2026-01-08 19:24:24

I recently encountered a friend whose account status was in terrible shape. The market was volatile, and his principal was disappearing every day, almost breaking his psychological defenses. Desperate to turn things around, he became more and more aggressive, which only led to bigger losses, trapping him in a vicious cycle.

Later, I gave him very straightforward advice: give up the idea of turning things around and just trade according to the rules.

This set of rules may seem simple, but truly executing them requires iron discipline.

**The first principle is to only trade in markets you can understand.** When the direction is unclear, stay in cash and wait. Don’t touch any opportunities that seem tempting. I even told him to stick a note on his monitor: "Don’t trade markets you don’t understand; trade aggressively only when you understand the market." Only after the market shows a clear rhythm should he gradually add positions, rather than going all-in from the start.

**The second is that position size should be driven by profits.** The initial principal is just for trial and error; the real way to grow the account is from the profits you’ve already earned. This way, even if you make a wrong judgment, the losses stay within your manageable range, and your principal remains safe. I know a trader who started with $2,000 and eventually made $56,000—his secret is one word—survival. Every time he makes money, he first locks in half, and the remaining part is used to continue trading.

**The third is to set take-profit and stop-loss levels in advance and execute them when the time comes—don’t wait for a feeling.** Stop-loss is the safeguard to keep the account alive, and take-profit is to secure the profits you’ve made. Market data shows that in just one day, $650 million worth of long positions were liquidated—these are the consequences of not setting stop-losses.

This methodology may seem slow-paced, but it’s stable. After he started following this logic, his account finally showed signs of improvement.

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AltcoinTherapist

· 01-08 19:53

Really, if you don't understand, don't touch it. It's a lifesaver. Not every opportunity requires bottom-fishing; staying alive is the most important. Another brother killed by the all-in mentality. Stop-loss should be set in stone and not changed. Take half of the profit off the table first; the remaining is the principal. I like this logic. A 650 million liquidation is not unfair; there are simply no rules to speak of. Slow is slow, but at least the principal is still there. That's a win.

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MoodFollowsPrice

· 01-08 19:53

That's so profound. The phrase "stay out of the market if you don't understand" really hit me. I was also all-in during that wave, and I still haven't recovered from the bloodbath. That guy who turned 2000U into 56K is really tough. The logic that "being alive is winning" I need to stick on my monitor. Stop-loss, to put it simply, is about leaving yourself a way out. Instead of constantly watching the K-line and trying to make a comeback, it's better to patiently wait for an opportunity you understand.

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LadderToolGuy

· 01-08 19:52

If you don't understand, really don't touch it, this is heartbreaking. I used to be the kind of fool who wanted to do everything I saw, but now I've changed that habit and only then has the account come back to life. All-in is a deadly disease; protecting the principal is the key, and this old guy is right. 6.5 billion liquidation... Damn, these numbers are a bit scary. As expected, those who don't set stop-losses all end up the same. I'm just afraid I can't hold on, getting itchy whenever I see a rise—that's the hardest part. Profit-driven position sizing, bro, I need to remember this set of theories; I feel like I can save a lot on tuition fees. Honestly, making money while alive is a hundred times more important than getting rich overnight, but most people can't realize this.

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JustHereForAirdrops

· 01-08 19:49

Honestly, the phrase "stay out of the market if you don't understand" is really harsh. How many people have died because they insisted on taking a gamble? Use profits to increase your position; this is the way to survive long-term, not going all-in. 6.5 billion in liquidation... this number is frightening. No wonder the big players emphasize stop-loss; it's truly a matter of life and death.

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zkProofInThePudding

· 01-08 19:41

If you don't understand, just stay out of the market. That's so true—many people around me have gone all-in due to FOMO, only to have their accounts wiped out in the end. Discipline is easy to talk about but hard to practice. Very few can truly stick to it. Stop-loss is a life-saving tool. Without it, you'll eventually go back to the Stone Age. Turning $2000 into $56,000 is a real doubling story, but the prerequisite is to stay alive, right? The idea of not touching the principal and only using profits to add positions—I’ve always wanted to try that, but greed always gets in the way. I need to learn that note and stick it on the office monitor—look at it every day to see if I can control my hands. It's easier to do when you understand and act aggressively; it's much simpler than just staying out of the market. Losing $650 million in a margin call sounds painful—that's the story of not setting a stop-loss. It seems the core of this methodology is one word—survive. Living longer is more important than just earning more.

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