I was awakened by a fan's private message early in the morning, and the core question hit me hard: "With the same market outlook, why did you lose 28% while I made 42%?"



To put it simply, our difference lies in one point — he keeps holding the principal to gamble, while I have long protected the principal and only use profits to push forward.

In these 8 years in the crypto world, I’ve had my share of falls, with 3 liquidation events, losing from 200,000 down to the bottom, and only then did I gradually develop a relatively stable methodology — the "profit snowball" approach.

**The core principle is simple: the principal is fundamental, 5% small trial trades, with a stop loss at 0.8%.** Without clear signals, stay in cash and observe. This way, you can beat 80% of retail traders — they lose because of frequent trading.

**After making a profit, split it into two parts:** half immediately locks in gains and takes profits, the other half is used as ammunition for attack. The benefit of this is that even if the market moves against you later, your principal and initial profits are safe.

**When floating profits exceed the principal amount, switch to insurance mode.** Use 10% of floating profits for hedging operations, and set the stop loss at 1.5 times the original. This way, during a pullback, you can withstand it, and profits continue to grow.

**A quick way to judge is by looking at the 3-minute K-line.** Breakouts with increased volume mean go all-in on profits; breakouts with decreased volume mean clear all positions with one click. Don’t get emotionally attached to the market.

**Whenever a retracement reaches 15%, lock in half of the profits,** allowing the remaining part to run freely, while completely shutting down greed.

**The last key habit is: withdraw daily profits, leaving only the principal plus 10% of liquid funds in the account.** This effectively prevents over-leverage and over-concentration.

Market opportunities are never lacking; what’s truly scarce is disciplined execution. Use profits to explore opportunities, let the principal sleep peacefully — that’s the secret to smiling at the close of each day.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 3
  • Repost
  • Share
Comment
0/400
BlockchainRetirementHomevip
· 13h ago
Honestly, I've long understood the logic of capital protection, but I just can't execute it. I still tend to act impulsively and trade frequently. Selling profits to gamble does feel great, but when a drawdown happens, I regret not setting a stop-loss... This guy has blown up three times in 8 years but still managed to develop a methodology. He's really tough, much stronger than us armchair strategists. The trick of withdrawing profits daily is brilliant; it directly eliminates the temptation to overtrade. I need to learn this.
View OriginalReply0
AllInAlicevip
· 13h ago
To be honest, this set of theories sounds comfortable, but very few people actually implement them. I only tried once, and I still couldn't change my habit of holding hands. However, that habit of taking profits daily is truly excellent, directly breaking my idea of holding a heavy position.
View OriginalReply0
GateUser-a5fa8bd0vip
· 13h ago
Principal sleeps, profits surf, this set of logic is indeed ruthless. After reviewing for 8 years and experiencing 3 margin calls, I finally understood this principle, which is truly a lesson learned the hard way. But to be honest, I still feel a bit hesitant about going all-in on 3-minute K-line trades, always worried about getting trapped. Withdrawing profits daily is a brilliant move, directly cutting off the desire to overtrade. No matter how eloquently it's said, it's all hindsight. The real test is whether I can stick to discipline when the next market comes.
View OriginalReply0
  • Pin

Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)