In the first two months, the newcomers in the crypto space that I brought in started with 1500U, and in less than sixty days their accounts soared to 23,000 U, but soon lost half of it.
When we first met, he was blindly following like most newcomers.
When others called for trades, he jumped in, chasing rumors, and after several liquidations, he even used his living expenses to cover losses, falling into a death spiral.
I couldn't bear to watch, so I gave him three iron rules.
First rule: Split money into three parts, keep one part for living.
800U should be divided into 300U for short-term gains of 5% and then exit.
300U should wait for clear signals.
200U should be kept as emergency funds.
At first, he thought it was slow, but when he saw group members liquidating their entire accounts, he understood that surviving is more important than running fast.
Second rule: Do not engage in volatile markets, only catch the main upward trends.
I advised him not to act when the market was directionless.
ADA was sideways for a week, and he was eager to set up a position, but I told him to wait for volume.
The next day, with a volume breakout, he made 18% on a trade and finally understood that patience is a rare trading skill.
Third rule: Stop loss is not cowardice, it's a qualification.
A single trade's stop loss should not exceed 3%, and profit at 8% should trigger a stop loss adjustment.
Once, when trading LTC, he almost canceled his stop loss, so I sent him his past liquidation records.
The next day, LTC plummeted, and he finally realized the joy of sticking to discipline.
However, after his account exceeded 20,000 U, he changed: he joined more signal groups and leveraged everything into MEME coins, trying to catch a hundred-fold coin.
As a result, he lost half overnight, with his account dropping from 23,000 U back to just over 10,000 U.
He asked in the middle of the night whether a heavy position would have made him rich, and I just sent him the thank you note he wrote about risk control.
The truth of the crypto world: the market does not eliminate the poor, it only eliminates those without rules.
From 1500U to 23,000 U, it relies on a steady and disciplined system.
Market trends are an illusion; discipline is the truth. Those who can stay are not the smartest, but those who can endure and follow the rules. @K线判官
