There is only one barrier between not cutting losses and waiting for opportunities, and this barrier determines whether you end up broke or make money.

Earlier this year, a trader came to consult me. In the previous market cycle, he lost $800,000, leaving his account with only $20,000. He asked if he could turn things around in this wave of the market. My answer was very straightforward: first, put away the idea of "breaking even."

The easiest trap to fall into after a big loss is rushing to recover, which often results in even greater losses. So I designed a safe trading plan for him, and after 28 days, his account surpassed $800,000.

This is not some black technology trading method; it’s purely a victory of execution and discipline.

**How to allocate positions to avoid going all-in at once**

My suggestion is to divide the account into five parts, controlling each trade at 4,000U. Why five parts? This is based on risk calculation. The crypto market is highly volatile; on January 3, 2026, over 110,000 traders were liquidated. Many people lost everything because they risked their entire net worth on a single trade, and one mistake knocked them out.

Truly experienced traders know that smart operation is to enter only when conditions are favorable, not blindly follow the trend or go all-in and out.

**Stop-loss must have a bottom line: exit at a floating loss of 3.8%**

The stop-loss rule is also very important. Set a rule to exit immediately if floating losses reach 3.8%, and don’t be soft-hearted. This ratio is a threshold calculated repeatedly based on market volatility.