A post that was 'so close yet so far' is the epitaph of countless people in the crypto world.
By the time he found me, his $5800 principal had been reduced to only 900U after being tossed around in various altcoins. His moments on social media were filled with 'unwilling' murmurs, showing how much he had been tormented by the market these past few months.
But when he talked to me, he was particularly sincere: 'Brother, I know I was too anxious, I want to learn real things from you, please help me.'
I gave him two iron rules: first, only invest in mainstream coins, don't touch any altcoins; second, never exceed 5% of funds for each position, withdraw half of the principal every time the profit doubles, and leave immediately if it falls below the stop-loss line, absolutely do not average down.
He took a screenshot of the rules on the spot and promised to 'absolutely obey.'
Miraculous 62 times
In the following 18 days, his execution impressed me.
I told him to wait for mainstream coins to pull back to key support levels before entering; he truly spent three consecutive days monitoring on-chain data, patiently waiting. I reminded him that increased market volatility requires reducing positions, and without hesitation, he immediately cut his position in half.
This discipline has led to astonishing returns: $900, $2000, $10,000, $38,000; by the 22nd day, his account surged to $56,000, an increase of 62 times.
If the story ended here, it would be almost a perfect comeback story in the crypto space. But the twist of reality always comes unexpectedly.
Out of control ambition
After his account surpassed $50,000, his words began to reveal a dangerous 'aggressive' attitude: 'Bro, the altcoins are soaring madly, the mainstream coins are too slow, I want to heavily invest in the hottest shitcoin, it’s bound to double quickly!'
I repeatedly advised against it: 'Shitcoins have no real value support; they rise quickly but fall even faster. Withdrawing your principal now is already a guaranteed profit, there’s no need to take such risks.'
He said 'Let me think about it' but secretly heavily invested in that shitcoin, even without setting a stop-loss.
By the time I noticed, the coin price had already crashed by 40%, and his account plummeted from $56,000 to $34,000. I told him to cut losses immediately, but he argued with red eyes, 'It’s about to rebound! You don’t understand, this time is different, I can definitely hold on!'
Three days later, the last drop before the shitcoin went to zero left him completely liquidated, with only $1200 left in his account.
The mindset trap after making profits
He deleted me as a friend and only updated his moments with a single phrase: 'So close to making it.'
I suddenly realized: the most terrifying thing in the crypto world is not the ignorance of newbies, but their arrogance after achieving a little success.
This phenomenon is very common in trading psychology. After making profits, traders can easily become overly confident, experiencing the illusion of 'this time is different,' no longer strictly following their original trading strategies and risk control measures, and may even start opening positions blindly, ignoring stop-loss measures, and constantly adding margin in an attempt to recover losses, which often leads to catastrophic consequences.
He was initially successful precisely because he adhered to the most basic trading principles: risk control and position management. The reason for his failure is also simple — he abandoned these principles after making profits.
How to stay calm after making profits?
Set clear profit withdrawal rules. My method of ‘withdrawing half of the principal every time profits double’ is essentially a forced profit-taking mechanism. This not only locks in profits but also reduces the psychological pressure of subsequent trades.
After making profits, one should not immediately increase their position size. Many people want to 'bet bigger' after earning money, which is the most dangerous tendency. Truly mature traders maintain discipline while making profits, allowing for stable growth of profits instead of riding a rollercoaster.
Regularly conduct trading reviews. After each profit, one should ask themselves a key question: 'Was this profit due to a correct strategy, or just luck?' If one cannot answer this question, that so-called 'profit' is likely just money that the market temporarily lent you.
Avoid emotional trading. Blindly chasing highs when the market rises and panic selling when it falls are trading behaviors based on emotion rather than rational analysis, easily leading to buying high and selling low.
My trading bottom line
After all these years, I have formed my own trading bottom line:
Never touch products with excessively high leverage. Leverage is a tool that amplifies risks, but the vast majority of people will ultimately be harmed by leverage.
Absolutely do not chase after rising prices or sell in panic. The short-term fluctuations of the market are difficult to predict, and blindly following trends often leads to becoming a bag holder.
Always adhere to a stop-loss strategy. Any trade must have a clear stop-loss point before entering, as this is the bottom line for survival.
There are always a group of people in the crypto world who, during a bull market, are complacent, thinking they are the reincarnation of stock gods; only when the bear market arrives do they realize they have been swimming naked all along. By then, they have already lost everything.
True trading wisdom is never about learning how to double your investment, but rather learning to stop when it’s time to stop. Unfortunately, most people only understand this when they face liquidation.
Have you ever been “so close to making it”? Follow Xiang Ge to learn more firsthand information and precise points about the cryptocurrency world, becoming your navigation in the crypto space, as learning is your greatest wealth!#巨鲸动向 #加密市场观察 $ETH
