There is a story of a trader that is worth listening to for every crypto world player.

Marty Schwartz, a name that may be unfamiliar to some, but his record is legendary—10 entries in the U.S. Investment Competition, winning 9 championships, with an average return rate soaring to 210%. Even more astonishing is that the money he earned is almost equal to the total of all other competitors combined.

But do you know? This champion trader lost money for the first ten years, hovering on the brink of bankruptcy. It wasn't until after 1979 that he suddenly had a breakthrough and became a top expert. What was the turning point? He said himself: money management.

**First Iron Rule: If you're wrong, run away, don't tough it out**
"As long as the green mountains remain, one need not fear the lack of firewood" is a guiding principle for him. Once a judgment error occurs, he immediately cuts positions to stop losses, preserving the principal for a chance to turn things around. Many people face liquidation not because their skills are lacking, but because their mindset collapses — unwilling to admit mistakes and stubbornly holding on till the end.

**Rule Two: Don't rush to recover losses after a downturn**
After a significant loss occurs, a person's instinctive reaction is to increase their position in hopes of quickly recovering losses. At this time, Marty's approach is exactly the opposite—he reduces his position. He says that the goal during this phase is not to make money to compensate for losses, but to rebuild confidence in trading. The more anxious you are, the more chaotic it becomes; the more chaotic it is, the more you lose, creating a vicious cycle that no one can escape.

**Third Iron Rule: Actively Brake After Consecutive Wins**
An even more counterintuitive point: Marty had consecutive profits for 12 days, but then he actively reduced his position. Why? Because he found that most losses occur during the "stage of not taking profits after consecutive wins." When people are on a winning streak, they tend to get carried away, feeling invincible, and a single wave of correction can wipe out all their profits.

#美国终止政府关闭 The market is always volatile, but these three principles are applicable in any era. Don't rush to get rich overnight; first, learn to survive.