Who understands family! Last winter at the barbecue stall, my childhood friend Chen Hao held a skewer, eyes red, showing me a screenshot of his trading account. That number was so empty it could make me want to scrape together 450,000 in real cash for a three-bedroom apartment on the spot, just like that it went down the drain in the crypto market. At that time, I was patting his back, encouraging him to drink, while secretly thinking: this guy is probably saying goodbye to the crypto market for good. As spring approached, when he showed me a screenshot of his account, I almost spilled my coffee on his newly bought sweatshirt: starting with 3,000U, he actually rolled out a profit of 500,000! As an analyst who has been in the crypto market for eight years, I have seen too many wealth myths and countless liquidation tragedies, but Chen Hao's turnaround made me truly realize: in the crypto market, technology is just the threshold, being able to control your own discipline is the real wealth code.
Let’s start by reviewing Chen Hao's 'history of failures', which is practically a classic textbook case for novice retail investors. In the past, when he traded crypto assets, he always believed in 'seeking fortune in danger' and frequently went all-in, thinking he could accurately time the market's highs and lows. But the market slapped him back hard, and he lost 450,000 in principal. He smashed his phone, deleted apps, and locked himself in his room for a month. When he finally came out and said to me, 'I might really not be cut out for this,' his tone was as wilted as a frostbitten eggplant. I told him then, 'This isn't about lack of talent; it’s about lack of common sense. The crypto market has never been a playground for gamblers; it’s a hunting ground for snipers. Relying solely on brute force will eventually lead to failure.'
Sure enough, this kid's inherent stubbornness hasn’t faded. At the beginning of spring, he came to me with 3,000 U for coffee, saying, 'Either I quit completely, or I use this little money to carve a path.' I thought he would repeat the same mistakes, but unexpectedly, this time he actually came up with three iron rules, turning a bad hand into a winning one. As a senior analyst, I must break these three pieces of advice down for everyone; they are much more practical than those flashy technical indicators.
The first rule is the '30/30 rule'; the principal is the lifeline of the crypto market. Chen Hao used to go all-in for profits, but he has completely changed his ways: for each trade, he invests a maximum of 30% of his total capital. If losses reach 10%, he immediately cuts losses and exits without hesitation. I always emphasize to my fans that the volatility in the crypto market far exceeds that of traditional financial markets. Even the most promising asset should not have all your eggs in one basket. Chen Hao calculated for me: if you lose 10%, you only need to gain 11% to break even; but if you lose 50%, you need to gain 100% to fill the hole. The difficulty in the middle is not trivial. After years of trading, I have also adhered to the principle of 'prioritizing principal', and even if I miss a hundred so-called 'doubling opportunities', I will never let my principal face the risk of significant loss. You must know that as long as your principal is still there, there will always be a chance to catch the next wave of market movement.
The second rule is to follow the trend and not to stubbornly resist the market like a 'stubborn mule.' Chen Hao used to love guessing tops and bottoms, thinking he could predict market movements, but each time, the market rubbed him down to the ground. Later, he wised up; when the market was bullish, he would go long, and when it was bearish, he would short decisively. Like a surfer riding the wave, he no longer went against the market. Recently, when the crypto market experienced a trend, he made continuous profits for over ten days, earning as much as 8,000 U in a single day. When he shared his joy with me, his tone was as light as if he had won the lottery. I often say that the trend is the most reliable friend in the crypto market. Instead of exhausting yourself predicting the market, it’s better to honestly follow the trend. Many retail investors always think they can make a fortune by going against the market, unaware of the terrifying power of market trends. The result of going against the trend is often to be swallowed by the torrent of the market.
The third rule is to secure profits and not let greed cloud your judgment. This is the key to Chen Hao’s turnaround and the core message I repeatedly emphasize to my fans. Now, every time he makes a profit, he only reinvests 30% of the profits back into the market and withdraws all the rest from the account. In his words: 'The numbers on the screen are all virtual; only the money that actually goes into your wallet is the real deal.' I’ve seen too many retail investors who, after making a little, want to make more, only to not only give back their profits but also lose their principal; this is greed at work. The crypto market changes rapidly; even seemingly stable assets can suddenly experience significant fluctuations. Securing profits in a timely manner is the only way to firmly keep your gains. Though this approach may seem to make money slowly, it is stable, and accumulating small amounts can lead to earning more in the end.
Now, Chen Hao has built a small communication group, and he pulled me in too. There’s a newcomer in the group who started with 1,500 U and followed Chen Hao's method to reach 8,000 U in just three months; there’s also an older brother who almost impulsively went all-in but was stopped by Chen Hao in time, avoiding a liquidation crisis. Chen Hao said in the group: 'Actually, many people playing crypto assets don’t lack skills; what they lack is the discipline to control themselves.' When I saw this, I remembered how he looked last year, red-eyed while drinking at a barbecue stand, and suddenly felt that this was the real turnaround—not just a turnaround of account funds, but a rebirth of trading mentality and discipline.
As a senior crypto analyst, I've seen too many people rise and fall in the market. Some made money by luck, only to lose it back through skill, while others steadily profit from strict discipline. The crypto market has never been a place where you can win just by gambling; those who can make money in the long term are often those who can maintain discipline and control themselves. If you are also a retail investor in the crypto market and have lost money due to impulsive trading, you might want to try Chen Hao's three iron rules; perhaps you will gain different insights.
