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Staring at the screen at two in the morning, the glaring red of my account balance left me completely numb. With a principal of 1200 yuan, I ended up losing it all to 183 yuan due to my reckless operations. My finger hovered over the "deposit" button, and suddenly I jolted—throwing more money in would just be giving it away to the market, right?
That night I shut down the software and transferred the remaining 183 to the cold wallet. I cursed myself in front of the blacked-out screen for a full ten minutes: either admit defeat and uninstall the APP now, or treat this account like an ICU ward, first find a way to survive, and stop always thinking about getting rich.
I have been in this industry for six years, and I have seen as many stories of getting rich as I have seen disastrous liquidation cases. It wasn't until I got badly hurt myself that I understood one principle: trading is never as simple as betting on highs and lows; the core is how to keep the account alive longer.
The following rules are survival experiences that I have bought with real money. With these, I climbed from 183 to six figures in eight months. Those who understand these will at least be able to avoid three years of detours.
**Rule 1: Stop-loss is like putting in a pacemaker; don't leave room for a lucky mentality.**
I used to comfort myself: "Just wait a little longer, maybe it will bounce back" "At worst, I can just hold on until I break even." As a result, there was one time when I held on and directly lost half of my position - it was then that I realized that a stop loss is not a way to cut losses and admit defeat, but a necessity to extend the life of the account.
I set a strict rule for myself: the maximum loss per trade is controlled within 1.5%. With a principal of 183, the maximum loss per trade is 2.7. Even if I make seven consecutive wrong trades, the total drawdown would only be 10.5%, and the probability of recovering in the eighth trade is still quite high. But if I hold onto a trade once, it might directly send the account away.
Now I'm not betting on the direction anymore, I'm betting on how long I can survive. The market trend doesn't seem right?