For nine years in the crypto world, four traps have taken the lives of countless people
After nine years, I’ve seen too many people rush in with excitement—and leave drenched in blood.
The ways to lose money are countless, but at the root there are four:
1. An itch you can’t stop
Treat it like a casino: when you’re not in a position, it feels unbearable. You end up making a dozen or more trades a day. Add in fees and slippage, and the principal quietly evaporates by 30%. The more impatient you are, the more you lose.
2. Overconcentrate and go all-in with high leverage
Have 80% of your holdings in, with 20x leverage. When you win, you look glorious; when you lose, you get wiped out. Leverage doesn’t amplify profits—it amplifies how fast you die.
3. Small gains, big losses
Make 5% and you run immediately. Lose 30% and you stubbornly hold on, averaging down. Take-profit too fast, stop-loss too slow—the most deadly mindset. The market isn’t afraid you leave early; it’s afraid you can’t leave at all.
4. Never use stop-loss
Rely purely on “feeling,” betting that the market will behave. One black swan can cut your position in half. Not using a stop-loss is like not wearing a seatbelt. Most of the time you’re fine—until something happens, and then it’s over.
Those who survive treat stop-loss as an iron rule. Even if you get thrown off the train, it’s still better than being liquidated.
Move less, trade with light positions, and always set stop-loss—respect the market. Only when your principal is still there do you have the right to talk about making money.
Follow Mr. Chen. No empty promises—just the truth that helps you stay alive. If you want to learn real things, let’s move forward together.
After nine years, I’ve seen too many people rush in with excitement—and leave drenched in blood.
The ways to lose money are countless, but at the root there are four:
1. An itch you can’t stop
Treat it like a casino: when you’re not in a position, it feels unbearable. You end up making a dozen or more trades a day. Add in fees and slippage, and the principal quietly evaporates by 30%. The more impatient you are, the more you lose.
2. Overconcentrate and go all-in with high leverage
Have 80% of your holdings in, with 20x leverage. When you win, you look glorious; when you lose, you get wiped out. Leverage doesn’t amplify profits—it amplifies how fast you die.
3. Small gains, big losses
Make 5% and you run immediately. Lose 30% and you stubbornly hold on, averaging down. Take-profit too fast, stop-loss too slow—the most deadly mindset. The market isn’t afraid you leave early; it’s afraid you can’t leave at all.
4. Never use stop-loss
Rely purely on “feeling,” betting that the market will behave. One black swan can cut your position in half. Not using a stop-loss is like not wearing a seatbelt. Most of the time you’re fine—until something happens, and then it’s over.
Those who survive treat stop-loss as an iron rule. Even if you get thrown off the train, it’s still better than being liquidated.
Move less, trade with light positions, and always set stop-loss—respect the market. Only when your principal is still there do you have the right to talk about making money.
Follow Mr. Chen. No empty promises—just the truth that helps you stay alive. If you want to learn real things, let’s move forward together.
