At two in the morning, the screen was glaringly bright. The moment Ethereum dropped below $3800, my account balance was stuck at 420U, whereas five months ago, this number was 20,000U. My fingers hovered over the keyboard for three minutes. Unlike usual, I didn't panic to replenish my holdings; instead, I smiled: In the crypto market, what truly harvests you is not volatility, but uncontrollable greed. As an analyst who has been deeply involved in the market for 6 years, this is the most painful awakening I have earned with my hard-earned money.
1. The core of most people's losses: Turning investment into 'emotional gambling'
I have seen too many cases go from profit to zero, including myself in the past. Upon review, almost all losers repeatedly make these four fatal mistakes, which I often emphasize to my students as the 'Four Traps of Losses':
Chasing blindly: seeing the candlestick rising makes one excited, always fearing missing the so-called 'hundredfold opportunity', rushing to enter before the trend is confirmed, essentially being bound by market emotions;
Going all in with leverage: always feeling that 'light positions earn too slowly', investing spare money is still not enough, insisting on leveraging for excitement, completely ignoring the basic logic that 'leverage is a double-edged sword';
Stubbornly resisting the trend: when prices fall, one comforts oneself with 'this is just a washout'; the more it falls, the more one adds to the position, treating the principal as 'buying bullets at the bottom', ultimately striking out at the halfway mark, and positions are directly breached;
Mistaking luck for skill: earning a few short-term gains leads to arrogance, believing one can precisely predict the market, abandoning risk control, only to return to square one after one mistake.
I fell victim to these four points; after three consecutive position breaches, 20,000U shrunk to 420U. It was at this moment that I completely understood: the survival rule of the crypto market is never about 'how fast you earn', but 'how long you survive'.
Second, the rebirth plan of 420U: position control is the 'life-saving symbol' of the market
After reflecting on my pain, I cleared all the noisy group chats, unfollowed those emotional guides who only shout signals, and established a 'triangular position control system' for myself—this is not a complicated technique, but it is the core of my recovery from 420U, and I am now systematically training students with it.
1. Test the waters with a small position to verify the trend
This is the point I emphasize the most: never use your principal to gamble on trends. For the first trade of 420U, I only took out 10% (42U) to enter and test. The core logic is: confirming the trend takes time, and using a small position for testing can minimize misjudgment costs. Only when the trend is clearly validated (e.g., breaking key resistance and stabilizing) should you gradually increase your position with the profits, and absolutely do not add to your principal.
2. Profit rolling, building a solid safety cushion for the principal
Many people get carried away after making money, investing all their profits to continue adding positions, ultimately ending up with nothing. My principle is: after taking profits on each trade, first withdraw the principal, and only use 30% of the profits to start the next trade. For example, when ETH rebounded from 3800 to 4280, my 42U turned into 186U, and after withdrawing the 42U principal, I only used 37U (30% of the profits) to continue operating; even if I incur losses later, the principal is unaffected.
3. Reject fantasies of getting rich quickly; set emotional stop-loss lines
'A day in the crypto market is like a year in the human world' has harmed too many people; I agree more with 'steady and steady, slow is fast'. I set a strict rule for myself: if daily profits exceed 30%, I forcibly take profits and exit, never coveting 'the last coin'; if daily losses reach 5%, I immediately stop all operations and review before re-entering. The market is never short of opportunities; what is lacking is the mindset to control emotions.
This system seems 'conservative', but execution is key. Last year, when ETH surged from 3800 to 4500, many people doubled their positions and chased after more, only to be hit by short-term corrections, while I relied on profit rolling, and my account slowly climbed to 1780U—this is the power of position control: not chasing short-term windfalls, but ensuring long-term survival.
Three, my core view: the key to market profitability is controlling 'rhythm' rather than 'prediction'
After being an analyst for many years, I found a pattern: those who can truly make long-term profits are not necessarily the ones with the most precise technical analysis, but they definitely have the best control over rhythm. Many people lose because of 'chaotic rhythm', and the core reasons are three:
First, greed distorts judgment. Many people clearly understand the trend but always want to 'capture the entire market', trying to eat from the head to the tail of the fish, resulting in being pierced by the tail. My experience is: only earn the money you can understand; decisively leave the market when the trend is unclear is more important than 'being greedy'.
Second, excessive reliance on external signals. Many so-called 'analyses' in the market are essentially to guide emotional harvesting. I have always told my students: truly reliable decisions can only be based on one's own position management and risk tolerance; others' opinions can only serve as references, not as operational bases.
Third, treating the market as a casino. Many people enter thinking of 'quick wealth', ignoring the inherent risks of the crypto market. I have seen the most stable profit-makers treat it as a long-term investment, keeping their rhythm and not being led by short-term fluctuations—holding on is more important than making quick profits.
Four, the essence of rolling positions: use time to exchange for space, allowing mindset to lead operations
Three months later, my account grew from 420U to 123,000U. Many people ask me, 'Is there a shortcut?' My answer is: the core of rolling positions is not how much you earn, but 'not getting wiped out'; specifically, it comes down to two things:
First, strict stop-loss: no single trade loss should exceed 5% of the total position. This is the 'life-saving line' I summarized from countless losses; even if I miss a market opportunity, I must not let myself lose the chance to re-enter; second, withdraw profits in batches, ensuring the safety of the principal before using 'market money' for speculation. As I often say: the principal is 1, and profits are the subsequent 0s; without 1, any number of 0s is useless.
A former student who transitioned from a major internet company to crypto investment once told me: 'In a bull market, many people have the skills, but their mindset collapses, and in the end, they still lose.' This statement really resonated with me—profits in the crypto market have always been a victory of mindset and position control; technology is merely a supplementary tool.
Five, a message for you who are struggling with losses: stabilize your position first, then talk about profits
If you are currently deep in losses, don’t rush to find 'turnaround opportunities'; first, ask yourself three questions, which I ask every time during one-on-one guidance with students:
If this trade loses completely, will it affect your normal life?
Are you increasing your position now because the trend has been confirmed, or because you are unwilling to accept previous losses?
Is the current operation based on a pre-established plan, or is it being driven by emotions?
The crypto market has no myth of guaranteed profits, but there is a rhythm that allows you to survive long-term. I never believe in overnight wealth; I believe more in the power of time and compound interest. True profits come from a replicable position control logic that is accumulated slowly.
