Many people in the crypto world die in the same pit—greed.

Last winter, I received a call for help from an old classmate. His account had only $2,700 left, and he asked if I could help him turn things around. I didn't mention any advanced indicators, but instead shared three rules of discipline that I only truly understood after three margin calls and countless sleepless nights.

Three months later, his account grew to $51,400, with zero margin calls during that period.

Today, I’m writing down this logic, hoping to save some people.

**Funds should be divided into three parts; saving your life is always the top priority**

How to split $2,700? Divide into three parts of $900 each, and never touch this baseline.

The first part is for short-term trades. Make at most two trades per day, and close the software after placing orders. Even a second of greed can be costly. Use this to catch intraday momentum, but never let it eat into your principal.

The second part is for trend-following. If the weekly chart isn’t showing a bullish arrangement, pretend to be dead. Don’t move without volume breaking through previous highs. Many people get cut nine times in consolidation because they misuse this part. Range markets are a battle of attrition—reckless moves are just giving away your money.

The third part is for life-saving. Only use this when the market is extreme—like a spike, margin calls, or urgent liquidation—to top up. This isn’t greed; it’s survival. Protect your principal, and the bull market will have a chance to follow. Margin calls are like losing a finger; losing all your capital is beheading.

**Only eat the middle part of the trend; sleep during other times**

Having been cut nine times in range markets, I’ve learned my lesson.

The trading logic is simple—if the daily moving averages aren’t aligned bullishly, clear your positions immediately. Don’t fear “missing out,” because you simply can’t catch a trendless market.

When to enter? When volume breaks through previous highs and the daily chart stabilizes, use one-third of the first part’s position to enter. Not full force, just a small step.

When to exit? When profits reach 30% of your account, take half of the profits immediately. Set a trailing stop at 10% of the remaining position, letting profits run.

The market is like a fish—its middle is the tastiest part. The head (start) is too risky, and the tail (end) is for others to boast about. Just eat your fill and leave.

**Emotions must be locked by the machine; let the trading system make decisions for you**

Write your plan before trading:

- If loss reaches 3%, close positions automatically. Exit on time, don’t keep telling yourself “just a little longer.” This stop-loss is your life vest.

- When floating profits reach 10%, move your stop-loss to your cost price. From that moment on, all subsequent gains are pure profit. This greatly reduces psychological pressure.

- Shut down your trading app at midnight. If you can’t sleep, uninstall it. The longer you stare at the screen, the more chaotic your mind becomes. A restless mind can’t make rational decisions. Someone watching the market until 3 a.m. often makes the worst trades at 4 a.m.

**Why be so strict?**

Because the market’s cruelty exceeds imagination. There’s always someone smarter than you, always someone reacting faster. The only way to win is to be disciplined enough.

This system may sound simple, but I paid the price of three margin calls and two sleepless nights to develop it. Some lessons can only be learned through blood.

Many people like to study wave theory, indicators, or mystical methods. But 80% of failures come from poor risk management, not from analysis skills. Once your capital is gone, even the most advanced analysis can’t save you.

The market is always there. The next bull run won’t wait for you just because you margin called this year. But if you preserve your capital this year, you’ll have enough ammunition to participate in the next cycle.

I don’t sell courses, I don’t take commissions—I just want to share my years of blood, sweat, and tears as an old trader. If I can help someone avoid a detour, all those sleepless nights weren’t in vain.

Wishing everyone to bring their capital back safely. The rest is up to time.