Why can some people accurately predict the ups and downs of the crypto market but still never make money? I've been in this circle for 6 years, and I've seen too many such cases.

Last week, someone was confidently saying in the group chat, "This wave is safe," but by the weekend, looking at their account, it went from nearly breaking even to being deeply trapped; even more ironic, some people clearly timed their bottom perfectly but only made a small profit due to light positions, then turned around and went all-in on small-cap coins, only to end up with zero. Are you also caught in the cycle of "looking right but not making money" and "looking wrong and crying over losses"?

Honestly, the fastest to die are never those who are wrong about the direction. What is the real killer in the crypto world? It’s the reckless traders who don’t manage their positions.

I’ve seen retail traders curse in the community at 3 a.m., holding full positions in a small coin, which drops 80% in one day; I’ve also seen friends in a bull market shouting "missed out" every day, clutching only a tiny position, helplessly watching mainstream coins double, only able to tap their legs on the side. And some play crypto with stock trading mindset, holding heavy positions to withstand volatility, only to be brutally taught a lesson by the market.

This isn’t a matter of ability; ultimately, it’s about not understanding the most basic survival rule in this circle: there is no myth of guaranteed win, only survivors who win. And position management is the only protective shield that allows you to survive the bull-bear cycles.

Based on 6 years of practical experience, I’ve summarized 3 ironclad rules of position management—newcomers, remember these, and you can avoid 80% of the detours.

First, the principal is always the boss; profits are just the little brother. This is the easiest point to overlook and also the deadliest. No matter how confident you are in a particular asset, your maximum loss per trade must be controlled within 2%-4% of your principal. What’s the benefit? Even if you lose 10 times in a row, your principal will only shrink by less than half at most, and you still have a chance to turn it around.