At 3 AM, I stared blankly at the red and green bars of the K-line chart, the butts in the ashtray piled up like a small mountain. This is the night of my third liquidation, my account balance dropped from six digits to three, and that suffocating feeling of my heart being squeezed is more painful than a breakup.
7 years in the crypto market, I have seen too many magical scenes: some chased skyrocketing prices and ended up buying at the peak; some panicked and cut losses when it dropped by 5%, only to turn around and see the prices double; others firmly believed that 'winning rate is king', calculating indicators every day, but in the end, they couldn't escape the fate of losing everything. After the third liquidation, I scolded myself in front of my empty account for a whole morning, finally grasping the truth of this market: there is no absolute fairness, no eternal good luck; those who survive are not necessarily the ones who can make quick money, but rather those who can 'not lose money'.
Today I brought out the 3 iron rules engraved in my bones + 1 simple method. Newbies can follow this to avoid 90% of the detours I took. After all, no one's money comes easily, so don't let the market chop you up like leeks!
1. The stop-loss line is the bottom line; any movement counts as a loss
I still remember the foolish thing I did during my second liquidation: I set a 5% stop-loss in advance, but when it reached that point, I hesitated while watching the K-line, thinking, 'What if it rebounds?' Just that one second of softness cost me an extra half an hour, and my account evaporated 40% of the principal. That night, even instant noodles had no taste.
Later I figured it out: the stop-loss line is not a 'suggestion,' it's a 'lifesaver.' No matter what standard you set (5%, 8% is fine), once the point is reached, your reaction must be faster than your thoughts; don't hesitate or make excuses. The declines in the crypto market never give you a chance to regret. Small losses are 'minor injuries,' but hesitating for a second could turn into a 'fatal injury.' I have verified this with real money; it's a hard lesson!
2. Don't sell recklessly if the trend hasn’t turned
When I first entered the market, I made a 'knee-jerk' mistake: the asset I bought rose by 20%, and I was afraid of it dropping back, so I quickly sold everything. As a result, it doubled right after; I watched others post their profit orders in the community and really wanted to slap myself— that was a market I had endured for half a month, turning a big profit into an 'appetizer.'
Now I only recognize one principle: if I don’t see a clear turning signal, I won't act decisively. What is a clear signal? For example, breaking a key support level or a sudden cliff-like drop in trading volume. At this moment, it's not too late to consider taking profits. The trend in the crypto market is more persistent than 'a scumbag's promises'; as long as it hasn't turned, you can safely endure. 'Taking profits when it's good' sounds reliable, but the actual loss is the true significant profit.
3. Accepting small profits and small losses is the long-term strategy
When I first entered the market, my mind was filled with 'doubling overnight,' chasing hot trends every day, resulting in either missing out or getting trapped. It wasn't until my third liquidation that I woke up: those who always want to make quick money often can't survive a major drop; conversely, those who make small profits daily and occasionally have small losses can stay in the market until the end.
Small profits are not due to 'lack of ability,' they are 'accumulating little by little'; small losses are not due to 'bad luck,' they are 'cost of trial and error.' In the crypto market, 'surviving' is always more important than 'making more money.' If you can endure waves of volatility, you will naturally wait for your big opportunity.
I survived for 3 years relying on a 'simple method'
After trying countless indicators and following numerous 'masters' for guidance, I found that the most useful was actually a simple method: capping the profit-loss ratio at 10:1.
In simple terms: each time a stop-loss is triggered, I only lose 1% of my capital, and I never close a position unless I profit by at least 100%. This means that out of ten trades, nine may result in slight losses. Sometimes I might lose continuously for a month, watching my account slowly shrink, and I really wanted to give up. But after gritting my teeth and enduring, the tenth trade could recover all previous losses and even make a profit.
This method I practiced for 3 years, and after two major losses, it became muscle memory. It's not fancy, not magical, and even a bit counterintuitive, but in the crypto market, the simpler the method, the better it can save your life. Those flashy indicators might deceive you, but the profit-loss ratio won't.
Finally, here are 3 practical words of advice for newbies. If you can't take them in, that's fine; you'll hit the wall sooner or later:
Don't be a 'keyboard analyst' in the community; money that hasn't made it to your pocket is all virtual. Quietly operate, it's better than anything else;
In a bear market, don’t stubbornly hold on; learn to hedge against the market. When the downward trend is clear, make reasonable arrangements, and only buy back when the position is right to minimize losses;
Transfer your profits to a safe account in time, leaving enough for 3 years of living expenses + emergency funds. Even if the market crashes, you can still smile while watching others panic.
