I've seen too many friends in the crypto world rush in with their principal, chasing news and contracts, only to either get liquidated on the beach or make a little money and then lose it all — until last month, when my student who started with 600U sent me a screenshot of their account rising to 38,000 U, I became even more convinced: making money in crypto has never relied on the skill of "guessing bottoms and tops", but rather on the clumsy method of properly allocating money and strictly adhering to rules.
When he first found me, he had already lost confidence, saying "If I lose again, I will completely exit the market." I didn't teach him any "exclusive indicators", I just let him split 600U into three parts and grind for three months — this method seems simple, but it hit the core of making profits in the crypto world: preserving the principal is more important than anything else.
First 200U: short-term position, earn 'steady money' instead of 'quick money'.
Short-term trading is not about betting on size, but a compounding game of accumulating small amounts. I only have two rules:
At most two trades a day, no matter how enticing the market is, never add more;
Set a stop-loss in advance, leave the market immediately upon touching the line, even if the market turns back afterward.
Many people fail in short-term trading, not because they never made profits, but because they want to earn 20% after making 10%, or hold on to recover after losing 5%, ultimately turning small profits into big losses. My student firmly adhered to the rules, even if sometimes missing out on 'big markets', he never broke the rules — after three months, the short-term position never lost big money, but instead accumulated confidence through repeated small profits.
Second 200U: trend position, earn money 'with the trend' instead of risking 'against the trend'.
The dumbest thing in the crypto world is to go against the trend. The trend is like the tide; going with the flow can easily bring you ashore, while going against it will only leave you shattered.
I had him turn this 200U into a trend position, only looking at weekly signals:
Do not pay attention to rumors, do not follow the crowd in 'calls', only wait for the trend to be clear (such as moving averages in a bullish arrangement, key levels breaking with volume) before entering.
Once the trend reverses, never linger, exit decisively, even if you've only made a little profit.
There was one time he waited two weeks for an opportunity that met the criteria, entered the market and held for 20 days, doubling his profit directly. This is the meaning of a trend position: less operation, more waiting, earning enough in one go to offset ten times of random turmoil.
Third 200U: safety cushion, your 'lifesaver' must not be touched.
This part of the money, I repeatedly emphasize 'only touch it when absolutely necessary', its only role is: risk hedging.
The crypto market is volatile; no matter how cautious you are, you may encounter black swans and sudden fluctuations. At this point, a safety cushion is like a 'lifeline' — once other positions face risk, immediately use this part of the capital to make up the position and resolve the crisis of liquidation.
My student relied on this 200U to resolve risks approaching the warning line twice. If it weren't for this buffer, he might have been forced out early and missed the subsequent doubling market.
More important than capital allocation: 4 operational iron rules, none can be lacking.
Simply sharing profits is not enough; without rules for capital allocation, it's just empty talk. These 4 iron rules, he keeps in his memo every day, executing them flawlessly:
If the moving averages do not show a bullish arrangement, resolutely do not enter, even if it seems 'it has dropped to the right level', do not bottom fish.
Must wait for a volume breakthrough of the previous high point, and only enter after confirming with a bullish candle, reject the 'false breakout' trap.
Once profits reach 30%, immediately withdraw half to secure it, and protect the remaining with a trailing stop-loss.
A loss of 5% must be cut, never hold; a profit of 10%, raise the stop-loss to the cost line, ensuring 'profitable positions never lose the principal'.
From 600U to 38,000U, it sounds like a miracle, but only I know that behind this is his restraint of sticking to no more than two trades a day, resolutely not holding losses, and patiently waiting for trends over three months. There has never been a myth of 'getting rich overnight' in the crypto world, only the truth of 'slowly becoming rich' — those who rush the most often die the fastest; while those who hold steady can wait for the wind to come.
To be honest: the logic of making money in the crypto world is very simple; the hard part is sticking to your principles during market fluctuations, and not breaking the rules in the face of temptation. If you are still relying on guessing market trends and chasing news to make money, why not try dividing your capital and establishing rules — perhaps the next turnaround will be you.
I will continue to share specific methods for trend judgment, stop-loss and take-profit setting techniques, and allocation plans for different capital scales. Follow me, and I'll help you avoid the pitfalls of the crypto world, using a steady approach to turn small capital into large accounts. What's the rule you've found hardest to stick to in your recent operations? Let's chat in the comments, and I'll give you some tips!
