On the road of crypto trading, I went from losing sleep over losses to now steadily earning a million per month, relying not on talent or luck, but on a “so simple it’s stupid” method—simple, executable, and effective.

1. Capital Iron Rule: To make money, protect your capital first
No matter how good your strategy is, it’s useless if you can’t survive a single liquidation.
• Position splitting mindset: With a $100,000 principal, only use $10,000 per trial trade, and total positions should not exceed 20%.
• Fixed stop-loss: Exit immediately if a single trade loses 2%—no hesitation, no holding.
• No heavy leverage: Beginners should avoid leverage entirely, and even experienced traders should keep position leverage under 10%. Just following this rule helps you avoid most liquidations.

2. Core Strategy: Less is more
Profits come not from “doing more,” but from “doing it right.”
• One-way trading: Only go long or only go short, don’t flip back and forth—your success rate will improve significantly.
• Mechanical discipline: Set a 3% stop-loss and 5% take-profit in advance—much more reliable than making decisions on the spot.
• Control trading frequency: The first 1-2 trades each day are of the highest quality; more than 3 is basically giving money away.

3. Danger Zones: 90% of beginners fall into these traps
• Never average down in a losing trade: Every time you add to a losing position, you’re one step closer to liquidation.
• Reduce meaningless trades: Fees alone can eat up most of your profits.
• Profits aren’t profits until they’re realized: Most liquidations come from thinking “it should go up a bit more.”

Case Comparison: Same $100,000, wildly different outcomes
Wrong approach:
All-in + high leverage → averaging down as price drops → holding until liquidation.
Right approach:
Use only $20,000 as base position → 3% stop-loss / 5% take-profit → only two high-quality trades per week.
Result: Monthly returns can stabilize at 8%, with annualized compound returns exceeding 150%.

Pro’s mantra: Remember these six
Do: use spare money, follow discipline, trade one direction.
Don’t: go all-in, hold losing trades, bet both sides.

Final reminder: Contracts are not a casino.
Those who gamble their living expenses for a shot at the future all end up wiped out.
Only by protecting your principal and surviving long enough do you earn the right to talk about “big money” in crypto.