In the cryptocurrency circle, there’s a saying: "Those who can buy are apprentices, those who can sell are masters," but those who can walk out of the exchange with a smile are often the floor sweepers who understand that "discipline is king." Today, we won't discuss the myths of getting rich; instead, we will talk about three rules to help you stand firm in the market, and I suggest memorizing the entire text.
First Iron Rule: Stop-loss is both a knife for cutting losses and a life-saving talisman.
When you pray for a market reversal while staring at the screen, the market maker is busy harvesting the 'stubborn faction.' The essence of stop-loss is not admitting defeat, but setting a safety cushion for yourself—fixed stop-loss is like an alarm clock, you must get up when it rings; trailing stop-loss is like climbing stairs, removing the step below you as you ascend. Remember, the market never lacks opportunities, but once your capital is gone, you can only watch.
Second Iron Rule: Taking profit should be like defusing a timed bomb.
I've seen too many people turn profitable trades into losses, vividly playing out a cryptocurrency version of 'The Legend of Zhen Huan.' Fixed take profit is suitable for laid-back players, who set a target price and turn off the computer for safety; trailing stop profits is a game for experts, moving the stop-loss line up by 5% for every 10% price increase, using profits as a shield to continue charging forward. Remember, taking profit is not the end, but an ammunition depot for the next battle.
Third Iron Rule: Dynamic adjustment is a form of performance art.
The market in 2025 is faster than Sichuan opera's face-changing; don’t use last year's strategies to fight this year's battles. Conservatives suggest using a 'profit cushion' strategy, retreating immediately if the drawdown exceeds 50% of floating profits; aggressives can play 'threefold counterattack,' using 30% of previous profits to seek higher returns. The worst thing is to change strategies in the middle of the night; such behavior is equivalent to inventing new rules in a casino.
True experts understand: discipline is not a constraint, but the confidence to enjoy tea during waterfall markets. Only when you find that following rules is easier than monitoring the market can you be considered to have truly entered the cryptocurrency world.
Those who understand have already liked and followed, letting the novices continue to get lost in the noise. I trade cryptocurrency based on first principles; see you next time!
(Reminder: This article does not constitute investment advice; the market has risks, and decisions should be made with caution.)