I'm not a top influencer in the crypto circle, and I don't understand those who flaunt seven-figure profits. I've experienced margin calls, staying up all night, and trembling while staring at the candlestick chart—I've been through all of that. Last year, a friend of mine approached me, holding about 3400U, with no illusions of overnight riches, and asked, "Can I slowly recover the losses?" From his words, I knew he had been awakened by the market.

I didn't talk to him about MACD, RSI, Fibonacci—those indicators sound high-end, but for small-cap players, they only increase the cost of decision-making. What I shared were three pieces of experience earned with real money.

**First: Don't put all your chips in one direction, especially when your capital is limited**

3400U isn't much, but dividing it this way helps you survive longer. I advised him to split the money into three parts: the first for short-term trades, with the rule of only opening two positions and exiting after each to prevent frequent trading; the second for trend-following, waiting on the sidelines if the market doesn't meet expectations; the third as emergency funds, never to be used for recovery.

Those who can survive long-term in the crypto market are not the ones who make the fastest profits, but the ones who die the slowest. Diversification doesn't mean buying a bunch of random coins; it means mastering the timing and size of each entry. Every small amount should be handled cautiously.

**Second: Making money can actually make you more prone to blow-ups; most margin calls happen when there's unrealized profit**

This is something I feel deeply. The market's trick is to give you some sweet rewards first, making you relax your guard, then suddenly deliver a fatal blow. I told him to strictly follow the "small chunks" principle: take partial profits when there's a gain, and don't be greedy waiting for big moves. Take half of the profit at 50%, and let the rest follow the trend.

Mindset is key. When you’re losing early on, you tend to stay calm because you're afraid. But those who make money often become overconfident, which is the most dangerous.

**Third: Stop-loss is harder to learn than take-profit, but more important**

Most people's problem isn't that they can't set a stop-loss, but that they change it after setting it. Seeing a 5% loss, they soften and think maybe it will rebound if they wait. When the rebound doesn't come and the loss hits 20%, they’re reluctant to cut. The final result is small losses turning into big ones.

I advised him to set a proper stop-loss level and let the stop-loss order execute automatically, avoiding the temptation to change his mind. Accept a 3% or 5% loss—only then can you survive longer. In the long run, those who can control risk end up earning the most.

These three points are nothing technical; they are basic risk management. But I’ve found that the more fundamental something is, the more easily it gets overlooked. Those complex indicators and trading systems sound flashy, but in execution, they often fail against human nature. In the end, those who succeed are those who master the basics to perfection.