared to complex theories, reliable basic operations are the key to turning things around.

Xiaolin is an ordinary office worker who previously stumbled into various pitfalls while following the trend of trading cryptocurrencies: he chased after air coins, blindly entered the market just because the coin's name sounded fancy, resulting in losing more than half of his capital; he had heavy leveraged positions, hoping to 'turn the tables' with a single trade to cover losses.

Instead, he was severely taught a lesson by the market, losing confidence within a few months. When he came to me, he repeatedly said, 'I dare not operate recklessly anymore', his eyes filled with fear of losses and confusion about profits.

I didn't explain the profound K-line theory to him, nor did I mention complex indicator analysis; I just had him practice three basic operations, and unexpectedly, in just 9 days, he experienced a transformation.

First strategy: 'Value Staking Technique', do not chase the hot, but pursue the 'undervalued'.

I advised Xiaolin to give up chasing those hot coins that are hyped by the community, and instead focus on high-quality coins that have been 'crushed' by short-term negative news — just like waiting for a bus on a rainy day, while others hurry away to avoid the rain.

He instead took the opportunity to observe: which coins have not deteriorated in fundamentals (such as project progress being normal, the team not having run away, and the circulation being stable), but have temporarily been misled by market panic, causing prices to fall below value.

During operations, he would first use 5% of his position to 'stake out' — for example, a certain mainstream coin recently dropped 10% due to short-term news, and the community was full of voices saying 'it’s about to collapse', Xiaolin followed the method and entered the market with 60U (5% of 1200U) to test the waters. Once the market stabilized and began to rise, he then added 30% of his position (360U) to lock in profits.

After this operation, he earned 25% in just three days and remarked to me, 'For the first time trading cryptocurrencies, I didn't have to stay up all night watching the market, I slept particularly well at night, and no longer had to anxiously stare at the screen like before.'

Second strategy: 'Capital Protection Net', diversify to block 'all-in loopholes'.

Addressing Xiaolin's previous issues of 'all-in at a loss, adding positions at a profit', I had him divide 1200U into three parts, creating a 'capital protection net': 400U follows the long-term trend to create a 'guaranteed profit position', only investing in highly consensus mainstream coins like Bitcoin and Ethereum, and not operating frequently.

Profit from long-term trends; use 400U for short-term 'change warehouse' to try short-term opportunities, even if it results in a loss, it does not affect the overall situation; the remaining 400U serves as an 'emergency cushion', which will not be touched no matter how tempting the market is, specifically to deal with emergencies.

Initially, Xiaolin was always worried about 'earning less with diversified positions', thinking 'if the money is spread out, even if a single stock is profitable, it won't be much'. But after 9 days of trading, he found that although the short-term 'change warehouse' had two small losses, the 'guaranteed profit position' remained steadily profitable, and with the 'emergency cushion' unused, his overall account did not experience significant fluctuations.

What was even more unexpected was that the rolling profits combined exceeded what he earned during previous full-position operations — after all, in the past, full positions either had big gains or big losses, whereas after diversification, profits are 'accumulated bit by bit', and losses are 'controllable and bearable'.

Third strategy: 'Ironclad Entry and Exit Method', use discipline to control 'impulsive hands'.

I emphasized to Xiaolin: Losing money in the cryptocurrency world is often not about not understanding the market, but about being unable to control oneself. Therefore, it is essential to establish 'ironclad rules': before each trade, write down the stop-loss and take-profit points in a notebook — with a strict stop-loss controlled at 3%.

As long as losses reach this amount, regardless of how unwilling, exit immediately; when profits reach 15%, take half the funds off the table, and set a trailing stop for the remaining part (for example, if profits retract 5%, clear the position), never be greedy for 'higher points'.

In those 9 days, Xiaolin executed 18 trades in total, 16 were profitable, and 2 had small losses, with overall profits far exceeding the previous reckless trading phase.

He said, 'I used to always think 'let's wait a bit longer, maybe I can earn a bit more', but it ended up turning profits into losses; now I follow the discipline, selling at the scheduled time. Although I didn't get the 'last bite of meat', the money in my pocket is real and gives me great peace of mind.'

In the cryptocurrency world, there are many ordinary investors like Xiaolin — they do not lack capital but lack reliable methods and execution discipline.

Trading cryptocurrencies is like learning to drive; no one is born with the ability, it requires reliable guidance and mastering correct operational logic. I have compiled the three strategies used by Xiaolin into a practical manual with case studies, from 'how to filter quality undervalued coins' to 'adjusting position ratios', and 'details of taking profit and cutting losses', with specific guidance at every step.

If you, like Xiaolin in the past, are holding onto your capital and afraid to move, or if losses have eroded your confidence and you want to escape losses and make profits through solid operations, you might want to pay attention to @趋势猎手老金 . But I want to remind you: I only guide those who are serious about learning and doing — no matter how good the method is, without action, it is just empty talk; no matter how strict the discipline is, without execution, it equals zero. There is no myth of 'lying down to earn' in the cryptocurrency world, only solid 'doing it right', step by step, can you walk steadily and earn long-term.