The cryptocurrency world never eliminates those with poor skills, but rather those who do not follow the rules and gamble.
Last week while drinking coffee, I heard that the friend who previously sought my help has gone bankrupt again. This time, he fully invested when a certain celebrity's 'presidential coin' was launched, and as a result, the price halved within five minutes, causing him to lose three months' salary.
This reminds me of five months ago, when he knocked on my door overnight, clutching the remaining 1200U, having lost even next month's rent. At that time, he had followed the trend and chased after a popular meme coin, going bankrupt twice in three days, and he was on the verge of a breakdown.
I didn't paint a grand vision for him, I only said three very straightforward things. Five months later, his account surged from 1200U to 21,000U, but I had already blocked him.
01 The redemption of gamblers starts with dividing funds
I was clear that what he needed at that time was not complex indicators, but a baseline for survival.
I had him divide 1200 U into three parts, each 400 U, each with its own mission: the first part only for day trading, one trade per day, and must exit after a 4% profit; the second part waits for key points and will not enter unless it reaches the predetermined position; the third part locked in a cold wallet, unless the sky collapses, it will not move.
Initially, he thought I was too conservative, saying that this amount of money was not enough for others' contracts. But while he hesitated, someone in his trading community fully invested in a hot coin named 'LABUBU', which subsequently plummeted 87% in one day, going straight to zero.
After seeing this real case, he obediently followed my advice.
02 The trend is your only friend
My second principle to him was: the market is in a sideways trend 80% of the time, and there are not enough opportunities worth acting on in less than 20%.
I had him install a price alert function; most of the time he should work when he should, sleep when he should, and only consider entering the market when there is a significant volume breakout at key moving averages.
I remember once he waited for DOT to surge before following in, and after a 20% profit, he immediately wanted to increase his position. I stopped him and told him to transfer one-quarter to his bank card after a profit of over 12%, truly securing his gains.
He later told me that it was during that time he realized: resisting the urge to trade is harder than frequent trading, but it is also more profitable.
03 Control your hands with rules, not feelings
The third principle is about the discipline of stop-loss. I require him to set a stop-loss point of 2.5% for each trade, and after a profit of over 7%, move the stop-loss to the cost line.
Once, after buying BNB, he thought it would soon rise and wanted to cancel the stop-loss I had him set. I directly warned him to either follow the rules or play on his own. As a result, that night BNB suddenly plummeted by 10%, and because of the stop-loss, he automatically preserved his principal.
When he thanked me later, I only replied: 'Stop-loss is not cutting losses, it's extending life.'
04 The tragic repetition stems from human greed
Five months later, when his account rose to 18,000 U, things began to change.
He was no longer satisfied with stable returns and began to immerse himself in various signaling groups, leveraging and fully investing in newly launched meme coins. When I saw him start posting profit screenshots and complaining that my methods were 'too conservative', I knew he was not far from liquidation.
Sure enough, in the following week, his principal fell back by 40%, yet he confidently stated that he could make a comeback next time.
I decisively blacklisted him. Not because he was losing money, but because he had turned from an investor into a gambler, and I never associate with gamblers.
05 The essence of survival in the crypto world
I have seen too many people obsessed with studying various complex indicators, yet neglecting the most core part of trading - discipline.
Real veterans in the crypto world understand that position management is more important than coin selection. Keep crypto assets within 5% of total assets and never go all in on one coin.
The secret to stable profits is just eight words - 'Don't be greedy, don't leverage, don't show off.' Those who survive will eventually become rich; however, the rich may not survive.
In my trading career, I have summarized the most core point: the market is always in a cycle, just with a different disguise. Those who once lost in the ICO bubble and NFT frenzy are now repeating the same mistakes with meme coins.
There is no stable wealth in the crypto world, only stable survival. Set stop-loss and take-profit lines; the market will always have opportunities, but if the principal is gone, it's really over.
The story of my friend is being replayed every day in the crypto world, which is why I only share concepts now, not specific trades. True growth comes from building your own system, not following others' signals. Follow Brother Bin to learn more firsthand information and precise points in the crypto world; learning is your greatest wealth!#加密市场反弹 #小非农数据不及预期 $ETH
