Why do exchanges make money, and retail traders lose money? Simply put, it's a difference in—mindset and discipline.

Since I entered the crypto space in 2019, my account has grown from 1,800 USD to seven figures. Over six years, I haven't had a single liquidation, while friends around me have blown up their accounts or even jumped from buildings. My maximum drawdown has never exceeded 8%. It's not that I'm smarter than you, nor did I have any insider information. It's purely about treating the market like a casino—being the boss instead of a gambler.

Breaking it down, there are three core principles:

**First Trick: Lock in Profits and Make Them Bulletproof**

From the moment you open a position, set your take-profit and stop-loss orders—don't wait for the market to move before reacting. Whenever your account's unrealized gains reach 10% of your principal, immediately move 50% of the profit to a cold wallet. The remaining principal and profit continue to compound. What's the benefit? If the market keeps rising, you earn compound interest; if it reverses, you only give back at most half of your profits, but your principal is always safe.

Over five years, I’ve withdrawn money 37 times from my account. The largest single withdrawal was 150,000 USDT in one week. I even received a video call from exchange customer service verifying the source of funds, suspecting money laundering. But when I checked the transaction records, I just laughed—this isn’t dirty money; it’s stable withdrawals.

**Second Trick: Misaligned Positions, Earn Twice from Volatility**

I often open two orders on the same coin:

Order A is a trend-following order—buy when it breaks out, with a stop-loss at the previous low on the daily chart. Order B is a contrarian setup—place a limit short order in the overbought zone on the 4-hour chart. Both stop-losses are controlled within 1.5% of the principal, with take-profits set at five times or more.

Why do this? The market spends about 80% of its time in consolidation. While others get wiped out by wrong directional bets, I profit from both sides. On the day Luna collapsed last year, the price plunged 90% within 24 hours. Both my long and short orders hit take-profit, and my account increased by 42% in a single day.

The key is to see through three cycles: the daily chart for the big trend, the 4-hour for medium-term ranges, and the 15-minute for precise entries.

**Third Trick: Stop-Loss is Your Ticket—Small Losses for Big Opportunities**

Many see stop-losses as failures; I see them as buying tickets. A small 1.5% stop-loss can give you a chance to take control of the market. When the trend is favorable, use a trailing stop to let profits run; when the market looks wrong, exit promptly.

My win rate is only 38%, less than four in ten trades, but the ratio of profit to loss per trade is 4.8:1. That means I can earn enough from one successful trade to cover five losses. This is why a 38% win rate can still accumulate seven figures.

**Protect your capital with three more details:**

Divide your funds into 10 parts; use at most 1 part per trade, and never hold more than 3 positions simultaneously. After two consecutive losses, close the software and go to the gym—don’t think about revenge trading. When your account doubles, withdraw 20% to buy US bonds or gold. This way, even in a bear market, you can sleep peacefully.

It all sounds simple, but it’s against human nature. Most people fail because of greed—wanting to go all-in, aiming for tenfold returns, or gambling to recover losses. The market isn’t afraid of your mistakes; it’s afraid you’ll blow up and never recover.

Remember these three tricks, and next week, the exchange will truly work for you.