Why is it that such a small principal has resulted in such rapid losses?
Actually, the answer is not complicated at all.
It's not that the market is difficult, it's that you have no rules.
The most common mistake small investors make is: being impatient.
With a few hundred U or a few thousand U, yet thinking every day about doubling it in one shot.
Going all in, using leverage, chasing prices.
When prices rise, you feel like you're about to take off; when they drop, you directly get liquidated.
Last year, a brother came to me with only 700 U left in his account.
I told him just one thing: stop thinking about doubling; first learn to survive.
The first thing we did was actually very simple: break that 700 U down.
Not a single bet, but divide it into several parts to do it slowly.
One small part only trades on intraday fluctuations, taking profits at the first sign and not fighting for more.
One part specifically waits for clearer market opportunities, willing to wait a few more days.
Another part simply remains inactive as insurance.
Doing this is slow, but it has one advantage: no matter how much the market fluctuates, you won't be kicked out.
The second thing is to reduce trading.
Many beginners' biggest problem is not that they can't understand, but that they want to trade in every market condition.
Trading in sideways markets, trading in volatile markets, wanting to place an order at the slightest movement of the candlestick.
Later, I told him a very simple thing: 80% of the time, the market isn't worth trading.
Only act when opportunities arise.
The most crucial step is to write the rules down clearly.
When a stop loss is hit, exit; take out a portion of the profits first, and absolutely do not average down when in losses.
Many people stumble on this step: clearly wrong, yet still thinking “maybe it will bounce back if I just wait a little longer.”
The market loves to harvest this kind of complacent mentality.
Three months later, he sent me a screenshot.
700 U had slowly grown to over 10,000 U.
Later, after five months, the account was already at over 30,000 U.
What impressed me the most wasn't the numbers but what he later said: I used to look for opportunities every day, now I only wait for opportunities.
Making money in the crypto world isn't that mysterious.
The real challenge has never been understanding the market, but controlling your hands.
A small principal isn't scary; what's scary is always wanting to make a big comeback. As long as your account is still there, opportunities will always be available.
But if you keep getting knocked out, no matter how good the market is, it won't matter to you.
I've already paved the way for many people through a lot of wrong turns.
If you're also stumbling around in the crypto world right now, it's actually not surprising.
It's just that some paths are much slower to walk alone.
Having someone guide you can save you a lot of money.