A trading friend approached me last fall, with only $2,800 left in his account, desperately trying to turn things around. I didn’t give much advice, just threw out a sentence: "First, split the principal into three parts, each controlled within 1,000, and then we can talk about the next steps." Three months later, he sent me a screenshot—his account had grown to over $50,000, and he had never experienced a margin call during the entire process.

This incident has been stuck in my mind and also reminded me of the hard lessons I’ve learned over the years in the crypto space. To be honest, market opportunities are never scarce, but the vast majority of people fall before dawn. Today, I’ll break down these three invincible rules. Whether you can truly understand them depends on whether you have the determination to prioritize "staying alive."

**First Trick: Isolate Principal Risk, Defense Is Always Better Than Offense**

Newcomers love to go all-in, but any market tremor can knock them out easily. Over the years, I’ve developed a strict rule: the principal must be split into three parts, each with its own purpose.

The first part is for short-term trading, with at most two trades per day. Once profit is reached, close immediately and shut down the software. Even glancing at it can tempt greed—the market is excellent at creating a false sense of security.

The second part is reserved for major trend opportunities. If the weekly chart doesn’t show a bullish alignment or volume hasn’t stabilized above previous resistance levels, I simply stay put. If you’re itching to do something, go for a walk or watch a movie—never open the trading window.

The third part is the most critical defensive line, kept for extreme market conditions. For example, when contract positions are close to liquidation, you can add margin to hold on. As long as you’re still at the table, there’s always a chance to turn things around.

It sounds simple, right? But less than 10% can really stick to it. Margin calls are like losing a finger; losing money means being completely eliminated.

**Second Trick: Only Profit from Trends, Completely Abandon Range-Bound Markets**

Most of the time in crypto, the market is just sideways consolidation. But the only thing that can help you recover your losses is a trending market. Over the years, I’d rather stay in cash all year than blindly trade in a directionless market. Many people can’t sit still when the market wobbles, only to get chopped up and lose money repeatedly.

Judging whether there’s a trend is actually simple—look at the larger timeframe, wait for a breakout, and confirm before acting. Small fluctuations are noise; don’t be fooled by them. Trust me, waiting costs much less than rushing in.

**Third Trick: Mindset Management Is More Valuable Than Technical Skills**

The hardest lesson is probably maintaining the right mindset. In crypto, there are many with poor skills, but even more with shattered mentalities. I’ve seen traders with perfect execution blow up their accounts because of one or two losses, then start revenge trading, ending in total failure.

Market cycles are long, and patience is essential. Don’t let your account’s ups and downs control you. Focus on a longer time horizon. Losing one trade isn’t the end of the world; it’s okay if you don’t turn things around in a few months. Staying alive is the top priority; turning things around is just a matter of time.

That friend eventually turned $2,800 into $50,000, simply by following this logic. Discipline, patience, and not being greedy. These old-fashioned words, when truly practiced, will make anyone who does so earn a lot of money.