How long have you been trading? If you're still opening and closing positions based on intuition, I have to tell you a harsh reality: most people in this market get washed out before they even start making money because they don't know how to manage risk.

Let's start with a common operational process. When the market rises, you can't sit still—you rush to go long, only to be slapped in the face; unwilling to accept a reversal, you go short, and the market surges straight up. Cycle after cycle, your account is bleeding. This isn't a matter of luck, nor is it the market's fault—you're gambling, not trading.

**First thing: Manage your principal**

The most effective way to live is simple: divide your capital into 5 parts, and only use one part for each operation. Set a stop-loss at 10 points, so even if your judgment is completely wrong once, you only lose 2% of your total funds. Even five consecutive mistakes only result in a 10% loss.

Conversely, once you're in the right direction, set your take profit at more than 10 points. This ratio arrangement ensures that risk is always locked within a controllable range. As long as you can maintain a win rate above 50%, you can steadily grow over the long term. This isn't some advanced theory; it's just basic math.

I've seen too many beginners go all-in right from the start—cheering when they make money, and blowing up their accounts when they lose. That's not trading strategy; that's a tenfold leverage gamble. The market fluctuates every day, and being able to stay alive to see the next trend is more valuable than any reckless profit dream.

**Second thing: Learn to follow the trend**

The key to increasing your win rate is two words: follow the trend.

In a declining market, every rebound is an opportunity for bears; in an rising market, every pullback is a chance for bulls to buy. Sounds basic, right? But few can actually execute it. Most people always try to catch the bottom or top, thinking they can hit the lowest or highest point—resulting in being thrown off.

Crypto market volatility is more intense than traditional markets, but the logic remains the same: once a trend forms, it has strong inertia. You don't need to predict the turning point; just follow the direction that's already there. When the uptrend is still ongoing, don't think about shorting; when the downtrend continues, don't chase that rebound.

**Why do some people survive longer**

Those who can consistently profit in this industry are not necessarily smarter or better at predicting the market; it's because they have strong execution. No matter how perfect the strategy, if you can't execute it, it's useless. Stop-loss when needed, follow the trend when appropriate. Not being knocked out by a couple of losses, nor blinded by a few big gains.

After 8 years of market ups and downs, I've seen many genius-level traders start to lose themselves after making money in a big trend, only to exit the next cycle. I've also seen many ordinary traders, relying on disciplined operations, steadily accumulating year after year.

Simple things, repeated over and over, make you an expert. The principles of trading are all laid out; the question is whether you're willing to give up those exciting illusions and turn to do the boring but effective things.