The moment my account was wiped out within three hours, I watched the constantly falling numbers on the screen and felt as if I was pressed down onto the ground by reality.

After that blow, I began to reflect wildly. I asked those around me for advice and started over with a borrowed 200,000. In 90 days, using a trading method with a 78% win rate, I grew the account to 20 million. How hard was this process? Words can't describe it. But it was this experience that helped me summarize a few core principles that I still follow today.

Whether you're a newcomer just entering the market or an old hand caught in a trap, these experiences are worth your serious attention.

**Risk control is more important than market prediction**

The difference between crypto trading and gambling boils down to one word: system. Gamblers rely on intuition; traders rely on discipline.

Many people treat perpetual contracts as a tool to turn things around, but actually, there's no problem with the instrument itself—it's how you use it. Using 100x leverage isn't scary; the key is how much principal you use to open positions. My habit is to only use 1% of my total funds, with the remaining 99% as a buffer. For example, with a $5,000 account, I open at most 20 positions, set a trailing take profit at 2%, and never let the stop loss exceed 3%. I only trade for two hours a day; the rest of the time is for waiting.

What truly destroys traders is never black swan events, but the lack of a defensive line combined with an obsession with never admitting mistakes.

**Why is chasing gains and cutting losses so deadly**

Just look at the data: 90% of retail traders lose money because of this. When the market is rising, they get greedy and go all-in, fearing missing out. When the market drops, they panic and cut their losses, fearing going to zero.

This repeated behavior alone is enough to eat up transaction fees and slippage. More importantly, you are completely driven by emotions.

The correct approach is actually very simple: before you decide to buy, think everything through. Why buy at this price? Where should you admit defeat and exit if it goes against you? How much profit should you take to secure gains? Write these down, and once you execute, don’t change your mind.