This year, I encountered a brother who essentially played out the 'typical operations' of losing in the crypto world—his 100,000 U capital dwindled to just 6000U in less than half a year.
That day he sent a voice message on WeChat, his voice full of exhaustion: 'If I keep losing, I will completely say goodbye to this market.'
After reviewing his trading records, I found that his trading patterns hit almost all the pitfalls that could deplete his funds, resembling 90% of those who stumble in the crypto world.
He could open dozens of orders in a day, sometimes entering and exiting within minutes, and the accumulated fees were more than the occasional profits, yet he always thought 'the more orders I place, the more chance to turn things around';
I saw someone in the group shouting 'the new coin will skyrocket,' without even understanding what the project is about, and just threw most of their position in, resulting in the coin price being halved the next day, leaving their account with almost nothing; in order to 'keep a close eye on the market,'
He stayed up every night watching K-line charts, the more he lost, the more anxious he became; the more anxious he was, the more he wanted to place orders to make up for it, ultimately doubting that he was not trading coins but had become a 'cash machine' for the market.
When he found me, his eyes were vacant, repeatedly asking: 'I only have 6000U left, is there still hope?' I pointed at his screen full of losing records and said: 'To turn things around, you must change from a 'reckless shooter' to a 'precise sniper'—the bullets are few, and each shot must be used at the critical moment.'
Then I set three ironclad rules for him, forcing him to strictly implement them; even if he wanted to give up midway, he had to follow the rules:
Rule Two: Ladder rolling method: increase position when winning, withdraw when losing.
I had him uninstall the short-term trading software from his phone and stop staring at the 1-minute and 5-minute charts; focus on the trend signals for 1 hour and above.
I told him: 'When the market is unclear, it’s better to stay in cash and wait; missing ten uncertain opportunities is better than making one wrong trade.'
I also set a 'daily order limit' for him: a maximum of 3 orders; even if a more enticing market appears later, he must not increase his activity. At the beginning, he often felt the urge to trade; I had him go for a run or do housework when he felt the urge, and if he really couldn’t resist, I had him lock his phone and let his family set a password.
Unexpectedly, after two weeks of morning runs, he said his mindset had stabilized a lot, and he would no longer be anxious about placing orders at the sight of K-line fluctuations.
Rule One: Only seize clear opportunities; do not become a prisoner of K-lines.
Considering that he didn't have much capital, I had him strictly control his first order position within 10%, starting with 500U to test the waters. We also agreed:
As long as this order profits 20%, he should take half of the profits first, locking in some gains, and set a trailing stop for the remaining position; even if the market pulls back later, he can still preserve part of the earnings; if it loses 5%, he should close the position immediately, absolutely not averaging down or fantasizing that 'it will rebound back to break-even.'
I told him: 'Setting a stop-loss is like the oxygen mask for survival; you previously suffered huge losses because you were always hoping that 'the next bullish candle will help you break even,' and ended up deeper in the hole. Now you must engrave the stop-loss into your mind; accept a 5% loss, at least you can keep your principal for the next opportunity.'
Rule Three: Build a defensive line with discipline; keep a master account for trading.
I had him prepare a trading log, where before each order, he must write down clearly the 'basis for entering the market, how much position he used, and the expected take-profit and stop-loss points';
After trading ends, regardless of profit or loss, record 'what was the reason for the profit, where did the loss go wrong'—refine the experience from profitable trades and replicate it in similar market conditions; mark the losses with a red pen, repeatedly reviewing where you went wrong.
I also added a 'circuit breaker mechanism': if he had two consecutive stop-losses, he must stop trading for a day, absolutely not continuing to operate with emotions. This later cured his 'holding onto losing positions' problem; when faced with market conditions that did not comply with the rules, even if he was itching to trade, he would remember the previous lesson and refrain from acting.
After sticking to this for half a year, his account gradually recovered from 6000U to over 30,000U. One time while having dinner, he sighed: 'These principles are actually not difficult; why did no one tell me earlier?'
I smiled and said: 'It's not that no one has said it; it's just that most people would rather blow up their accounts than admit they are 'gambling,' always treating discipline as a restraint, forgetting that it is actually the 'amulet' in the crypto world.'
In fact, in the crypto world, real turnarounds never come from a 'hundredfold market'; the first step is to learn to 'survive'—control risks with rules and keep hands disciplined; even if the principal is only a few thousand U, you can slowly recover.
If you are holding losing positions and don’t know how to operate, and need someone to help you sort out methods and keep an eye on discipline, just follow @趋势猎手老金 Jin. I only bring partners with strong execution; after all, no matter how good a method is, if it’s not executed, it’s just empty talk. As long as you are willing to follow the rules, even if you are currently in a low point, you can gradually rise again.
