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Having navigated the crypto world for these years, I haven't become a big shot, but I have gained a thorough understanding of the pain of liquidation and the lessons of pitfalls.
Last year, a young brother came to me with $3,000, hoping to recover his previous losses. I didn't talk about moving averages or MACD; I simply shared three lessons I learned from crawling out of the ruins. He followed my advice for three months, and his account grew to $50,000, never once getting liquidated.
**Step 1: Divide your capital into three parts; protecting your life is the top priority.**
This is a blood-and-tears lesson I learned after a full account liquidation and sleepless nights. Use $1,000 for short-term trades, with a maximum of two trades per day. Once done, close the software—staring even a second longer can tempt greed. Use another $1,000 to wait for trends: if the weekly chart hasn't formed a clear top or hasn't broken through key levels with volume, then wait patiently. Chasing in a volatile market is just giving away money. The last $1,000 is stored in a cold wallet—this is your life-saving money. When the account is about to be liquidated, use it to top up your position. Keeping some principal gives you a chance to recover.
**Step 2: Only follow the trend, be a turtle the rest of the time.**
In my early years, I lost nine out of ten trades in choppy markets. Only later did I understand three entry signals: if the daily moving averages aren’t aligned, stay out and wait; only try small positions when volume breaks previous highs and the daily chart stabilizes; when profits reach 30%, take half off quickly, and set a trailing stop at 10% of the remaining position. Lock in profits—that's real earning.
**Step 3: Control your emotions and execute mechanically.**
Before entering a trade, write a plan: set a stop-loss at 3%, and close the position when hit; when profit reaches 10%, immediately move the stop-loss to break-even; shut down your computer at midnight—no matter how tempting the K-line is. Emotional chaos leads to mistakes; only mechanical execution can help you go far.
These are my experiences over the years, shared with friends who are still lost.