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Observing the market recently, I’ve noticed an interesting phenomenon: most retail accounts turning green are often not because the market is particularly fierce, but because they carry a "drama queen" mentality—holding on tightly when losing money, and rushing to exit when making a little profit. The final result is quite ironic: profits are so slim that they barely cover transaction fees. Today, I want to share some practical advice on how to survive longer in the crypto world by using counter-human instincts.
Why are retail traders often relegated to the "supporting role" in the market? Essentially, it’s due to several psychological traps.
**Self-deception during losses**
When an account starts to decline, people begin to tell themselves stories. "Maybe it will bounce back?" This thought sounds familiar. Behind it is actually a fear of loss—admitting to a loss feels like slapping oneself, so they choose to play dead. But the crypto market has no warmth; the order book will never reverse just because of your obsession. For example, during a certain cycle, Bitcoin dropped from 69,000 to 50,000, and some held on stubbornly until it was cut in half, missing the golden opportunity to cut losses, turning small losses into big ones.
**False caution during profits**
Conversely, after earning 10%, traders rush to place new orders, fearing "the cooked duck will fly away." On the surface, it’s a cautious approach, but in essence, greed is at play—always wanting to sell at the highest point, but ending up missing the main upward move. Last year, a popular coin surged 300%, but many people took profits at 30% and exited, only to regret it later.
The core idea is: the more you watch the account numbers fluctuate, the easier it is for emotions to manipulate you like a monkey.
**So, what’s the solution? Use mechanisms instead of feelings.**
The method I’ve tried is straightforward—establish two strict rules, execute them mechanically, and give your brain no room for bargaining.
*Profit-taking rhythm*: When the profit reaches 15%, set a trailing stop. If the subsequent profit shrinks to 10%, close half of the position immediately. Let the remaining half continue to run, chasing bigger opportunities. This way, you lock in your principal’s safety while not missing out on further gains.
*Red line for losses*: If the price drops below -5%, cut losses unconditionally. No adding to the position, no fantasizing, no analysis. Just stop. Once this threshold is set, there’s no turning back.
**Why does this method work?**
It does one very important thing—it takes decision-making out of emotion and hands it over to rules. When the market fluctuates, you don’t need to guess or wait for the perfect moment; just execute. It sounds cold, but it’s precisely what retail traders lack.
Human weaknesses are amplified a hundredfold in the crypto market. Greed, fear, luck—each can send your account into ICU. And the market’s rule is to punish these weaknesses. So instead of spending energy trying to overcome human nature, it’s better to bypass it with systems. Data speaks, and execution is the moat.