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There is a simplest yet most effective method in the crypto world that is often overlooked. Today, I want to talk about those trading rules that sound boring but are truly sustainable.
Seven years ago, I started with only 35,000 yuan in capital. After countless market tests, I gradually developed my own survival logic. Now, my assets have grown to 60 million yuan, with a stable monthly income of over 200,000 USD. Looking back, all these achievements point to the same fundamental principle: use 50% of your position to steadily advance, and never let a single decision wipe you out.
**Position Sizing: Living is more important than chasing quick profits**
Divide your funds into five equal parts, and only use one part at a time. What are the benefits of this approach? If a single judgment fails and you stop out, you only lose 2% of your total capital. It takes five consecutive mistakes to lose 10%. Conversely, if your judgment is correct, set your take profit at over 10%. This method fundamentally blocks the possibility of going to zero overnight.
Compared to those "all-in" strategies, how big is the difference? In a black swan event, they might be completely wiped out; meanwhile, you always keep some chips to continue the game. The crypto market offers endless opportunities, but the prerequisite is to stay alive.
**Follow the trend: standing on the right side is the key to making money**
"Rebounds in a falling market are traps; only corrections in an upward market are opportunities." This is a basic insight summarized over many years.
Many traders are actually fighting against the trend, rather than making friends with it. What’s the result? They consume their energy and mental strength, only to be educated by the market in the end. The correct approach is to identify the main trend direction and make precise operations within this framework. In an upward channel, wait for a correction before entering; in a downward channel, wait for a rebound before selling. It sounds simple, but execution requires discipline.
**Discipline is the last bottom line**
One of my apprentices used this logic and doubled his account in three months. It’s not because he’s exceptionally smart, but because he truly maintained discipline—trading according to rules and not wavering due to market emotions. In the volatile crypto market, this is a rare quality.
The ultimate winning or losing factor in crypto investing is often not how much you can earn, but how long you can survive. Those who stay alive to participate in the next wave of market movements will see the power of compound interest manifest.