In the crypto market, most account burnouts do not come from misanalyzing trends, but stem from something even more dangerous: greed.
When prices rise, investors are afraid of missing the opportunity and pour all their capital into the market; when prices fall, they stubbornly try to catch the bottom, continuously increasing their positions with the expectation that it will “bounce back immediately.” The result is either standing at the peak or being swept away at the bottom — the account fluctuates like a roller coaster.
The core of all losses lies in one word: HASTE. Haste wants to recover, wants to double, wants to win quickly, causing principles to be forgotten and risks to be magnified. To avoid repeating this cycle, it is essential to engrave four “lifesaving” trading principles.
Four Ironclad Principles to Lock in Trading Discipline
Never All-in – Maintain Position with 20%-30% of Capital
No matter how good the signal is, you must leave a reserve liquidity. A light position helps maintain a stable mindset, avoiding being swept out when the market fluctuates. When the market wash-out occurs, there is still capital to re-enter at a more certain point.
Whoever maintains position discipline will survive the longest.
Lock in Profits 3%–5% – Small but Consistent Gains Create a Snowball Effect
Small profits accumulated continuously over a year create strength. After each profit-taking phase, withdraw the principal + 50% profit, the remaining part is considered “free capital”. Trading with profits helps to think more comfortably and limits reckless behavior.
Earn a little but safely, better than dreaming a lot and losing everything.
No Loss Stop – Cut Immediately When Down 4%
Cutting small losses will protect the entire portfolio. The market does not care about anyone's emotions or beliefs. It is better to face a few small stop-losses than to be liquidated and lose all assets.
Keeping money means keeping opportunities.
Do Not Bottom-Fish Based on Others' Words – Only Enter Orders When There Is a Breakout Accompanied by Volume
The real bottom is created by large capital flows, not by feelings or random predictions. “Cheap goods” are not necessarily cheap; sometimes they are just liquidity traps. Prioritize certainty over low prices: wait for trend confirmation before acting.
Patience creates a safe entry point; haste creates losses.
Conclusion
By removing the word “Greed”, investors can clearly see the market structure and ride a major wave fully. In a highly volatile market like crypto, it is not necessarily the best analysts who survive, but rather those who maintain the best discipline.
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Liquidation Three Times to Understand: Losses in Crypto Just Because of One Word "Greed"
In the crypto market, most account burnouts do not come from misanalyzing trends, but stem from something even more dangerous: greed. When prices rise, investors are afraid of missing the opportunity and pour all their capital into the market; when prices fall, they stubbornly try to catch the bottom, continuously increasing their positions with the expectation that it will “bounce back immediately.” The result is either standing at the peak or being swept away at the bottom — the account fluctuates like a roller coaster. The core of all losses lies in one word: HASTE. Haste wants to recover, wants to double, wants to win quickly, causing principles to be forgotten and risks to be magnified. To avoid repeating this cycle, it is essential to engrave four “lifesaving” trading principles. Four Ironclad Principles to Lock in Trading Discipline