When I first entered the industry, I also faced liquidation every day. Later, I realized: trading is not about who earns faster, but about who survives longer. Engrave these 6 principles into your bones, and only then will your account curve have a chance to turn positive.
1. Take profit and stop loss are lifesavers
- Taking profit cures greed:
Money in the crypto world seems endless, but your capital can be lost completely. Take your profit and don’t always think about 'earning a bit more'.
- Stop loss to protect capital:
If you're wrong, admit it; don't hold onto a position. Cutting off a finger is better than losing your life; as long as you have capital left, there will be opportunities.
2. Frequent trading = Giving money to the exchange
Ten trades in a day, 9 small profits, 1 big loss — the result is still a loss.
Especially with high leverage: deduct 1-2 points for fees when opening a position; if you don't earn, it's just working for free.
3. Holding cash is advanced operation
'Itching to trade will definitely lead to losses' is an ironclad rule.
- Don't understand the market? Then just wait.
- Afraid of missing out? Remember: missing out doesn't lose money, but random actions will bleed you dry.
4. Small profits accumulate into large gains
100 bucks in capital, 10x leverage:
- Earn 10 bucks (a breakfast) for a 1% increase. Two to three trades a day, with a 60% win rate, easily make over ten thousand a month.
Don't underestimate small amounts; accumulating small amounts is the right way for retail investors.
5. Heavy positions = suicide
No matter how good the market is, a black swan can wipe you out.
Remember:
- Don't open a position exceeding 10% at once
- Consider adding to your position only after making a profit
There will always be opportunities in the crypto world, but if your capital is gone, it's really gone.
6. Unity of knowledge and action is the ultimate test
Knowing ≠ Doing.
I have seen too many people:
- Planned stop loss at 5%, but when losing 10% you think 'just hold on a bit longer'
- Agree to take profit, but when it rises you daydream 'it can double again'
The essence of trading is to cultivate the mind:
- Don't be stubborn when it's time to be cautious
- Be firm when it's time; don't be soft-hearted.

The last piece of advice:
If you can't even execute these 6 principles, leave the contracts as soon as possible — this is not a casino, but it tests human nature even more.
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