Is trading coins a way to get rich? What does getting rich mean? Getting rich is relative. Turning 100,000 into 1,000,000 might seem rich to some, but people in Shanghai might scoff, as 1,000,000 can only buy a decent toilet there. Turning 1,000,000 into 10,000,000 can buy a three-bedroom apartment in Shanghai, which is considered 'normal' for a citizen. Therefore, getting rich is relative, depending on your principal. If your principal is small, no matter how large the profit, the absolute value is still insufficient.
Only scale can generate benefits. To survive long-term in trading, investment risks and any possible events must be considered. The core of leveraged trading is to gradually increase positions during profitable states and to gradually decrease positions during losses to minimize losses. This is the essence of trading!
I. Risk control system, position dynamic management rules
▫ Positive pyramid position increase: increase profitable positions by a ratio of 1:0.6:0.3
▫ Reverse razor position reduction: halve the position of losing trades each time
▫ Leverage usage rate not exceeding 20% of account net value
Stop loss iron rule
Single loss ≤ 2% of total capital, daily loss ≥ 5% will trigger a mandatory trading halt, weekly loss ≥ 10% will enter a review cooldown period
II. Trading discipline framework
Signal filtering mechanism
✓ Triple verification system: fundamental + technical + emotional resonance
✓ Key support/resistance level breakthrough confirmation
✓ Volatility threshold trigger (ATR ≥ 2 times the average)
Time control principle: clear positions 1 hour before major data releases, stop trading for the day after 3 consecutive losses, reduce position size by half during inactive periods (e.g., during US market closures)
III. Psychological management model
Profit status response strategy
✔ Withdraw 10% to lock in profits when profits reach 20%
✔ Reduce leverage by 10% after each new high in net value
✔ Set dynamic profit-taking: automatic liquidation at 30% drawdown
Loss recovery process
① Trigger circuit breaker mechanism: pause trading for 24 hours
② Execute trauma review: record emotional volatility nodes
③ Develop a recovery plan: simulate trading verification for 2 weeks
IV. Strategy evolution system
Diverse trading matrix
▶ Configure 3 types of uncorrelated strategies (trend/arbitrage/hedging)
▶ Dynamic adjustment of capital allocation ratio 5:3:2
▶ Quarterly strategy effectiveness evaluation
Response to extreme market conditions
⚠ VIX index > 30 activates crisis plan
⚠ Black Swan event triggers reverse hedging
⚠ Forcefully reduce positions to 10% during liquidity exhaustion
V. Continuous growth mechanism
Trading log specifications: record the basis for each trade decision and emotional state, indicate strategy execution completeness (1-5 scoring system), weekly statistics on win rate/profit-loss ratio/maximum drawdown, cognitive upgrade cycle
▷ Study 2 central bank policy reports each month
▷ Participate in professional trading psychology training quarterly
▷ Annual strategy backtesting (10 years of data)
Core formula for survival rules:
Long-term survival rate = (risk control × discipline execution) / (emotional volatility + leverage abuse)
I hope my fellow coin traders take the time to read this carefully; it's something I spent 2 days organizing. I hope my method helps you make money this year.#币安HODLer空投NEWT