That early morning phone call left a deep impression on me — the other person's voice was trembling: "My principal is gone... It only dropped a little, how did it just disappear?"

Looking at the screenshot, the entire position was leveraged 20x with no stop-loss set. This isn't being liquidated; it's actively handing over the sickle oneself.

Having traded for eight years, I've seen too many situations like this. Every time it's regrettable, but upon reflection, the problem is never the market fluctuations themselves, but the trader's neglect of risk. I also use full positions, but in half a year, my funds doubled, relying on three simple yet strict principles.

**First: No single position exceeds 15% of total funds**

With 20,000 dollars, invest no more than 3,000. Even if the judgment is wrong, the loss is just a scratch, leaving enough bullets for the next opportunity. Those who go all-in and get caught in a correction become outsiders and can never re-enter the game.

**Second: Set stop-loss within 2% of the loss limit per trade**

For a 3,000 position, set a 1% stop-loss; close the position if the loss reaches 400 dollars. It sounds conservative, but think about it — even if you are wrong five times, you still retain 90% of your principal. That’s why surviving is much more important than chasing quick money. A dead account has no chance to turn around; a live account can always wait for the next market wave.

**Third: During consolidation, stay put; set a trailing stop-loss when profitable**

Don’t be itchy during sideways trading; only act on a true breakout. Once profitable, immediately set a trailing stop-loss and stop adding to the position. The money you make is truly yours; the numbers on the screen can change at any time.

I have a friend named Ah Jun, who used to blow up his account every month, witnessing how terrifying this cycle can be. Later, he decided to follow these three rules, starting with 3,000 dollars, and after three months, his account grew to 5,800 dollars. The maximum drawdown during the process was only 1.8%. He said himself he’s never felt so secure.

The crypto world is really a game of time — it’s about who can survive longer. With proper position management, you can steadily stand firm in this market. Conversely, if your positions are chaotic, no matter how much capital you have, it can’t withstand one or two mistakes.

In fact, many people's insomnia isn’t caused by market fluctuations but by heavy positions and poorly set stop-losses. Every small dip amplifies psychological panic. My advice is: turn off the trading app and go to sleep. When you wake up and your principal is still there, you’ve already beaten 90% of people.

Making money quickly isn’t important; what matters is not to stumble blindly in the dark. I’ve been through many pitfalls, so I want to share this mindset. Opportunities in the crypto market are always brewing, but the results of reckless trading and rational trading are worlds apart.