Many people only think about making money when trading cryptocurrencies, but forgetting to preserve the principal is equally important. Today, let's talk about how those who truly make money manage to survive.

First, stop-loss. This is the foundation of defense. Even if the stop-loss is large, once set, it must be executed without any negotiation. Many people think "just wait a bit longer, and I'll break even," but in reality, they often end up deeper in the hole the longer they wait. Conversely, in a wrong position, decisively cutting losses is the right decision; poor execution, even with correct judgment, can drain you alive. This is not a technical issue, but a matter of mindset and discipline.

Next is the trap of adding to losing positions. Losing money and then increasing the position to lower the average cost is the most common suicidal operation. If the direction is wrong, adding to the position only doubles the loss, pushing you into the abyss of risk. Of course, if the direction is correct but the entry point is not ideal, moderate adding can be acceptable, but only with a strict methodology to support it—never add just because the market moves.

Then, how to handle consecutive losses. If you lose three trades in one day, stop immediately. This is often the moment when your mindset collapses and judgment becomes unreliable; continuing to trade will only make things worse. Giving yourself time to cool down is more important than anything else.

Position management is even more crucial. Keeping your position within 10% is relatively safe. Sometimes your position is heavy, sometimes light, but fooling yourself with this inconsistency will eventually lead to big losses. Maintaining a consistent and coherent position size ensures you stay within a controllable range, which is key to surviving long-term.

Defense always comes first. Trading is like warfare—survive first, then think about making money.