Last March, a friend came to me, his voice full of despair: "I lost 200,000 in the contract, I can't pay off my credit card, can you help me?"

Last week, he sent me a screenshot of his account: 580,000 yuan, with a 187% return rate. After paying off his debts, he still had 280,000 yuan left.

To be honest, I never make promises of "guaranteed profits" to people. I only share three rules that I’ve summarized from the blood pits—these are also the key to his turnaround.

**Rule One: Learn to be clear about losses**

I asked him to create a "loss review sheet," where he must record each time he loses money: why did he lose (misreading the technicals / emotional trading / overleveraging), what was the market environment like at the time, and how to improve next time.

A month later, he discovered the problem himself—70% of his losses came from overtrading and stubbornly trying to recover after being caught in a position. Once the root cause was identified, he had a chance to address it properly.

**Rule Two: Use a trading checklist instead of feelings**

Before opening a position, I made him answer five questions: Can the risk-reward ratio reach above 3:1? Has he set a stop-loss? Is the position size no more than 2%? Is he familiar with this coin? Is his physical and mental state normal right now?

He later said: