I've seen too many people who flex their muscles before the opening and are speechless after the close.



It's not a matter of IQ, nor is it that the market is particularly bizarre. Honestly, most people treat contracts as a "bet on big or small" gamble—cheering when it rises, losing their minds when it falls, and finally blaming a bunch of excuses when they get liquidated: bad luck, market makers poking holes, or being cut by news.

But honestly, liquidation has nothing to do with luck.

It's like running a red light—nothing happens the first time, nothing the second time, but crashing on the third—it's not bad luck this time, but because the previous two times laid the trap.

**1. Those days when being hit by tuition woke me up**

When I first entered the crypto world, I was obsessed with the idea of "getting rich quickly with high leverage." Once, I shorted a small coin, and my unrealized profit rose to 30%. Feeling great, I decided to add more and max out the leverage. As a result, a single counter-move hit my stop-loss, and half of my principal evaporated instantly.

Back then, I refused to accept defeat and kept thinking about turning things around with the next trade. The more I wanted to recover, the more I messed up. Staying up all night watching the charts until dawn, my eyes blurred, and my account kept shrinking day by day.

Until one day, I met a seasoned trader. This guy started with 2000 USDT and, in two years, grew it to 500,000. I asked him for his secret. He said something that instantly woke me up:

"Your liquidation isn't because you guessed the direction wrong, but because you always want to recover and double your money—you're not trading, you're gambling with the market."

That sentence was like a slap in the face, leaving me stunned.

**2. The underlying logic of rolling positions: profits are built little by little**

Many people think rolling positions means "adding on floating profits," but when a correction comes, they wipe out all their gains and hurt their principal. True rolling is actually a complete risk management system, not just a simple game of adding positions.

There are three core principles:

First, the principal is the bottom line, not gambling capital. My current rule is: only use 3% of total funds for a single position. If losses reach 2%, close out and never hold on stubbornly. Sounds conservative? But this is the secret to longevity. Referencing Buffett's theory—never lose money—and the second rule is never forget the first. This applies to contracts as well.

Second, timing profit-taking is crucial. Some people aim to take profits at 10%, then at 20%, then double again and aim for 5 times the original. In the end, one wrong move brings everything back to square one. My approach is: once a position gains more than 20%, I close half of it and take out the principal. The remaining position is used to chase further gains. This way, even if the market moves against me later, the principal is protected.

Third, emotional management is more valuable than technical analysis. During market fluctuations, someone who can control their emotions often survives longer than someone who just predicts accurately. I now only check the market three times a week—not out of laziness, but because frequent monitoring can lead to emotional decision-making.

**3. What I learned from going from 0 to 500,000 in two years**

That seasoned trader later shared his complete methodology with me. To sum it up in one sentence: don't pursue maximum gains on a single trade, pursue stable compound growth.

His account growth curve wasn't a rocket shot followed by a complete crash, but a steady upward parabola. Some months might only earn 5%, others 20%, but the key is—he never suffered a catastrophic loss. Growing from 2000 to 500,000 in two years was achieved by this strategy of "4-5% monthly compound interest, sticking to it for 24 months."

Looking back at my previous operations—high leverage, frequent position increases, stubbornly holding losses—that's not trading; that's gambling your principal against the market. The market always outlives individuals—that's a historical fact.

So now, when I see beginners asking "how to make quick huge profits," I have only one answer: forget about huge profits. Learning to survive is the first lesson. Keep your principal safe, and compound growth will take care of itself.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 5
  • Repost
  • Share
Comment
0/400
AirdropAutomatonvip
· 16h ago
The words sound nice, but how many people can truly stick to the 3% ratio? It's not like the account size doesn't start to expand once it gets big.
View OriginalReply0
StakeOrRegretvip
· 16h ago
The truth is the truth, but most people still have to pay tuition fees to understand after hearing it... Compared to reading articles, you still need to personally blow your position once or twice to adjust your mindset.
View OriginalReply0
MEVSandwichvip
· 16h ago
Really, most people have a gambler's mentality, only feeling comfortable when they go all-in in one shot.
View OriginalReply0
NFTragedyvip
· 16h ago
To be honest, that line "You're gambling with the market" really hits hard and touches the heart.
View OriginalReply0
governance_ghostvip
· 16h ago
Honestly, bragging before the open and admitting defeat after the open—I've seen this script too many times, haha.
View OriginalReply0
  • Pin

Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)