I have seen too many people make enough money in a year to last ten years, only to lose their entire savings in a month in the crypto market. More fatal than 'not knowing how to earn' is 'not knowing when to stop.'
As an analyst who has been immersed in the industry for ten years, I receive hundreds of private messages every year: 'Teacher, I went from XX million to just a fraction, is there still a chance to turn things around?' When I check their trading records, they almost all hide the same trap: at the peak of profits, they always feel that 'it can go up a bit more.'
Last year, there was a student who left a deep impression on me. At the beginning of 2023, he entered the market with a 30,000 yuan principal and, through a altcoin rotation strategy, saw his account soar to 420,000 by May. At that time, I repeatedly reminded the community to 'take some profits off the table,' but he privately messaged me saying, 'The market is so good now; I will withdraw half when it breaks 500,000.' As a result, in June, regulatory policies were implemented, and the coins he held plummeted for three consecutive days. By the time he realized what was happening, his account was left with just over 80,000 yuan. Later, he told me that during that period, seeing the candlestick charts made him nauseous, and he almost deleted all his trading software.
Actually, I have also fallen into the same pit. During the craziest time of the bull market in 2021, my account skyrocketed from 150,000 to 1,100,000. At that time, my teammates advised me to withdraw at least 500,000, but I was dizzy with the thought of 'hitting 2 million.' Before I could increase my position, the LUNA crash triggered a market rout, and my account shrank to 320,000 within a week. That week I didn't sleep a single whole night, staring at the constantly changing loss numbers on my phone screen, truly understanding: Profits in the crypto market are like sand on the beach; the tighter you hold, the faster they leak.
Three 'profit-taking iron rules' help me keep 80% of my profits.
After that crash, I set three strict rules for myself. Over the past two years, relying on these rules, I have been able to securely take profits even in volatile markets.
Tiered profit-taking, rejecting 'all in waiting': Whenever the account profit reaches 50%, immediately withdraw 20% of the profits into stable assets; when profits double, withdraw another 30%; when profits exceed 200%, withdraw 50% directly into offline assets. This way, even if the market reverses later, the cash in hand can ensure that 'the principal is not lost.'
Set a 'psychological stop-loss line,' which is more important than technical stop-losses: Besides the stop-loss settings in trading software, I set a 'emotional critical point' for myself—when daily losses exceed 15% of the total account funds, regardless of how the market behaves afterward, I resolutely do not open new positions for the day. Many people end up being eliminated by the market because they hold on with the mindset of 'stop when breaking even.'
Trade with 'spare money' to fundamentally eliminate greed: I always require myself and my students to only use funds that 'losing it won't affect life' to enter the market. When you invest your living expenses and mortgage money into the market, you will be greedy when you are profitable and panic-sell when you are losing, never able to make rational decisions.
Remember: The crypto market is never short of opportunities; what is lacking is the determination to 'stay alive to wait for opportunities.' Even if you only catch the market twice a year, as long as you can hold onto your profits, you are 10 times better than those who chase highs and cut losses.
If you have also experienced the pain of turning profits into losses, or are struggling with when to take profits, follow me.
