Trading is all about winning through self-discipline and losing through impulsiveness.
Last month, I brought in a friend who was new to the market. He started with 1200U, and in less than two months, his account peaked at 21,000U, but then he took a huge hit right after. This whole experience made me rethink a lot of things.
When he first came to me, he had already blown up his account twice in a row. The typical newbie path: following signals blindly, aping into any coin rumored to have potential, and within half a month, he lost almost all his principal—even put his rent money in. The more he lost, the more he wanted to make it back, and the more impatient he got, the more mistakes he made.
At that time, I set three rules for him—rules I’ve developed myself over the years for survival.
**Rule 1: Separate your funds, don’t put all your eggs in one basket**
With 1200U, I told him to split it into three parts: 400U for short-term testing, 500U to keep on the sidelines for new opportunities, and 300U as untouchable "lifeline money."
For the short-term portion, take profit at just 4% and get out—don’t get greedy. At first, he thought this approach was too slow. Later, after seeing some people in the group go all in and blow up their accounts in one shot, he finally understood what I meant by "the crypto space isn’t about who runs the fastest, it’s about who stands the longest."
**Rule 2: If you don’t understand the market, stay out**
"When the market is moving sideways, no matter how itchy your hands are, hold back and wait for a clear signal."
There was a time when SOL was consolidating at a certain price for almost ten days. He wanted to get in several times, but I stopped him. We waited until the day it broke out with high volume, then jumped in and made 20% on one trade. That’s when he realized that sometimes, doing nothing is the best move.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
7 Likes
Reward
7
7
Repost
Share
Comment
0/400
BTCWaveRider
· 12-07 02:22
This guy is right, the key is having the patience to hold back. I used to want to copy everything I saw, but now I'm actually making money.
View OriginalReply0
AlphaLeaker
· 12-05 19:52
It's really not an exaggeration—going all in is truly the number one killer in the crypto space. I've seen way too many stories like this.
I also use the 4% exit strategy. It may seem slow, but it lets you survive longer, haha.
The concept of "survival money" really needs to be drilled into newbies, or else sooner or later they’ll even gamble away their rent.
If you don't understand, don't act. Sounds simple, but it’s really hard to do, especially when you’re itching to make a move.
Everyone says they understand waiting for a signal, but very few actually do it; most people just can't wait.
This guy must have had a really rough time dropping from 21,000. Feels like there’s more to his story—didn’t he finish writing rule three?
View OriginalReply0
ApeDegen
· 12-05 19:51
To be honest, this guy just couldn't hold it in and ultimately lost because of his mindset. Leaving at 4% sounds easy, but it's really hard to do. I've crashed myself before, too.
View OriginalReply0
AltcoinHunter
· 12-05 19:51
Reading this story reminds me of my own confused days last year. Started with 1200U, ran it up to 20,000, and then overnight went back to square one. That feeling is really tough.
Seriously, "self-discipline" sounds easy but it's so damn hard to actually do. I still get itchy hands, look at the charts and just want to go all in, have to rely on friends to hold me back.
These three rules are really about spreading out risk, taking profit at 4%... Wait, that's not right, I usually have to double it before I'm willing to sell, so I'm still on the path of a retail investor.
View OriginalReply0
LowCapGemHunter
· 12-05 19:33
Damn, this guy went from 1,200 up to 21,000 and then dropped back down—a classic crypto rollercoaster... Honestly, it all comes down to not being able to keep his emotions in check.
View OriginalReply0
BlockchainDecoder
· 12-05 19:31
From a technical perspective, this guy's risk management framework actually lacks quantitative metrics. How was the ratio for splitting 1200U into three parts determined? There's no scientific basis for it.
View OriginalReply0
CommunityWorker
· 12-05 19:24
What you said is absolutely right; self-discipline really is the only way to survive.
I've seen too many cases where 1200 turns into 21000 and then back to 1200... The key issue is still that "the more you lose, the more you want to recover your losses" mentality—once you fall into it, you just can't stop.
Trading is all about winning through self-discipline and losing through impulsiveness.
Last month, I brought in a friend who was new to the market. He started with 1200U, and in less than two months, his account peaked at 21,000U, but then he took a huge hit right after. This whole experience made me rethink a lot of things.
When he first came to me, he had already blown up his account twice in a row. The typical newbie path: following signals blindly, aping into any coin rumored to have potential, and within half a month, he lost almost all his principal—even put his rent money in. The more he lost, the more he wanted to make it back, and the more impatient he got, the more mistakes he made.
At that time, I set three rules for him—rules I’ve developed myself over the years for survival.
**Rule 1: Separate your funds, don’t put all your eggs in one basket**
With 1200U, I told him to split it into three parts: 400U for short-term testing, 500U to keep on the sidelines for new opportunities, and 300U as untouchable "lifeline money."
For the short-term portion, take profit at just 4% and get out—don’t get greedy. At first, he thought this approach was too slow. Later, after seeing some people in the group go all in and blow up their accounts in one shot, he finally understood what I meant by "the crypto space isn’t about who runs the fastest, it’s about who stands the longest."
**Rule 2: If you don’t understand the market, stay out**
"When the market is moving sideways, no matter how itchy your hands are, hold back and wait for a clear signal."
There was a time when SOL was consolidating at a certain price for almost ten days. He wanted to get in several times, but I stopped him. We waited until the day it broke out with high volume, then jumped in and made 20% on one trade. That’s when he realized that sometimes, doing nothing is the best move.
**Rule 3:**
(Original text incomplete, to be continued)