Yesterday, a trader contacted me, sending a screenshot of his position and asking in despair: "Bro, look, we're doing the same strategy, I lost 28% directly, how did you make 42%?"

I looked at his trading record and immediately knew where the problem was—during the same market swings, he chose to go all-in and hold on, while I was already using profit to generate more profit.

In these six years, I’ve blown my account three times, once losing all 220,000 yuan. Those painful lessons finally helped me understand a set of principles, and I might as well share them openly today.

**The core idea is actually simple: Use the money you earn to take risks, and let the principal sit tight.**

**Tip 1: Be cautious when testing the waters**

Start with no more than 4% of your account. For example, with 10,000 USDT, your first trade should be no more than 400 USDT, with a stop loss at 80 USDT. The principal is like the seed of a business—once it's gone, it's really gone. Many people blow up their accounts frequently, and the root cause is this—going all-in right away and gambling with full position.

**Tip 2: Lock in half when you’ve earned half**

When your profit reaches 50%, say you turn 400 USDT into 600 USDT, immediately withdraw 300 USDT to a safe place, and keep the remaining 300 USDT as new "ammunition" to continue trading. What's the benefit? Even if the market reverses later, you’re already a winner. The money lost isn’t your hard-earned principal; it’s the market’s dividend.

**Tip 3: Hedge when floating profit exceeds 10%**

When your floating profit exceeds 10% of your initial principal, it’s time to adjust your mindset. Move your stop-loss up to your cost price, and open a small opposite position to hedge. This way, if the market drops, your core isn’t hurt; if it continues upward, you can still catch the trend. Truly, you can have your fish and eat it too.

**Tip 4: Make quick decisions within 3 minutes**

If a breakout occurs with increased volume, push all your profits to chase the trend. But if the breakout happens and volume is shrinking, then close all positions with one click—don’t linger. Many veteran traders’ biggest flaw is indecisiveness; this procrastination will eventually drain your account.

**Tip 5: When retracing to 15%, forcibly take half**

When the price drops 15% from its peak, take out half of your current profit. Let the remaining half continue to ride the trend. This method effectively prevents profits from turning into losses. Greed is often the last straw that destroys an account.

**Tip 6: Withdraw some profits daily**

Before the trading day ends, withdraw the day’s profits, leaving only the principal plus 10% of flexible funds in your account. The psychological effect is that you won’t suddenly decide to go all-in and gamble on the next day just because there’s money from yesterday’s gains sitting there. Emotional trading is a common pitfall.

Ultimately, the brilliance of this method lies in: making each profit automatically become a "free chip" for the next trade. The market won’t pity anyone, but it always rewards disciplined traders.

Are you tired of repeatedly cutting your losses? Opportunities are everywhere every day; the key is whether you can survive until they come. The ones who can truly laugh last in this market are not the smartest, but those who understand "when to let go."

Remember: Your principal is your ticket to financial freedom.