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In cryptocurrency trading, the amount of profit often isn't determined by how crazy the market is, but by whether you can stay rational in the face of greed. These five iron laws, summarized over the years, are real lessons learned from practical experience.
**Iron Law 1: Stop-loss execution, delay is death**
Many people make the same mistake—when a position shows a loss, they hold onto hope, thinking "just endure it and I'll break even." As a result, the market doesn't show mercy, and a wave of行情 directly wipes out their position. Stop-loss is never about admitting defeat; it's about protecting your principal and preparing for the next opportunity.
In practice, you should do this: set your stop-loss points before opening a position, controlling each loss within 1%-2% of your total funds. During volatile market swings, especially trust fixed stop-losses, and don't be fooled by short-term rebounds into manually canceling them. Losing small amounts is normal trading cost, but if your principal is gone, the game is over.
**Iron Law 2: Three consecutive losses, force to stop**
People's states fluctuate, and continuous stop-losses during chaotic markets are a warning from the market—your judgment needs a break. Many professional traders have a win rate of around 60%-70%. If you lose three trades in a row, it indicates your current trading strategy has failed. The wisest choice then is to close your trading software and give yourself time to cool down.
The core of this method isn't about always making a profit, but about using discipline to survive longer. Opportunities in the crypto world are always there, but losing your principal means losing the qualification to participate.