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The crypto market is like a martial arts world; the speed at which money comes in can be so fast that you can't react, and the ways to lose money are just as fierce.
I personally went from playing with 5,000 USD to 200,000 USD, but to be honest, it's not just luck. What truly supports me to this day are five "ironclad rules" repeatedly validated in contract trading.
**Rule 1: Stop-loss must be ruthless.**
Don’t negotiate with yourself, and don’t expect any miracle to recover your losses. The market will never give you face. Once you've set a stop-loss level, execute it immediately. Small losses are to preserve capital, so you have the chance to turn things around.
**Rule 2: Stop after consecutive mistakes.**
Sometimes the market is crazy, and if you don’t understand it, don’t force it. My approach is that once I make five consecutive wrong trades, I immediately close the trading app, go out for some fresh air, and clear my mind for the night. Many times, re-entering the market the next day can turn things around.
**Rule 3: Realize profits.**
The numbers in your account are virtual; if you don’t withdraw them, it’s as if you haven't earned anything. My rule is simple: every time I make a profit of 5,000 USD, I withdraw at least 3,000 USD. Real gains must be pocketed.
**Rule 4: Follow the trend.**
When the market is trending up or down, high leverage is like printing money; but once it enters a choppy market, it becomes a money shredder. When the market is unpredictable, the smartest choice is to stay on the sidelines and wait until the trend is clear before going all in.
**Rule 5: Control your position size.**
Betting everything is something only gamblers do. I only use 10% of my total capital to test the waters each time. The benefit is that no matter how much I lose, I can't lose everything, and I stay calmer during operations.
These five rules are not some profound theories; they are practical principles summarized from countless lessons learned from account statements.