“Lin, my principal just evaporated! It clearly only dropped a bit, how could it be gone?” At five in the morning, the phone vibrated like a motor, and just as I answered, I was drowned in tears.
Opened the screenshot—entire position with twenty times leverage, no stop loss set. This is not being harvested; it's wielding the sickle myself.
Eight years of experience in the industry tell me: the entire position is not the problem; betting your life is. I also use the entire position, doubling in six months, relying on three iron rules.
Iron Rule One: Single trade ≤15% of total capital
With a principal of twenty thousand, the most I can invest in a single trade is three thousand. If wrong, it only hurts a bit, leaving enough ammunition for the next time. Going all in will eventually turn you into cannon fodder.
Iron Rule Two: Single loss ≤2%
For a three thousand position, set a 1% stop loss; if I lose four hundred, I stop. Even if I make five mistakes in a row, I still have ninety percent of my capital left. Surviving gives you the chance to turn things around.
Iron Rule Three: Don’t watch during fluctuations, don’t be greedy during profits
Don’t get itchy hands during sideways movements; only act on breakthroughs. After making a profit, set a good trailing stop; don’t add to the position again. What you’ve earned is truly yours.
My friend A Jun once blew up his account every month, but after following these three rules, his three thousand principal turned into five thousand eight in three months, with a maximum drawdown of only 1.8%.
In the crypto world, what matters is living long. If your position is stable, you remain in the game. Can’t sleep tonight? Turn off the software and sleep. When you wake up, your principal is still there; you’ve already beaten ninety percent of people.
Most people don’t lose due to speed, but because they stumble blindly in the dark. I have walked through too many pits, so I am willing to hold this lamp up.
The market is brewing; don’t wander around in the dark alone anymore.
If you are willing, Lin will help you ashore!