The cryptocurrency world is not a casino, but a battlefield of human nature. Those who survive are never the smartest, but the most disciplined.
Two months ago, I received a private message: 'Teacher, my 50,000 U principal is left with only 4,600, can I turn it around?' The sense of despair conveyed in the words almost overflowed from the screen. To be honest, I didn't have high hopes for him at the time — the cryptocurrency contract sea has drowned too many sailors yearning for overnight wealth.
What surprised me is that yesterday he sent a screenshot of his account: balance 218,000 U. This is not a myth of sudden wealth, but a comeback story of a 'desperate person' strictly following a set of survival rules.
1. Core of the comeback: Turn trading into an 'assembly line operation'
The initial mistake this fan made is similar to most people: blindly following trends, over-leveraging, and emotional trading. In the crypto world, this is akin to walking into a minefield unprotected.
The first prescription I gave him sounded technically insignificant: 'Divide 4600U into 10 parts, using a maximum of 460U per trade'
He was stunned: 'When will I make a profit?'
I countered him: 'Do you want to lose everything quickly, or slowly survive?'
Real contract experts understand that position control is not a skill but a survival instinct. For example, with 1000U opening 10x leverage, a 10% price fluctuation leads to liquidation; whereas with 2000U opening 5x leverage, it can withstand a 20% fluctuation space - a 15% daily fluctuation in the crypto world is common, so that extra 10% space is your 'lifeline'.
He strictly followed three iron rules:
Exit decisively with a profit of 20%-30%, do not cling to the battle
Stop loss immediately when losses reach 5%, do not harbor any illusions
If you have three consecutive losing trades, shut down and stop trading
This sounds simple, but in reality, 90% of people will fail to human nature when executing. As his account slowly climbed from 4600U to 8000U, he excitedly asked me: 'Should I increase the position and make a big move?' My response was resolute: 'Remember, slow is fast.'
Second, the secret that contract experts won’t tell you: low leverage is great wisdom
Many people are obsessed with high leverage, thinking that 50x or 100x can lead to quick riches. But the truth is: high leverage = chronic suicide.
I had him compare two plans:
Plan A: 1000U opening 10x leverage, liquidation occurs at a 10% fluctuation
Plan B: 2000U opening 5x leverage, liquidation occurs at a 20% fluctuation
On the surface, the positions are the same, but the operational space and margin of error for Plan B double directly. In the volatile crypto market, high leverage makes you dance on a tightrope, while low leverage gives you a bulletproof vest.
The more critical aspect is the change in mindset. When he operates with 5x leverage, a 1% price fluctuation does not make his heart race. In the past, when using 20x leverage, every point of fluctuation made him anxious - a stable mindset leads to accurate decisions.
3. The golden rule extracted from bloody lessons
After two months of practical experience, we summarized these life-saving rules:
1. Stop-loss is more important than take-profit
Stop-loss is not admitting failure, but preserving fighting strength. Setting a stop-loss line is like fastening a seatbelt - it may feel restrictive at times, but it saves your life in critical moments.
2. Learning to stay out of the market is the highest realm
When the market is unclear, being out of the market is profit. Many people can't resist the temptation and end up getting hurt repeatedly in ambiguous market conditions. Better to miss out than to take unnecessary losses.
3. Regularly withdraw profits when in profit
He takes half of his profits every time he makes 5000U, ensuring that profits are secured. No matter how good the account numbers look, they are just numbers; the real money is what you put in your pocket.
4. Focus on hot events rather than purely technical indicators
Real big markets are often driven by events. For example, policy changes, major project updates, etc., these are the core drivers of price fluctuations.
4. Survive and wait for the wind to come
The crypto world is never short of opportunities, what’s lacking is the patience to survive until the next opportunity.
I have seen too many people pursue the 'Holy Grail indicator', study various complex technical analyses, but overlook the most essential point: trading is a game of discipline.
That fan was able to make a comeback not because he found some mysterious strategy, but because he executed simple rules to the extreme. While others chased after rising and falling prices, he patiently waited for his own opportunity; when others flaunted high returns, he quietly adhered to stop-loss discipline.
Conclusion: What you need is not the Holy Grail, but discipline
The market is still brewing; the real opportunities belong to those who survive. If you have ever fallen in contract trading, ask yourself one question: Do I want to continue chasing the myth of overnight wealth, or first learn how to survive?
