In the crypto space, for contract players, regularly withdrawing funds is the simplest way to control risk. In trading contracts, everyone will have times when they earn two times, three times, or even ten times, but in the end, most outcomes are zero again and they re-deposit. In the meantime, there is always the thought that the more principal you have, the more you can earn at the same ratio. Ultimately, during a major drawdown, the mindset collapses, leading to reckless large position trading that results in total loss, and then re-depositing just to sustain living expenses.
I have experienced this process too many times. Over the past year, I lost about 3300u, mostly with 100u and 200u deposits. Most of the time, I would double the amount and then get liquidated or hit stop-loss during a major drawdown, causing a mindset explosion leading to total loss. A small portion of the time, the losses would accumulate slowly until the total was gone. There was also a time when I lost 100u down to 20u and then made it back to 200u only to lose it all again. The most was in November last year when I deposited 300u and within ten days made it up to 1300u, then during a major drawdown it fell to 600u, and my mindset collapsed, leading to reckless trading and loss.
So it can be found that many times it is not that there is no ability to make money, but rather the desire to make money too much, wanting to quickly grow the funds leads to getting carried away. Getting carried away is the beginning of losing everything.
So no matter how much capital, once profits reach a certain level, such as doubling, or 3 times or 4 times, it's best to take out the principal first. Interestingly, withdrawing funds after the principal decreases can reset the mindset, returning to calm and taking things step by step. However, losing to a certain amount (for example, a 30% drawdown) can be very distressing. Trading is contrary to human nature, so maintaining calm is the most important thing. If one keeps getting carried away while trading, then regularly withdrawing funds to reduce the principal can help reset the mindset.
I recently deposited 500 bucks, around 67u, after a few days it reached over 200, decisively cashed out the principal, and now I have 200u again, feeling very calm. I've been in the crypto space for a year, and this is actually my first time doing c2c withdrawal, it's hard to believe. When I made a few hundred u before, I always thought about increasing the principal quickly to recover the losses from before, but in the end, without exception, I lost everything, and the total loss kept increasing. Looking back now, it was truly unwise. One should forget the total amount of losses, just work with what you have, and don't always think about quickly recovering, just take out the principal after multiplying a few times, and as long as the mindset is right, losses will eventually come back.
I believe that in the crypto space, as long as you have the ability, the amount of principal is completely unimportant. Regularly withdrawing funds to support living expenses and give yourself positive feedback will eventually lead to financial freedom.
Last week I lost over 500u because on Monday morning I deposited 5k to buy the dip on Ethereum at 2800 and got liquidated. Usually, I deposit 100u. When I see a big drop, I want to deposit a bit more to catch the dip, but getting liquidated within an hour is indeed hard to bear.
Occasionally I share my recent contract activities on Binance, I am a small fund contract player, only doing contracts, long-term compound interest, with a long-term goal of doubling in a week. If only counting the last deposit from last week, I have actually exceeded my target (about 4 times already). Of course, if I can't achieve doubling in a week, I won't force it or force trades.
Ethereum is bearish, this Ethereum position is very low, about 5% at 100 times leverage is enough, looking at around 2530. Not setting a stop-loss for now, fearing that after hitting the stop-loss it will drop further. We'll see the situation tomorrow morning and set a stop-loss at the opening price after it moves out a certain space.
Personal opinion, for reference only, let's learn and communicate together, and make progress together. I wish everyone financial freedom soon.