Traders often say that after entering a position, watching the price fluctuate makes them nervous. How can you hold onto your trades and also catch the trend?

My idea is actually very simple: first figure out the maximum loss you can tolerate, then think about how to make money. This is the foundation of all trading decisions.

Here are the risk management rules that have helped me sleep well over the years:

**Rule 1: Set a Bottom Line First**

Suppose you have a capital of 200,000 USDT and can accept a maximum single-loss of 20,000 USDT. Calculate your position size based on this loss limit. Once this bottom line is set, it becomes your safety net—stick to it, and you'll always have ammunition.

**Rule 2: Start Small, Then Go Big**

Even if calculations show you can open a 20% position, start with 10%. If it goes well, use unrealized profits to add more; if not, your losses are limited. Staying alive is more important than anything. Guessing right once is far less valuable than surviving longer.

**Rule 3: Use Profits to Expand**

Adding to your position with unrealized gains is fine, but the key is to move your stop-loss above your cost basis, using the profits to aim for bigger gains. At worst, you just give back some profits; your principal remains protected.

**Rule 4: Take Profit When Ahead, Reduce When Behind**

When your account hits a new high, you can moderately add to your position. But if the drawdown exceeds 5%, reduce your position immediately. Adding more during a loss? That path leads to liquidation.

**Rule 5: Lock in Profits**

When your capital doubles, at least withdraw half of the profits to your spot wallet. The numbers on the trading interface are virtual; the real money in your wallet is what truly belongs to you.

**Rule 6: Make It a Habit**

Don’t predict; execute. Embed this process into your mind until it becomes a conditioned reflex. When your emotions are naturally stable, your account curve will gradually trend upward.

In trading, the competition is never about who makes the most profit in a single trade, but who survives longer in the market. Slow is fast. Disciplined small retail traders often outlast larger traders without a plan and end up laughing last.