The path of trading cryptocurrencies, I went from sleepless nights due to losses to now stable income. It's not about talent or luck, but a set of "as dumb as possible" methods—simple, executable, and effective.

1. The Iron Rule of Capital: To make money, first protect your life

No matter how good the strategy is, it’s useless if you can’t withstand a liquidation.

• Position Sizing: With 100,000 yuan capital, only try 10,000 yuan per trade, and keep total position below 20%.

• Fixed Stop Loss: Exit if a single trade loses 2%, no hesitation, no holding through losses.

• Avoid Over-Leverage: Beginners should disable leverage entirely, and even experienced traders shouldn’t exceed 10% position size. Just this rule alone can help you avoid most liquidations.

2. Core Strategy: Less is More

The market doesn’t make money by “doing more,” but by “doing right.”

• One-way Trading: Only go long or only go short, avoid flipping back and forth, which significantly improves success rate.

• Mechanical Discipline: Set a 3% stop loss and a 5% take profit in advance—more reliable than on-the-spot judgments.

• Control Trading Frequency: The first 1-2 trades of the day are the highest quality; more than 3 trades usually just give away money.

3. Warning Zone: 90% of beginners get trapped here

• Never add to a losing position against the trend: each time you top up, you’re one step closer to liquidation.

• Reduce meaningless trades: transaction fees can eat up most of your profits.

• Profits are not real until they are realized: most liquidations happen because of the mindset “it should still go up.”

Case Comparison: Same 100,000 yuan, vastly different outcomes

Wrong Approach:

Full position + high leverage → buy the dip during a decline → get liquidated.

Correct Approach:

Use only 20,000 yuan as the base position → 3% stop loss / 5% take profit → only two high-quality trades per week.

Result: Monthly returns can stabilize at 8%, with compound annualized returns exceeding 150%.

Expert Tips: Remember these six rules

Must: Use idle funds, stay disciplined, trade unidirectionally.

Don’t: Go all-in, hold through losses, try to block both sides.

Final reminder: Contracts are not casinos.

People betting their living expenses on the future will end up dead on the road.

Only by safeguarding your principal and surviving long enough will you qualify to talk about “big money” in the crypto world.

Trading cryptocurrencies is not just a contest of skill and luck, but also a test of mindset and wisdom. Only those who master these iron rules and strictly follow them can stand undefeated in the crypto circle!