Is your account balance stuck in place? Adjust these two operational details, and 4,000U can become over 50,000 in three months!

Last month, a friend who’d been following me for quite some time complained: Even though my overall direction isn’t bad, and my timing is decent, I always rush to take small profits but stubbornly hold onto losses, refusing to let go. After half a year of trading with 4,000U, my account balance is basically unchanged.

I reviewed more than thirty of his trades. The issues really boil down to just two things—stop losses that are too hesitant, and stop profits that are too panicked.

Later, he only adjusted these two points. Three months later, he sent me a screenshot showing over 50,000U, saying that the tuition he paid before was just wasted.

The core logic is straightforward: First, figure out how much loss you can tolerate, then consider how much profit you want to take. Don’t jump in thinking about doubling your money before you even understand the risks. If you don’t lose money, it’s already a miracle.

**First Rule: For short-term trades, use “razor-sharp stop losses”—exit instantly when the line is hit**

When using leverage for short-term trades, losses must be kept razor-thin—I use only 2% of my position size for trial trades on ETH short-term.

Set your stop loss directly at 1.5%. For example, last week I opened an ETH position at 93,000, with a preset stop loss at 91,600. As soon as it touched, I immediately closed the position, only losing 50U, instead of holding onto a “maybe it’ll bounce back” hope.

Don’t think small profits aren’t worth it. Consistently making 15%-20% per month adds up and beats gambling blindly by a mile.

**Second Rule: For mid-term trades, protect your position with rhythm—don’t get scared by small fluctuations**

If you want to capture big moves of 30 to 50 points, don’t let a few small red candles throw off your rhythm.

When I had my friend do a mid-term trade on SOL, I had him draw the 20-day moving average as his life line in advance. As long as it didn’t drop below, he held on—even if there was an 8% pullback along the way, he didn’t touch it. When it hit his target of a 60% increase, he took half the profit first, then set a trailing stop for the rest.

Last month, SOL went from 130 to 175, and he used this method to make an extra 22 points.

**Third Rule: Position sizing is more important than direction—heavy positions lead to panic**

My friend always made the same mistake: when he liked a coin, he’d go all in with 60% of his capital. As soon as there was a little volatility, he’d panic and sell, even on trades that could have been profitable.

Later, I told him to size his positions based on the loss he could tolerate. With 3,000U principal, use a maximum of 600U for trial trades. His tolerance for mistakes immediately improved, and he was no longer thrown off by short-term fluctuations.

One last honest truth: Stop losses aren’t a punishment—they’re a shield for your principal. Taking profits isn’t greedy—it’s a commission for your discipline.

Those who survive and profit in the market are always the ones willing to take action first. Are you ready?