Have you heard the saying "Deadly ten years, but a smooth ten days"? I used to think it was just motivational fluff until I turned 10,000 yuan into 1 million in half a year, and only then did I truly understand its weight.

But there's a key word that's often overlooked—**顺势** (going with the trend), not blind gambling.

## Why Beginners Always Lose Money in Trading

Over the past two years, I've seen many people do trend trading, with similar routines: bullish on a mainstream asset, heavily loading up and rushing in; if they lose, they add more; if they win, they double down crazily. The final result? The account shrinks more and more with each operation. The problem isn't trend judgment but **disorderly leverage**.

My approach is completely opposite. Only add positions with floating profits, set stop-losses to lock in gains, and never exceed 3x leverage. Sounds conservative? Try it and see how long you can survive.

## Step 1: Put your principal into an "insurance box"

Divide 10,000 yuan into two parts. 5,000 yuan directly frozen into a secure account, unmoving—this is the account's "ballast."

The remaining 5,000 yuan goes into the trading account. Even if the exchange allows 10x leverage, I only dare to open 10% of the position. The actual risk level is similar to conservative financial management.

Set the stop-loss at 2%. That is, at most a 100 yuan loss per trade, which is 1% of the total principal. What's the benefit of this setup? Very little psychological pressure—almost none—allowing you to make rational decisions.

## Step 2: Not all opportunities are worth entering

In May last year, a popular coin dropped for three consecutive days, showing obvious panic signals on the K-line—this is when entering the market is called "going with the trend."

I built a position at the low point, then waited. After three weeks, when the price reached the preset target, I closed all positions, netting 35,000 yuan. The entire process involved no additional averaging down and no intention to change the stop-loss.

The essence of trend-following is actually **first to strengthen the principal, improve risk resistance, and then roll the snowball**.

## Step 3: Let profits do the work

This is the "laziest" part—never move the principal, only use the profits earned to take risks.

Once, a popular asset traded sideways for 38 days, with trading volume suddenly surging by 30%, even breaking previous highs. When this feature appeared, I used 2x leverage to build a position. A 10% increase moved the stop-loss to the cost price. Another 10% rise, and I added to the position with floating profits, but kept leverage within 3x.

If all goes well, after two cycles, the gains are quite substantial.

## Four unbreakable rules

1. **Set a stop-loss before building a position**—no matter how optimistic the trend, this is the bottom line.
2. **Take 20% profit when gains reach 30%**—don't be greedy; stable growth is more important.
3. **Stop trading for 48 hours after two consecutive losses**—give yourself time to calm down and review where the problem lies.
4. **Stop trading if monthly losses exceed 10% of the principal**—that month is no longer suitable for continued trading.

## The current market environment

Volatility is decreasing, and simply holding on stubbornly is unlikely to yield big profits. But this is not a reason to give up; instead, it calls for **more careful use of tools and methods**.

Leverage itself isn't scary; what's frightening is disorderly operation. Clearly segment risks, focus only on opportunities with certainty, and appropriately "laze around"—avoid overtrading, don't watch the charts obsessively, and don't change plans for small fluctuations. This can actually help your account grow steadily.

The crypto world’s comeback is never about quick wealth but about finding a sustainable path within constraints.