In 2017, I entered the crypto space with $5,000. These five years have witnessed so much: some people’s contracts blew up and they were back to square one overnight; others mortgaged their homes to buy the dip, only to lose everything in the end. Meanwhile, my account curve has always been trending upward at a 45-degree angle, never experiencing a margin call, with a maximum drawdown controlled within 8%.

The secret is actually simple: no insider information, no watching charts to guess rises and falls, and no belief in K-line mysticism. I just treat trading as a "profitable business" to do.

**First underlying logic: Lock-in profits and compound**

Every trade must have a take-profit and stop-loss set. Once profits reach 10% of the principal, immediately transfer 50% to a cold wallet, and use the remaining half to continue rolling the position with the "profit principal." This design is clever—when the market rises, you earn compound interest; if it reverses, you only give back at most half of the profit, keeping the principal always safe.

Over five years, I have withdrawn a total of 37 times, with the highest weekly withdrawal reaching $180,000, verified by a major exchange’s customer service via video to confirm the source of funds. This is not to show off, but to say: stability is the prerequisite for making big money.

**Second logic: Dislocation position building**

At the same time, monitor three cycles—set the daily direction, find ranges on the 4-hour chart, and enter precisely on the 15-minute chart. In a ranging market, this method particularly captures the dividends.

For the same coin, I open two positions: buy on breakout (stop-loss at the previous low on the daily chart), and short in overbought zones. Both stop-losses are controlled within 1.5% of the principal, with take-profit targets set at over 5 times.

A real example: In 2022, when LUNA collapsed with a 90% drop in 24 hours, I made 42% in a day using both long and short take-profit orders. While others were crying over margin calls, I was picking up bargains and making money.

**Third logic: Small stop-loss for bigger profits**

Here’s a painful number: my win rate is only 38%. But why can I still make steady profits? Because the ratio of profits to losses is 4.8:1. Using a 1.5% small stop-loss to bet on bigger trends, the mathematical expectation is always in my favor.

When the market is good, move the stop to let profits run; when it’s bad, cut and run—simple as that.

**Three ironclad practical rules**

Divide your capital into 10 parts, invest at most 1 part per trade, and never hold more than 3 positions at once—always leave room for yourself. After losing two trades in a row, shut down and go to the gym; don’t touch "revenge trades"—emotions are the biggest enemy in trading. Every time your account doubles, take out 20% to allocate to US bonds and gold, so you can sleep peacefully even in a bear market.

Trading is not afraid of making mistakes; it’s afraid of one mistake that causes a margin call you can’t recover from. These three simple yet counterintuitive methods have helped me grow from $5,000 to seven figures. Follow them, let the exchanges work for you, not the other way around.