On the path of cryptocurrency trading, I went from losing sleep over losses to now earning a stable monthly income of a million. It's not due to talent or luck, but a set of methods that are 'too simple to be foolish'—but are straightforward, executable, and effective.
1. Iron Rule of Capital: To make money, first ensure survival
No strategy is useful if you can't withstand a single liquidation.
• Position Sizing Mindset: With a principal of 100,000, only take 10,000 for trial trades, total positions should not exceed 20%.
• Fixed Stop Loss: A single loss of 2% must exit, no hesitation, no holding positions.
• Reject High Leverage: Beginners should directly avoid leverage, and experienced traders should not exceed 10% of their capital. Just this rule can help you avoid most liquidations.
2. Core Strategy: Less is more
The market does not make money by 'doing more', but by 'doing it right'.
• One-Way Trading: Only go long or only go short, no back-and-forth, success rates will significantly increase.
• Mechanical Discipline: Set a 3% stop loss and 5% take profit in advance, more reliable than on-the-spot judgment.
• Control Trading Frequency: The highest quality trades are the first 1-2 each day; exceeding 3 times generally means giving away money.
3. Warning Zones: 90% of beginners die in these pitfalls
• Never add positions against the trend: Every time you add to a position, you're getting closer to liquidation.
• Reduce meaningless trades: Transaction fees can eat away most of your profits.
• Profit not taken is not profit: Most liquidations stem from the phrase 'it should still go up'.
Case Comparison: With the same 100,000, the outcomes can be drastically different
Wrong Approach:
Full position + High leverage → Buy on the way down → Hold positions to liquidation.
Correct Approach:
Only use 20,000 for base positions → 3% stop loss / 5% take profit → Only two high-quality trades per week.
Result: Monthly returns can stabilize at 8%, with compound annual returns directly reaching over 150%.
Expert's Maxims: Remember six rules
Do: Use spare money, maintain discipline, trade in one direction.
Don't: Go all in, hold positions, block both ends.
Final Reminder: Contracts are not a casino.
Those who gamble their living expenses for the future ultimately end up on the road to ruin.
Only by protecting your principal and living long enough can you qualify to talk about 'big money' in the cryptocurrency world.
Sister Lin only does real trading, no empty promises. The team still has open positions; for those who want to learn the methods and turn their fortunes around, get on board and let's get to work.