Last year was the darkest year for me in the crypto world, with a loss of 1 million in my account. During that time, I was completely broken. I smashed my phone, uninstalled trading apps, and locked myself in my room for two months. I truly felt that this might be the end of my life.

But there was a stronger desire not to give up than anything else. The more desperate I was, the more I refused to accept defeat.

At the beginning of this year, I took stock and found only $3,400 left in my account. At that moment, I really had only two choices: to completely exit the market or to start from zero. I chose the latter.

During that period, I reflected on myself while managing positions with some followers—starting from $3,400, gradually rolling up to $120,000, and then climbing higher... In the end, not only did I recover the 1 million loss, but I also made an additional profit of over $200,000.

Through this process, I developed three ironclad trading rules. All of these were earned with real money, and most importantly—they must be strictly followed.

**First Rule: Always leave room in your position**

This was the most valuable lesson I learned from losing 1 million. The maximum single position size should be 40%. The remaining 60% of funds I call the "trump card," and I won't touch it no matter how tempting the opportunity. If a trade hits a 15% stop-loss, no matter how unwilling I feel, I must cut the position.

Why? Because as long as I still have ammunition, there’s always a chance to turn things around. Many people get stuck in a vicious cycle of no stop-loss, getting caught in a position, and adding more. When the market hits its bottom, having funds is more important than anything else. That’s when the opportunities are the most valuable.

**Second Rule: Follow the trend, don’t try to perfectly catch the bottom or top**

My biggest mistake before was always trying to bottom-fish. I’d jump in when I thought the decline was almost over, only to get repeatedly slapped in the face. Later, I realized that instead of betting on the bottom, it’s better to follow the trend.

When the trend is upward, go long; when it’s downward, go short. It sounds simple, but sticking to it can be surprisingly efficient. Sometimes, within ten minutes, the trend becomes clear, and I can make thousands of dollars. Compared to blindly holding on and betting against the market, following the trend offers more stable returns and higher win rates.

**Third Rule: Manage profits in layers**

This is the key to capital preservation. After each profit, I only use 30% of the gains to increase my next position, while withdrawing the remaining 70% of the profit. Both the principal and the profits are protected, so even if the market reverses later, I won’t lose too much.

Many people fall into a cycle of making some money, then losing it all, and ending up empty-handed. My approach is to lock in some gains each round, reducing psychological pressure and ensuring that I end up in a profitable state.

These three rules are my real trading insights. There’s no mysticism involved—just risk management, trend judgment, and profit protection. The crypto world has many stories: some people get rich overnight, others go broke instantly. The difference often comes down to these three principles.