In 2017, one night near dawn, I stared at the red words “Position Liquidated” — the account was wiped out, with a balance of only 3 million left. That was the remainder after I burned through 20 million in capital and foolishly borrowed another 50 million to cover the losses.
Back then I was so poor that even a pack of noodles had to be counted down to the last cent. Friends told me I “didn’t fit the market,” and my family wanted me to close my account and forget about crypto.
But I am determined not to leave the market.
I print out all the historical trades that burned, sticking them to the wall next to my desk. Every night I scrutinize each candle, each 'sweep', each FOMO that has destroyed my discipline. I learn, I hurt, I scold myself.
8 years later, I have built my own trading system. I can live off it. I am free because of it. As for those who entered the market with me that year — 90% have disappeared.
Today I won't talk about high-level theories. I just leave behind 3 life-and-death principles, which are what I paid for with debt, sleepless nights, and my youth. If you are new — this article is enough to help you avoid 80% of account explosion traps and save 5 years of being lost.
1. Three 'Swords' Creating Profit: Turn Complexity into Simplicity
Newcomers entering the market often sink into chaos:
MACD golden-dead cross
RSI overbought – oversold
EMA crosses
Unusual volume…
The more you look, the more chaotic it gets. Once chaotic, you lose discipline, and you lose money.
The system I am using now is simple enough to make many people laugh, but its stability exceeds 60%.
① Use large frames to determine direction — 'Red light green light yellow light'
I only look at 4H and D of major coins (BTC, ETH).
Do not look at junk altcoins, do not look at trend shitcoins.
The whole market always has only 3 states:
Green: D closes many rising candles, price adjusts but does not break the bottom → only look for buy points.
Red: D closes many falling candles, price bounces but does not break resistance → only look for sell/avoid points.
Yellow: sideways, breaks out but has no volume → stay out.
Remember this one thing:
If there is a trend, do not guess the top or bottom. If there is no trend, do not act at all.
② Determine the trading point — 'The three anchoring areas of the market'
Newcomers lose money because they open orders without a support point.
Just pay attention to 3 areas:
The top and bottom have been tested many times → the market area always remembers.
Fibo: 0.382 – 0.5 – 0.618 → the consensus zone of large capital flows.
Round number threshold (50k – 60k...) → extremely strong psychological zone.
In these areas, just one clear reversal signal is enough to enter an order. The win rate is 3 times that of guessing.
③ Time the moment with a small frame — 'Wait for double signals'
There is a direction.
There is a position.
But it's not enough yet.
Must wait for confirmation signals on a small frame (1H).
I only enter an order when one of two appears:
Reversal K-line: Hammer, Engulfing, Pin bar…
Volume explosion: a rising or falling candle with volume greater than 50% compared to the previous 3 candles.
When both appear: you can almost avoid 90% of fake breakouts.
2. Eight Discipline Rules to Protect Capital: To survive, you must learn how to 'not die'
Making a trade is very easy.
Keeping money is the hard part.
Newcomers die due to lack of discipline, not because they don't know how to analyze.
Here are 8 survival shields that I always write before my desk:
① Only trade top 10 coins
No matter how much hype an altcoin has — stay away.
② Each order has a maximum risk of 2% of the account
No matter how much faith you have, do not go all-in.
③ Always set stop-loss
No stop-loss = waiting for the day the account is wiped.
④ Minimum R:R = 1:3
Profits must exceed losses. This is a mathematical rule, not an emotional one.
⑤ Do not trade 3–5 AM
Low liquidity → easy to be hunted for stop-loss.
⑥ Have a plan before opening an order
There is no 'unexpected situation'.
There is only:
if correct, then where to take profit
if wrong, then where to cut loss
⑦ Spend 30 minutes each day to review
Winning order: why win?
Losing order: because of technique or because of emotions?
⑧ Losing 2 consecutive orders → rest
Because at this time you are no longer trading, you are 'unloading'.
3. Three Red Lines: Touching means losing everything
No matter how skilled you are, just breaking one of the three following rules will cause your account to vanish.
① Never FOMO — absolutely do not chase after a candle rising 8%+
When the market rises sharply, most buyers are… the dumbest of the session.
You jump in at that moment — you are the liquidity.
Similarly, do not catch a falling knife when the candle drops sharply.
② Do not trade when 'it seems a bit right'
A position that you must say:
“Seems like…”
“It seems like…”
“There is a possibility…”
→ means not enough standard to enter an order.
The deadliest mistake of newcomers: fear of missing out — and thus opening an unfounded order.
I would rather miss 10 uncertain good deals than open 1 vague deal.
③ Confused psychology → stay out
Profit 30% → divide to take profit
Loss 5% → cut immediately
The longer you hold, the more emotions tear apart discipline.
Finally, the market is a psychological battle — not a tactic.
Conclusion for Newcomers
The crypto market is not short of opportunities, but it lacks people patient enough to survive and wait for opportunities.
If in 2017 I understood 3 things today, I would not have fallen into debt.
But today I rewrite everything that once shattered my life — just so you don’t have to pay the price I paid.
