As a veteran in the crypto market for 10 years, I have seen too many people rush in with dreams of sudden wealth, only to leave with tears and losses after being 'cut'. But an event that happened in the fan group last week once again confirmed the truth I have always believed: the core of making money in the crypto market is not about chasing the market or betting on insider information, but rather the 'dumb method' of being able to control oneself and stick to discipline.
Three months ago, a fan said his account only had 3600U left and he was losing confidence. He asked me if there was still hope. I didn't recommend any specific assets; to be honest, in this market, what matters more than 'what to buy' is 'how to buy and manage risks'. I only gave him my 3 trading rules that I have used for 5 years and told him to stick it out for 90 days. As a result, last week he directly shared a screenshot in the group: his account grew to 30,000 U, more than an 8-fold increase!
Today, Xiang Ge will break down these three 'survival + profit' iron rules in detail, all real practical insights with no nonsense; if you understand and follow them, you can at least avoid 80% of the pitfalls in the market.
First, correct a fatal misunderstanding: surviving in the crypto market is more important than making quick money.
Many beginners come in with the mindset of 'putting all their chips in for a turnaround', thinking that if they bet right, they can soar to success in one step. But I have seen too many such people end up either being washed out by a wave of retracement or directly blowing up to zero.
My fan can succeed; the first step is to split the 3600U into three parts, each part 1200U. This is my original 'three-stage position management method' — short position, trend position, and survival position, each performing its own duty without interfering with each other. This is not simply 'not putting all eggs in one basket', but it provides three levels of insurance for your funds, ensuring that you always have a chance to stay at the table.
The first iron rule: treat short-term trading as a 'restrained approach', with a cap of two trades per day, never hold on to battles.
The first part 1200U is specifically for short positions, with one core rule: two trades per day, stop whether you gain or lose.
When I was young, I also made mistakes; I traded up to 17 times in one day, panicking to take profits on a slight rise and stubbornly averaging down on a slight drop. In the end, not only did I not earn back the transaction fees, but my mindset was also messed up by market fluctuations. Later I realized: the essence of short trading is 'accumulating small gains', not to let you be a 'full-time trader' for fun.
Opportunities in the crypto market are as numerous as convenience stores on the street. If you go in and buy randomly every day, you will eventually buy 'expired food' and upset your stomach. I have set a strict rule for my fans: no more than two short trades a day, regardless of whether you make 5% or lose 3%, close the software when the time is up, even if the market soars afterward, do not look back. If the trend does not meet expectations, immediately cut losses and exit, never hold on to the fantasy of 'what if there is a rebound'.
The second iron rule: Trend trading should be 'lazy', do not enter the market without seeing a weekly line signal.
The second part 1200U is used for trends, my mantra is: If the weekly line is not confirmed, resolutely play dead; once a signal appears, decisively follow the trend.
Many people like to stare at daily or even hourly charts and get lost in speculation. When someone says a particular asset is soaring, they cannot resist jumping in, only to end up trapped. This is not trading; this is following the trend into a pit. Let me tell you: daily level fluctuations are all noise; weekly level trends are the real trend. It’s like riding a boat downstream; it is 10 times less effort than flailing around in the river, but the premise is that you have to wait for the boat to come, rather than jumping into a river without a boat and struggling.
I have my fans look at only two signals: the weekly MA20 moving average turning upwards, and the trading volume being 1.5 times that of the average of the last five weeks. As long as these two conditions are not met simultaneously, the 1200U will quietly stay in the account, even if those around you are posting profit screenshots, do not be tempted. The core of trend trading is 'borrowing strength', and the key to borrowing strength is 'patiently waiting for the momentum'; the lazier you are, the more you earn in trends.
The third iron rule: treat the survival position as your 'trump card'; no matter how tempting the opportunity, never touch it.
The most critical part is the third 1200U — this is your 'survival trump card position', specifically for dealing with sudden risks. Remember: never invest this money!
I have seen too many 'smart people die on the road of bottom fishing' in the market: when the market crashes, they feel the opportunity has come and pour all their money into averaging down, but the more they average down, the worse it gets, ultimately forced to cut losses and exit. In the crypto market, 'staying alive' is more important than anything; being forced out is like being eliminated in a game, and you have no chance to turn the tables.
What is the purpose of this survival position? If your short or trend positions incur unexpected losses that put your position at risk of forced exit, this money can be used to cover it in time, allowing you to maintain your position and wait for the next opportunity. Those who invest all their money are like going into a minefield with bare arms; getting blown up is just a matter of time; but keeping a survival position means you will always have the confidence to return.
Two practical tips that even beginners can use directly.
In addition to the three iron rules, let me share two practical tips that I have used for many years, simple and brutal, tested and effective:
The golden rule of taking profits and cutting losses: as soon as the profit from a trade reaches 30% of the principal, immediately withdraw half of the profit to a safe account, and set a 10% trailing stop for the remaining part. This way, you have already secured half of your profits, and even if the remaining part retraces, you won't lose your principal; it's equivalent to using market money to gamble, making your mindset much steadier.
The emotional control iron rule: before entering the market, you must write down a 'trading commitment' and stick it next to your computer: ① If losses reach 5%, no matter the reason, immediately cut losses, no bargaining; ② If profits reach 10%, immediately adjust the stop-loss to the cost price, treat the remaining profit as a red envelope from the market; if you have it, great, if not, you won’t lose.
Finally, let me say something from the heart.
From 3600U to 30,000U is not a trading miracle, but the inevitable result of 'making fewer mistakes'. The crypto market has opportunities every day, but your capital is limited; making a mistake reduces your chances. Instead of searching for opportunities every day, it’s better to learn not to make mistakes first.
After 10 years of bull and bear markets, I have seen too many people make money by luck, only to lose it all through skill. Those who can profit in the market for a long time are not the 'best at seizing opportunities', but the 'best at controlling risk and managing themselves'.
If you are still chasing highs and cutting losses, you might try these three iron rules for three months. You will find that making money in the crypto market is not that difficult; the hard part is overcoming the greedy and fearful instincts.
