I've encountered situations like this. A friend told me last August that he used half a year's savings to buy mainstream cryptocurrencies all at once, planning to take a gamble and then stop. As a result, the market adjusted, and his account shrank by 80% directly. He couldn't sleep all night and asked me what to do. My advice was very straightforward: don't think about doubling your money back, make three trades first, don't set automatic stop-losses, and manually calculate your position size for each trade.

He thought it was simple, but it took him four days to dare to place his first order. Why so hesitant? Because he used to go all-in before, never really thinking about risk management.

**The mindset of getting rich quickly is the direct cause of retail investors' losses**

There are too many stories like this in the crypto world. Many people say, "If I win this time, I’ll turn things around," but they end up sinking deeper. Indeed, some people get rich overnight in the crypto market, but stories of liquidation are even more numerous, though no one dares to talk about them.

The first lesson for traders who survive is: how to leave the market alive. My own rules are strict—no single loss exceeding 2% of total funds, and daily maximum drawdown controlled within 5%. This industry is never about who makes the most in one go, but who can persist longer.

Why do retail investors always get cut? Many people are not here for investing; they are venting through trading. Frustrated in life, they hit hard in trading, and the tragic state of their accounts becomes reality.

**Trading systems are actually not that complicated**

People always think I have some secret indicator, but my approach boils down to these points:

First is market feel. This is not mysticism but a conditioned reflex to market sentiment. I spend four hours every day reviewing price movements, and I’ve maintained this habit for three years. I observe which time periods are prone to false breakouts, which news truly drives capital flows—these are accumulated through repeated observation.

Second is money management. Before entering a trade, calculate your loss limit and control risk per trade. This is more important than choosing coins or timing the market. Because no matter how good the market is, if you fail at risk management, all your advantages are wasted.

Third is discipline. Cut losses when needed—don’t argue with yourself. Many people get stuck here—knowing they should cut losses but still hoping for a rebound. Crypto markets are volatile; deciding to cut losses is actually the beginning of protecting yourself.