In the digital asset market over the years, I have seen too many investors fall into the same traps: dreaming of getting rich overnight, yet oscillating between greed and fear, ultimately ending up with nothing.

Some time ago, a friend came to me, and at that time his account only had 3600U left. Six months ago, he tearfully said, "I lost all 360,000 I prepared to buy a house." At that moment, despair filled his face. But he didn't give up; instead, he asked me, "Is there still a chance to turn this around with only this left?"

My answer is very straightforward: "Yes. But the premise is that you must completely give up the gambler's mindset and establish true trading discipline."

Half a year later, he sent me a screenshot. The account that used to be only 3600U had an extra zero behind the balance - he not only recovered a loss of 360,000, but also made an additional 30,000. It's not luck, it's not black technology, it's just three iron rules of trading that can't be simpler.

**1. Position is always the first line of defense**

He used to be a typical "one-shot" player. When he saw good news about a certain cryptocurrency, he would get overly excited and invest all his funds. As a result, after a slight adjustment, his entire account was wiped out.

The first indicator I gave him was very clear: the position of a single trade cannot exceed 20% of the total funds. In numbers, with a principal of 3600U, each trade can use a maximum of 720U. This 20% is a red line that absolutely cannot be crossed.

A stricter standard is 8%—this is the "comfort zone" I recommend. Trading within this range means that even if you have five or six consecutive losses, your account won't die. Your mindset will be much better, and your decisions will be more rational.

Many people feel that making money this way is too slow. But if you think about it from a different perspective: a living account, even if it grows slowly, is always more hopeful than an account that has gone to zero. The cycles of the crypto market are so long that patience is often more valuable than aggression.

**2. Stop-loss is not an option, it is a necessity**

After establishing the position rules, the next step is to set the stop-loss. This is the easiest step to overlook, but the most critical one.

His habit is to stubbornly hold on when he is at a loss, always thinking "just wait a little longer, it will bounce back eventually." What happened as a result? Small losses became big losses, and big losses turned into total ruin.

What I asked him to do is: before entering each trade, decide on the stop-loss price. Once it is reached, regardless of how reluctant you may feel, you must exit immediately. This may sound like it's creating losses, but in reality, it is limiting losses.

Try this logic: a stop-loss prevents a potential 100% loss, with only a small cost of 2-5% loss. Which is more cost-effective?

**3. Emotion is the poison of trading**

The last one, and the hardest to execute: control your emotions.

Once you make money, you start to get carried away; after one loss, you want to double to recover. This mindset is particularly magnified in the crypto market, as the market does have significant volatility. However, the greater the volatility, the more discipline is needed.

His later approach was to set a fixed target return rate for each trade—usually between 3-8%. He would exit once the target was reached, without being greedy. If the account shrank by 10%, he would stop trading for a week to calm down.

Does it sound like self-limiting? To some extent, yes. But this "limitation" is actually protecting the principal. In this market, living long is more challenging than earning quickly.

His account is now steadily growing. It's not because he found some magical coin, nor because of any insider information, but because he has learned to think like a professional trader—pursuing profits only after prioritizing risk.

This is why I say that strict discipline is better than chasing a hundredfold market.