Five years ago, one early morning, I was awakened by the red liquidation alert from the exchange. In just three hours, my account of 6 million was wiped out. I stared at the fluctuating negative numbers, feeling like I was nailed to the cross of reality.
Later, I began to review, summarize, and ask friends, and with a borrowed 120,000, I got back on track. After 90 days, using a method with a 90% win rate, I grew my capital to 20 million. The process was extremely tough, but it brought me these five 'iron rules' today.
Whether you are new to the market or currently trapped, make sure to engrave these in your heart.
Iron Rule One: Crypto trading is not gambling, but a battle - you must have a 'risk control system'.
The crypto world is not a casino, it's a battlefield.
A true trader is a warrior; you must have 'armor' and a 'retreat route'.
You must learn to manage risk when building positions:
Perpetual contracts ≠ gambling tools.
No matter how high the leverage, as long as the position is light and stop-loss is clear, the risk remains low.
Using 1% of capital to open a position with 100x leverage, 99% for risk buffer, in fact reduces risk.
For instance, with a capital of 5000 USDT, I only open less than 20 contracts, set trailing stop profit at 2%, and stop loss at no more than 3%. Operating only 2 hours a day, emotional stability outweighs everything.
What truly destroys people is not the market, but your lack of risk control + refusal to admit mistakes.
Iron Rule Two: Emotions are not a strategy, discipline is the way out.
Retail investors lose money, 90% die chasing highs and cutting losses.
Seeing a coin rise makes you fear missing out, so you go all in; seeing it drop makes you fear it going to zero, so you cut losses overnight.
Don't act on impulse at the moment:
Before buying, write down 'at what price to buy, where to set the stop loss, and when to take profit'.
Add positions when profitable, reduce positions when losing, never add to a losing position.
Don't get emotional about candlestick charts, focus on 'trading volume' and 'structural changes'.
The truth of rises and falls is written in the trading volume. Only with volume is there price; without volume, there is decline.
Iron Rule Three: Only trade what you understand, don't chase hot trends, don't touch emotional coins.
Don't be seduced by the 'myth of getting rich in crypto'.
The projects that rise the most will also fall the hardest.
Chasing hot trends is not as good as focusing on mainstream coins and familiar strategies.
Don't touch coins without independent logic.
If you don't understand sector structure, don't randomly buy altcoins hoping for a rebound.
Bitcoin itself hasn't changed, but its price can rise from 15,000 to 70,000, and then drop back to 15,000. This isn't a change in 'value', but a change in market sentiment.
What you really need to learn in crypto trading is 'understanding emotions'.
Iron Rule Four: No adding positions, no holding onto losing trades, no nostalgia for past prices.
The first step to losing money is adding positions.
Adding positions is 'emotional desire to break even', not a strategy.
If your position is wrong, you should stop loss, not average down.
The mindset of wanting to break even will destroy your remaining capital.
Trading is always about 'process management', not 'obsession with results'.
Being trapped is due to not stopping losses; blowing up accounts is due to stubbornness.
What you've lost is not money, but reason.
Iron Rule Five: Master one model, stabilize it, then expand.
What beginners fear the most is not the inability, but greed leading to confusion and mimicking everywhere.
Understand your market sense, a technique, and a model before diving in.
Don't look at MACD today, study Elliott waves tomorrow, and chase on-chain data the day after.
Mastering one approach is far more efficient than blindly chasing trends.
Crypto trading is not about research; you don't need to master every skill. You just need a system that works and use it repeatedly to make money.
Market conditions are unpredictable, but your strategy must be simple, repeatable, and executable.
Epilogue: Remember, you're not getting rich from a single strike but surviving through discipline.
The reason you can make big money is not because you caught a wave, but because you've endured many crashes, resisted many temptations, and avoided many impulsive actions.
During losses, control your emotions; during profits, control your greed.
The end of trading is 'managing human nature'.
Summary (suggest to screenshot and save).
Five Iron Rules of Crypto Trading:
Risk control first, manage position size, clarify stop losses.
Plan your trades, don't make decisions based on feelings.
Only engage with logic you understand, don't chase hot trends.
No adding positions, no holding onto losing trades, stop losses on time.
Focus on one strategy, stabilize it before expanding.
These five points are my 'life lessons' learned from a 6 million loss.
May you who read this article no longer be prey to the market, but become a true player.
#MyTradingStyle #GENIUSStableCoinLegislation #FederalReserveFOMCMeeting