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Many people enter the crypto market, always hoping to double their account overnight. But what happens? Their accounts often go broke after one or two mistakes. I've seen too many stories like this.
Last year, a friend started with only 900U. After four months of steady trading, his account grew to 80,000U. During this process, he never touched derivatives or chased after any hundredfold myths. It was all about method and discipline. Today, I’ll break down this approach.
**Step 1: Position Management and Risk Isolation**
How to split 900U? The most practical way is into three equal parts—
300U for intraday trading, aiming for a 3% profit before closing. No greed, no chasing.
300U for trend trading, only acting when there’s at least 15% room for movement. The core of this fund is patience; most of the time, it remains idle.
The remaining 300U is kept as reserve funds. Unless there’s a major market opportunity or the first two trades incur losses that need topping up, leave it untouched.
Why split like this? The answer is simple and brutal—risk control. Full position trading is like gambling with your life; one mistake, and the game is over. Position splitting gives you room to make mistakes, allowing you to survive longer in the market.
**Step 2: Timing Entry and Waiting for Confirmed Trends**
About 70% of the crypto market time is spent in consolidation and sideways movement. During this period, frequent trading is like fishing in muddy water—high costs and minimal gains.
What’s the smart approach? Patience. Wait for trend confirmation and breakout patterns before acting. Entering at this point significantly increases your win rate.
When you gain 25%, take some profits off the table. Set a trailing stop for the remaining position to let profits run. This way, you lock in gains while still leaving room for further growth.
**Step 3: Iron Discipline—Execution Is Everything**
Three red lines must be respected—
If a single loss reaches 2% of the total principal, stop loss immediately. No bargaining, no luck—just execute.
When profits reach 5%, close half to lock in gains. For the remaining position, set a breakeven stop to protect the principal.
Never add to losing positions. The idea of averaging down sounds rational, but in reality, it’s the start of losing control. Many people get wiped out because of the decision to “add one more.”
**Steady is the only winning posture**
If 900U can grow to 80,000U, that same 80,000U can be wiped out in one mistake. What’s the difference? It’s whether you always adhere to these seemingly simple rules.
While others lose sleep over a few hundred U’s fluctuation or panic at the first sign of trouble, you stick to your plan with discipline. Over time, those small advantages accumulate into significant gains.
The market doesn’t reward luck, but it definitely rewards those who remain rational and disciplined at all times.