The line between refusing to stop losses and waiting for opportunities determines whether you end up losing everything or making money.
Earlier this year, a trader came to consult with me. He had lost $800,000 in the previous market cycle and had only $20,000 left in his account. He asked if he could turn things around in this wave of the market. My answer was very direct: first, put away the idea of "breaking even."
After a huge loss, the easiest trap to fall into is rushing to recover losses, which only leads to deeper losses. So I planned a solid trading strategy for him, and 28 days later his account broke through to $800,000.
This isn't some magical trading technique—it's purely a victory of execution and discipline.
**How to allocate positions to avoid going all-in**
My suggestion is to divide the account into five parts, controlling each single trade at $4,000. Why exactly five parts? This is based on risk calculations. Crypto volatility is too extreme. On January 3rd, 2026 alone, over 110,000 people got liquidated. Many people were wiped out because they bet their entire net worth on a single trade after one mistake.
Traders who truly understand trading won't go all-in. Going all-in isn't trading at all—it's gambling. When facing the temptation of market moves, you must learn to stay calm and spread your positions reasonably. This isn't cowardice; it's how you survive longer in the market.
Experienced traders know that the smart approach is to enter when conditions favor you, not to mindlessly follow the crowd and go all-in or all-out.
**Stop loss must have a bottom line: exit at 3.8% floating loss**
The stop loss rule is also critical. Set a rule to immediately stop loss when floating losses reach 3.8%—no exceptions. This percentage is a threshold calculated repeatedly based on market volatility rates.
The line between refusing to stop losses and waiting for opportunities determines whether you end up losing everything or making money.
Earlier this year, a trader came to consult with me. He had lost $800,000 in the previous market cycle and had only $20,000 left in his account. He asked if he could turn things around in this wave of the market. My answer was very direct: first, put away the idea of "breaking even."
After a huge loss, the easiest trap to fall into is rushing to recover losses, which only leads to deeper losses. So I planned a solid trading strategy for him, and 28 days later his account broke through to $800,000.
This isn't some magical trading technique—it's purely a victory of execution and discipline.
**How to allocate positions to avoid going all-in**
My suggestion is to divide the account into five parts, controlling each single trade at $4,000. Why exactly five parts? This is based on risk calculations. Crypto volatility is too extreme. On January 3rd, 2026 alone, over 110,000 people got liquidated. Many people were wiped out because they bet their entire net worth on a single trade after one mistake.
Traders who truly understand trading won't go all-in. Going all-in isn't trading at all—it's gambling. When facing the temptation of market moves, you must learn to stay calm and spread your positions reasonably. This isn't cowardice; it's how you survive longer in the market.
Experienced traders know that the smart approach is to enter when conditions favor you, not to mindlessly follow the crowd and go all-in or all-out.
**Stop loss must have a bottom line: exit at 3.8% floating loss**
The stop loss rule is also critical. Set a rule to immediately stop loss when floating losses reach 3.8%—no exceptions. This percentage is a threshold calculated repeatedly based on market volatility rates.