I've heard plenty of stories about retail investors losing money in the crypto space: some stare at the charts overnight and get liquidated with a sudden spike; others believe in rumors and go all-in, ending up with nothing. Why do retail investors always suffer heavy losses?

I started trading in 2017, and my account curve is still relatively stable—maximum drawdown has never exceeded 8%, and the initial 5,000 USD capital has grown to seven figures. This isn't because I'm particularly smart, but because I use the right methods. Over the years, I've experienced several bull and bear cycles. I've seen people mortgage their houses to fill gaps, and others simply uninstall the software and never touch it again. Yet, I’ve consistently taken profits over 30 times, with the highest weekly withdrawal reaching 150,000 USD. The exchange's transaction history can be verified.

The core principles are actually just three, simple enough for beginners to use:

**1. Take Profit and Stop Loss are the Foundation of Survival**

Every trade must have a stop loss and take profit. When profits reach 10% of the principal, immediately withdraw half to a cold wallet to lock in gains, and let the other half continue to compound. This way, even in extreme market conditions, you only lose some unrealized gains, and the principal remains safe. It’s like installing a protective shield on your entire account.

**2. Dance with Multiple Timeframes, Treat Volatility as Food**

Use the daily chart to determine the trend, the 4-hour chart to find ranges, and the 15-minute chart to pinpoint entry points. Often, I open two positions on the same coin: one following the trend breakout with a stop loss near a key daily level; another in overbought or oversold zones on the 4-hour chart, placing a counter-position. Last year, during a single-day spike of 90% on a certain coin, I earned 40% that day—it's not about guessing the rise or fall, but turning volatility into opportunity.

**3. Money Management is Always More Important Than Chart Analysis**

Divide your account into 10 parts; only use 1 part for each position, and never hold more than 3 positions at once. After losing two trades in a row, stop and rest—don’t gamble by adding more. When your account doubles, withdraw 20% to buy stable assets to secure profits. My own win rate isn't very high—around 35%—but I maintain a risk-reward ratio of 5:1. As long as the mathematical expectation is positive, I have confidence regardless of market direction.

I don’t boast empty words; these are real trading operations. If you want to avoid detours and make steady profits in the crypto space, instead of blindly guessing on your own, it’s better to follow a reliable logic.