Last year I met a buddy, Brother Zhang. He turned an initial 100,000 USD into just 5,000 USD, with his eyes popping out in horror.

At that time, a certain coin was surging wildly, fueling the Meme craze. He was so caught up in FOMO that he went all-in on a new coin, only to get cut in half the next day. The reality is, 94% of the coins listed on a major exchange last year were in loss—this number really deserves some deep thinking.

Where did it go wrong? He treated trading like gambling, making over 30 contract trades a day, with the transaction fees eating up a large chunk of his capital. Back then, he had no strategy whatsoever.

I shared with him three "life-saving rules":

**Rule 1**: Only look at 4-hour candlestick charts. Wait for confirmed signals like MACD golden cross + Bollinger Bands breakout before acting. Do no more than three trades a day, avoid random copying.

**Rule 2**: Limit the first position to within 10% of your capital. Take profit when up 20%, then close half to lock in gains, and move the stop-loss on the rest. If it drops 5%, cut immediately. It sounds conservative, but staying alive is more important than quick profits.

**Rule 3**: Keep a trading journal. After two consecutive stop-outs, shut down for three days. Reflection is more valuable than continuing to trade blindly.

Last month, BTC hit a low of $88,900. He used $500 to test the waters based on signals. When it reached $95,000, he took half profits, leaving the rest at $92,000. This trade netted him $800. Sounds modest? But it’s steady money.

Now his account is stable at $30,000, and he no longer stares at the screen at 2 AM.

I often say, 12% of crypto addresses are losing money. Most people turn trading into a gamble of big or small. True turnaround never relies on luck; you need to wait like a sniper for the right opportunity. Before your capital is lost, learning to cut losses is more valuable than anything else.

If you're also caught in the cycle of frequent margin calls, we can chat anytime.