The most common mistake in the crypto world is going all-in. I achieved account growth with 4500U, relying on three strict rules.
Three months ago, a fan was in trouble with only 4500U left in his account. Instead of choosing aggressive recovery, he calmly split the money into three parts, each 1500U.
**Part One — Short-term Trading** 1500U used for short-term trades, up to two trades per day. Stop-loss is the bottom line; exit when the time comes, no bargaining. This part is for quick reactions, capturing intraday volatility opportunities.
**Part Two — Trend Trading** 1500U dedicated to following trends, focusing on weekly charts. If there's no upward alignment, pretend to be dead — this is called "not chasing the rabbit until the eagle appears." Most profits actually come from this position; patience is valuable.
**Part Three — Insurance Position** 1500U set aside for extreme situations. Liquidation is like amputation, and being completely wiped out is true death. This money ensures you can still play at the table.
Many ask me why I don't invest everything. Going all-in is like pushing all chips forward; one margin call and it's game over. The market is a meat grinder; a moment's carelessness can crush you.
**The actual trading logic is simple:**
When the daily moving average isn't bullish, I stay out of the market and wait. A volume breakout above previous highs, confirmed by a daily close, is my entry signal.
Once I make 30% profit on the principal, I withdraw half to lock in gains. The remaining position has a 10% trailing stop-loss, letting profits run while keeping risks in check.
There are opportunities every day in the market; no need to rush in. Before entering, I write a "life and death statement" — stop-loss at 5% must be executed absolutely; when profit reaches 10%, move the stop-loss to the cost basis.
It's not magic that the account grows from 4500 to 40000; it's because mistakes are fewer. Knowing when to stop, understanding risk control, and executing with discipline — doing the right things repeatedly.
Funds are always limited, but opportunities are infinite. First, engrain these three rules in your mind, then study waves, indicators, and patterns. If the order is reversed, even the best methods are useless.
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.
13 Likes
Reward
13
7
Repost
Share
Comment
0/400
ArbitrageBot
· 5m ago
To be honest, I've been using this three-position strategy for a long time, but executing it is really damn difficult. Most people simply can't do "not chasing the rabbit and not releasing the hawk," they get itchy and go all in at once.
View OriginalReply0
OPsychology
· 2h ago
To be honest, I've been using these three position allocations for a long time, but many people don't understand why I don't go all in.
Stop-loss really can save lives. I used to go all in before, and that time I almost couldn't recover.
The part about safe positions is spot on; the phrase "liquidation is like amputation" is one I need to remember.
View OriginalReply0
LadderToolGuy
· 01-11 10:56
Stop-loss is easy to talk about, but when it comes to actual losses, how many people can really execute it... The key is the mindset, brother.
View OriginalReply0
MetaMaximalist
· 01-11 10:55
ngl the portfolio segmentation framework here is basically just risk stratification wrapped in trading language... which tbh most retail traders won't actually execute because discipline isn't sexy enough for the feeds
Reply0
BearMarketLightning
· 01-11 10:55
To be honest, I really admire this position-splitting approach, but there are only a few people who can truly stick with it.
View OriginalReply0
OfflineNewbie
· 01-11 10:52
Damn, I've heard this story at least ten times, every time it goes from 4,500 to 40,000...
Stop-loss is easy to talk about, but when it really hits a 5% loss, how many people truly dare to follow it?
Dividing into three reliable parts is good, but the issue is mindset. Even dividing into ten parts, if your mentality collapses, it's all pointless.
I like the concept of an insurance position, but the execution difficulty... most people will still end up moving that money in the end.
View OriginalReply0
DarkPoolWatcher
· 01-11 10:28
Honestly, I've been using this three-position setup for a long time, but executing it is especially difficult. Most people fail at the second part and can't wait.
---
Turning 4,500 into 40,000, the key is probably that not being greedy allows you to survive longer.
---
The insurance position part is written brilliantly; liquidation = amputation. Being able to stay alive and continue playing is what makes you a winner.
---
I've broken the 5% stop-loss rule before, and later I realized that those 5% compromises led to the account crashing directly. Now there are no exceptions.
---
The phrase "There are opportunities every day" is the most comforting. In the past, not trading for a day made me feel uneasy; now, holding an empty position feels like making money.
The most common mistake in the crypto world is going all-in. I achieved account growth with 4500U, relying on three strict rules.
Three months ago, a fan was in trouble with only 4500U left in his account. Instead of choosing aggressive recovery, he calmly split the money into three parts, each 1500U.
**Part One — Short-term Trading**
1500U used for short-term trades, up to two trades per day. Stop-loss is the bottom line; exit when the time comes, no bargaining. This part is for quick reactions, capturing intraday volatility opportunities.
**Part Two — Trend Trading**
1500U dedicated to following trends, focusing on weekly charts. If there's no upward alignment, pretend to be dead — this is called "not chasing the rabbit until the eagle appears." Most profits actually come from this position; patience is valuable.
**Part Three — Insurance Position**
1500U set aside for extreme situations. Liquidation is like amputation, and being completely wiped out is true death. This money ensures you can still play at the table.
Many ask me why I don't invest everything. Going all-in is like pushing all chips forward; one margin call and it's game over. The market is a meat grinder; a moment's carelessness can crush you.
**The actual trading logic is simple:**
When the daily moving average isn't bullish, I stay out of the market and wait. A volume breakout above previous highs, confirmed by a daily close, is my entry signal.
Once I make 30% profit on the principal, I withdraw half to lock in gains. The remaining position has a 10% trailing stop-loss, letting profits run while keeping risks in check.
There are opportunities every day in the market; no need to rush in. Before entering, I write a "life and death statement" — stop-loss at 5% must be executed absolutely; when profit reaches 10%, move the stop-loss to the cost basis.
It's not magic that the account grows from 4500 to 40000; it's because mistakes are fewer. Knowing when to stop, understanding risk control, and executing with discipline — doing the right things repeatedly.
Funds are always limited, but opportunities are infinite. First, engrain these three rules in your mind, then study waves, indicators, and patterns. If the order is reversed, even the best methods are useless.