Discipline is more important than prediction; living is 100 times more important than getting rich quickly.

I still vividly remember that sleepless night in 2023, when the numbers on the screen kept turning green, and my holdings plummeted 40% in 24 hours. This was the third time I watched my account dive, but this time I did everything completely differently—no panic selling, no all-in re-entries, just watching the candlestick chart, following the plan to cut losses in batches, then shutting down the computer and sleeping peacefully.

Three years of navigating the crypto world, from chasing the "hundredfold myth" at the beginning to now earning stable, reliable income, I have understood a hard lesson: in this market, avoiding one pitfall is equivalent to earning an extra amount of money. Today, I want to write down these rules earned through blood and sweat, hoping to help you avoid detours.

**Rule 1: Position management is the prerequisite for survival**

I divide my principal into ten parts, and each time I enter a position, I only allocate at most 10% of the total funds. Sounds cautious, right? But it is precisely this caution that gives me the capital to turn things around in countless extreme market conditions.

Math doesn't lie: losing half of 100,000 leaves you with 50,000, but to double 50,000 back to 100,000 requires a 100% gain—that's exponentially more difficult. If losses exceed 70%, it's basically impossible to recover. So I set a strict rule for myself: the maximum position in a single asset is 20%, and a stop-loss must be set.

Controlling position size is both science and art. During a bull market, everyone thinks they are a master, but only when they cut losses do they realize who can truly swim and who is actually swimming naked. A well-structured position layout can help you stay rational in the face of a crash and prevent panic from leading to foolish decisions.

**Rule 2: Stop-loss is true courage**

"Stop-loss is like cutting off a broken arm," it sounds painful, but if you don't cut it off, you might lose your life. My principle for setting stop-losses is simple—