In the middle of the night, I was awakened by a call from my cousin in Chengdu. His voice was choked with emotion as he recounted the tragic experience of his ETH long position account being wiped out. A mere 4% market correction led to the complete collapse of his strategy, which involved using 6x leverage on his entire holdings.

This scene brings back painful memories from last year. At that time, I also believed in the idea that 'high leverage is the only way to get rich quickly,' and as a result, three months of hard work evaporated in half an hour. The feeling of despair is still hard to forget.

In hindsight, I deeply realize that reckless full-margin leveraged trading is like speeding on the edge of a cliff without guardrails; no matter how good the road conditions are, a moment's carelessness could lead to a plunge into the abyss.

The 6x leverage used by my cousin means that ETH only needs to reverse by 16.7% to trigger a liquidation. In the highly volatile cryptocurrency market, it is not uncommon for ETH to fluctuate more than 12% in a single day, and a 4% pullback is quite common.

After a year of exploration, I have summarized three core principles of 'stable profit' that not only preserved the principal but also achieved a 75% increase in the account value:

1. Single transaction capital control: Only 8% of the total capital is used for each transaction. This way, even in the worst-case scenario, the impact on the overall capital remains within a controllable range.

2. Strict Stop-Loss Strategy: Keep the single loss strictly within 1.2%. This helps to avoid deep entrapment and maintain the liquidity of the account.

3. Wise entry timing: Stay on the sidelines when the market is unclear. Only consider entering when the weekly chart breaks through resistance and trading volume significantly increases.

These guidelines not only apply to me but have also helped other traders achieve significant results. A fan who used to frequently get liquidated increased their account from 2800U to 4900U in just four months after adopting these principles.

In the face of my cousin's dilemma, I imparted these experiences to him. I emphasized that leverage itself is not a monstrous beast; the real danger lies in full position trading without risk control.

In the ever-changing cryptocurrency market, true trading wisdom lies not in gambling on luck, but in building a protective wall for capital through rigorous risk control strategies. Only with a sense of awe and strict adherence to trading discipline can we steadily move forward in this market full of opportunities and challenges, achieving long-term profitability.