One, core principle: tools are the blade, mindset is the soul

1. Contract essence:

◦ Leverage is an amplifier, not a shortcut to wealth. Large funds are used for hedging, and retail investors need to be wary of the 'meat grinder effect.'

◦ Formula: Actual risk = leverage multiplier \times volatility; mainstream coins suggest 3-5 times, altcoins ≤ 2 times.

2. Trend is king:

◦ 80% of profits come from 20% of one-sided markets; in a fluctuating market, use light positions to trial and error; in a trend, roll over positions to amplify profits.

◦ Mnemonic: If there is no pullback in an uptrend, expect higher; if there is no rebound in a downtrend, expect deeper.

Two, survival rule: risk management is the lifeline

1. Mechanical stop loss:

◦ Single trade loss ≤ 3% of principal; risk of liquidation drops by 80%.

◦ Case: With a principal of 1000U, if losses reach 80U, exit immediately to avoid the vicious cycle of 'holding onto a position → liquidation.'

2. Position management:

◦ Position allocation strategy:

▪ Assault team (30%): short-term sniping, 5% profit-taking

▪ Defensive team (60%): trend positions, 20% stop loss

▪ Strategic reserve (10%): for extreme market conditions.

3. Leverage selection:

◦ Conservative: 3 times | Aggressive: ≤ 10 times

◦ Black swan alert: for every 1x increase in leverage, the probability of liquidation rises exponentially.

Three, technical essentials: simplicity is effective

1. Candlestick language

◦ Key formations:

▪ Breaking previous highs + contraction pullback → bullish signal

▪ False breakout + increased volume stagnation → bearish trap.

2. Moving average system

◦ Golden cross/death cross must be combined with volume; signals above the 4-hour level are more reliable.

Four, mindset training: combating human weaknesses

1. Emotion management

◦ Three self-check elements before opening a position: no emotions, have signals, bring a stop loss.

◦ Mandatory cooling-off: trading is prohibited within 24 hours after a loss.

2. Anti-FOMO rule

◦ When others flaunt their profits, ask yourself: 'Does this align with my trading plan?'

3. Profit withdrawal

◦ Withdraw 30% to a segregated account for every 100% earned, reducing the 'gambler's mindset.'

Five, ultimate mindset: long-termism

• Trade less: top traders have an average trading frequency 63% lower than retail investors.

• Diligent review: record the emotional triggers for each trade (e.g., 'placing orders late at night due to anxiety').

• Survive: Compound interest formula = (principal \times win rate)^{time}; time is the only advantage for retail investors.

Conclusion:

The market always rewards survivors who practice 'rationality + discipline.' Save this article, and revisit it before each trade; let’s reach the peak of wealth together in the process of trading!#交易哲学