Over the years of entering the crypto market, I have seen too many beginners come in with passion and leave with losses. I am no exception—my first two margin calls cost me seven figures in tuition. But it is precisely these painful lessons that helped me develop a practical set of rules to protect my principal during market fluctuations.

Many people ask me how my account grew from just $2,000 to its current size. The answer may not sound very glamorous: it’s not about perfectly timing the top, but about learning to "stay alive and make money" rather than "gambling for doubles."

**Stop-loss is the insurance of trading**

In the early days, I experienced the classic "bottom-fishing turns into losing everything"—when prices dip slightly, I always thought it was the last shakeout before a rebound, but I ended up holding on and losing more. It wasn’t until my account shrank by 90% that I realized that a stubborn "not willing to give up" attitude can be deadly in trading. My current strategy is simple and brutal: with 100x leverage, I exit if the price moves 0.5% against me, never allowing a single loss to exceed 2% of my total capital. A moment of pain is better than a lifetime of regret.

**Must force a break after consecutive wrong trades**

Sometimes the market moves unpredictably, and your stop-loss gets hit repeatedly. Five consecutive losing trades can happen. Continuing to trade in this state only worsens the wounds—I used to add to my positions after my mindset broke, only to lose 30% in a day. Now, I set a "consecutive loss limit." Once reached, I immediately close the trading app and do something else, giving myself a 24-hour cooling-off period. The market is always there, but if your principal is gone, it’s useless.

**Visible profits are real profits**

When your account balance reaches the hundred-thousand level, it’s easy to get carried away, thinking you’ve already made enough to risk doubling again. But those numbers on the screen are like a mirage—only the profits withdrawn to your wallet are real money. Regularly cashing out profits not only provides psychological reassurance but also sets clear milestones. Even if the market adjusts later, you won’t give back the gains you’ve already secured.