2025-12-25 00:24:45

After many years of trading in the crypto space, my biggest realization is actually very simple: only play with spare funds that won't affect your ability to eat and sleep if lost.

My principle is straightforward. If I have 100,000 in savings at home, I only take out at most 20,000 to trade; with a monthly salary of 8,000, I never invest more than 800 each month. Money for living expenses, mortgage, tuition—nothing can be touched. Some may think this is too conservative, but I’ve seen too many people break this rule and end up crashing—no one wants to experience that feeling a second time.

Something more painful than stop-loss is called "desire to recover losses." Many people lose 10% and try to hold on, hoping for a rebound, but end up sliding to 50% and can't bear to cut. By the time they realize the situation clearly, they’ve already lost everything. I learned this lesson thoroughly from the LUNA crash. Instead of obsessing over whether you can recover, set a strict rule: if the short-term price breaks the 5-day moving average or the medium-term breaks the 20-day moving average, exit unconditionally. No matter how good the story sounds, once the price hits the stop-loss, you must leave.

Position management should be diversified. I split my funds into three parts: 30% for core holdings like BTC and ETH—this is my ballast, no matter how volatile, I don’t touch it; 50% for tactical trades, using 15-minute K-line charts for swing trading—take profits and then exit, never greedy; the remaining 20% is reserved as backup funds, only adding to positions when the market presents opportunities. The benefit of this approach is that you can add positions during a bull market correction and avoid forced liquidation during a bear market crash.

Technical analysis doesn’t need to be overly complicated. I follow a "triple resonance" idea: find entry points on the 15-minute chart, check the overall direction with the daily MACD, and confirm support with the weekly Bollinger Bands. Only act when all three signals align—this can double your success rate and is much more reliable than chasing highs and selling lows based on feelings.

The last point is discipline. Short-term trading requires quick entries and exits. Don’t chase after rapid surges or cut losses on bad news. Emotional trading is often the start of losses.

LUNA-0.07%

BTC0.37%

ETH-0.22%

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WalletsWatcher

· 13h ago

Basically, don't gamble with your living expenses. I've been doing that for a long time. The LUNA incident definitely taught me a lesson; the desire to recoup losses is truly the biggest killer.

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AirdropHustler

· 13h ago

You're right, the key is to control your hand and not be greedy. I myself was wiped out directly because of the desire to recoup my losses.

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TokenVelocityTrauma

· 13h ago

It's the same old "only use spare money" advice, easy to say but hard to actually do. --- I'm also in LUNA now, and every time I think about breaking even, I want to vomit blood. --- Three-tenths as a ballast sounds good, but when the real bear market comes, how many can hold on without selling? --- Doing swing trading on 15-minute K-lines? I've tried, but a slip of the hand means losing money. It's still too much of a test of discipline. --- Earning 8,000 monthly salary and only investing 800? Damn, that requires a lot of restraint. --- The hardest part of stop-loss isn't actually cutting losses, but having to watch it rebound afterward—that's the real test of mental strength. --- Losing money due to emotional decisions, but the problem is, how can you live without emotions? Haha. --- Diversifying positions makes sense, but in the end, you end up not making any profit at all. --- "Exit when the price hits the stop-loss," that's correct, but why do some people still gamble and can't pull the trigger? --- I agree with using BTC and ETH as ballast, at least it won't affect sleep quality too much.

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NotAFinancialAdvice

· 13h ago

Everyone's right, but I think most people simply can't do it, especially the hurdle of the desire to recover losses. My personal experience tells me that when a breakout occurs, you must walk away, but when it comes to actual execution, people start making up stories. I was also involved in the LUNA wave, and I still feel a bit scared now. The 37-two split position logic is good, mainly because it requires discipline. I now hold onto BTC and ETH firmly without moving, and the rest is really about quick in and out, leaving no room for greed. The key is still that phrase—idle money. If you can't afford to lose it, don't bother, that's the bottom line.

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RunWhenCut

· 13h ago

Well said. I was also a victim of the LUNA wave, and now I strictly adhere to the principle of holding only idle funds. Ten years of sharpening the sword with this level of awareness is very insightful, brother. The desire to recover losses really hit me; I’ve lost so much repeatedly. A 30% stop-loss cushion is a good setup; I’ll try to learn from it. Discipline is really the hardest part; emotional reactions are too easy. Setting a stop-loss death line is actually a life-saving line, but many people don’t believe it. Diversifying positions sounds simple but is very painful to implement. If it breaks the moving average, just run; it sounds harsh, but it’s indeed effective.

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