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Last night at 2 a.m., a trader asked me: "We are trading in the same direction, why did you lose 28% while I made 42%?"
Same market conditions, same entry point. What's the difference? He kept holding onto his principal and toughing it out, while I used a rolling profit strategy—that's the whole answer to the gap.
Let me be honest. I’ve been in this market for 8 years, experienced 3 margin calls, and lost 200,000. Since then, I completely changed my approach and now achieve consistent profits. What I’ve learned over the years, I call it the "Profit Snowball Technique," which involves six core steps:
**First, the principal is your life**
For every new trade, only invest 5% of your principal to test the direction. Set the stop loss at 0.8%, no negotiations. Sounds conservative? It’s this conservatism that allows 80% of traders to survive longer. If there’s no signal, stay in cash and wait. Keep your principal, and you’ll have confidence.
**When profits appear, learn to split**
When reaching 50% profit, immediately divide the profit into two parts. Lock in one half and take it off the table. Use the other half as trading capital to continue fighting. The key is—only use profits to add positions, never touch the principal. Even if you lose later, only the profits are affected; the principal stays sleeping there.
**When floating profits exceed the principal, switch to insurance mode**
Once floating profits surpass your principal amount, activate the hedging mechanism. Use 10% of the profit to hedge, and widen the stop loss to 50% of the original. When the market pulls back, you can withstand it, and your profits continue to grow.
**Decide life or death in 3 minutes**
See a breakout + volume increase signal? Be decisive and go all-in with profits. Conversely, if it breaks support + volume shrinks, close all positions with one click—no hesitation. Decisiveness is the greatest wealth at this stage.
**Have discipline when retracing 15%**
When a retracement hits 15%, lock in half of the profits and permanently close the greed. Let the remaining half continue to run. That’s true discipline—not out of reluctance, but understanding to leave room for maneuver.
**Take profits daily**
At the end of each day, withdraw all profits. Keep only the principal plus 10% of liquid funds in your account. The benefit is simple—prevent overconfidence, avoid going all-in when a sudden opportunity appears.
This method boils down to one logic: use profits to fight, let the principal sleep, and the account will keep growing. The market is never short of opportunities; what’s missing is discipline. Whether the direction is right is actually a minor issue; the key is whether you can survive long enough. Survive long enough, and the odds will be on your side.
In the same way, in crypto trading, why do some lose money while others make money? Ultimately, it’s attitude. Embed these rules into your bones, and the one smiling at the close will be you.