I’ve been in this circle since 2017, witnessed the crazy boom of the ICO era, and survived a long bear market alone. I still remember the time when fifty thousand U.S. dollars were gone in one night, leaving only three thousand in my account. That feeling was like being drained of blood. But it’s precisely because I’ve suffered such losses that I’ve figured out three iron rules for survival.

**Rule 1: Principal is your oxygen mask**

During that liquidation, my mistake was the most basic—gambling mentality, always wanting to turn a big win in one shot. The result? The more I tried to turn things around, the deeper I sank. Later, I set a strict rule for myself: no single position should exceed 5% of total funds. When it hits the stop-loss point, I cut it without mercy, just like cutting off an infected arm to save the life.

Why stick to 5%? Because black swan events are common in crypto. How did LUNA collapse? How did FTX explode? Even BTC can drop 20% in a day. If your position size is not controlled, one mistake can wipe you out instantly.

My approach is simple but effective: before opening a trade, set the stop-loss first. Suppose your capital is 100,000 U, and you invest at most 5,000 U per trade, with a stop-loss at -10% (that’s a 500-dollar loss). Even if you lose 10 times in a row, you can still keep half of your principal and continue playing.

In plain terms: opportunities are everywhere in the market, but what’s missing are those who survive until the end. If your principal is gone, even the best opportunities won’t matter to you.

**Rule 2: Profits should burn like a wildfire until they extinguish naturally**

Many traders have a bad habit—taking profits quickly and rushing to exit, but holding on tightly when losing. That’s the ghostly trick of human nature. My logic is the opposite: cut losses immediately at 2%, but when making profits, don’t rush to close—let the profits run.

Why set the stop-loss at 2%? I’ve analyzed data myself, and most liquidations happen when small losses turn into big ones. A 2% stop-loss is like a fire hydrant—extinguish the small fire early.

For profits, I use the “trailing stop” technique. When a position gains 5%, I move the stop-loss to near the cost price, protecting the profit from slipping away while letting the position run. If the market surges further to 10%, 20%, I move the stop-loss up accordingly, holding onto the profit tightly. The benefit of this approach is that, in the worst case, you break even; in the best case, you catch a big move.

**Rule 3: Trading plan is not a suggestion, it’s an order**

This rule has saved me countless times. Before each trade, I ask myself three questions: Why am I entering? When should I exit? Where is the risk? Only when I’ve thought through all three do I press the confirm button.

Many times, losing money isn’t due to bad analysis but lack of execution. You like a coin, enter, but don’t have a stop-loss plan; or make a small profit and start adding positions recklessly, only to see a reversal wipe everything out.

Now, I habitually write a small note before entering: record entry price, target price, stop-loss price, then execute mechanically according to plan. Emotions are for gatherings with friends; in trading, you need cold-blooded discipline.

**In summary**

There are no shortages of geniuses in this circle, only those who survive long enough. The secret to longevity is: protect your principal, safeguard profits, and follow your plan. Everything else is nonsense.