These years trading cryptocurrencies, I have survived the sleepless nights of losses and now I can earn a stable monthly income of one million. To be honest, it’s not about talent or luck, but a set of seemingly stupid methods — but they are effective.

**Capital is always the first lesson**

Any perfect strategy is doomed once a margin call happens. So the first thing is to learn how to preserve your capital.

My approach is simple: take out 100,000 yuan as principal, use only 10,000-20,000 yuan per trade to try, and keep the entire position within 20%. This may sound like "wasting" capital, but in reality, it’s using small money to buy the right to make mistakes. The real killer is full-position gambling — when a margin call hits, all analysis and techniques are useless.

Stop-loss must be executed unconditionally. When a single loss reaches 2%, exit immediately. Don’t think about holding on for a turnaround — that’s a suicidal illusion. Beginners should never use high leverage; even experienced traders should not exceed 10x if they do. Just this discipline alone can help you avoid 90% of margin call traps.

**High certainty is the source of money**

Making money in the market is not about trading frequency, but about the certainty of each trade.

Choose a direction and stick to it, whether bullish or bearish, but don’t waver back and forth during this period. Set a 3% stop-loss and a 5% take-profit before entering the trade, then let the rules speak for themselves and don’t let emotions interfere.

Regarding trading frequency, the first 1-2 trades of the day are usually the highest quality because you have the energy to analyze. More than 3 trades often means you are "contributing" to the exchange and the market — transaction fees quietly eat away at your principal.

**The three most deadly traps**

Adding to a losing position is the fastest way to bankruptcy. Unrealized gains do not equal profit; most margin calls stem from the deadly illusion of "I think it can still go up." Frequent trading fees may seem insignificant, but over time they become a huge hidden loss.

It’s easy to say, but execution requires mental preparation. But if you truly stick to this system, time will reward you.