Talking About Capital Management: Survivors Are All "Cowards"

I am Nam, with over 8 years of experience in the crypto market. I have witnessed countless “geniuses” rise and fall, going from zero to millions and back to zero after a crash. Today, I won’t talk about K-line or place orders; I’ll discuss survival: capital management – something even more important than correctly predicting the trend, yet it’s something 90% of traders never learn. The Truth About Account Burnout: You Lose to Yourself, Not the Market I have a friend who entered the market at the peak of the 2017 bull run. Thanks to leverage, he increased his capital to over $200,000 and believed he was “the market’s favorite.” By the crash in March 2020, he used 50x short, and just one bounce against him could wipe out his account. That day, he called me, voice trembling: “Hey, I’m not wrong about the trend, just entered too heavy, no room to retreat.” I’ve heard this line many times before. The market is always volatile. But an account going to zero is never caused by the market; it’s because you pushed yourself to the edge of the abyss. Going all-in, trading heavily is essentially gambling. You might win 9 times, but one mistake and you’re wiped out. According to my internal statistics from the trader community: 👉 Over 80% of accounts burn out from over-leveraging on a single trade. Three-Stage Capital Management Strategy: The Coward Lives Longer I don’t use any fancy tactics. I just survive by a very stupid rule: A losing trade must not damage your core. Stage 1: Exploratory Trade (Up to 30%) For any trade, I enter with a small position first. For example, with a $100,000 USDT account: → First trade maximum $30,000 USDT The goal isn’t to make money but to test the judgment. Wrong: cut lightly, no pain Right: establish a foundation to continue trading The first trade is reconnaissance, not the main attack. Stage 2: Confirmation Trade (30% – 40%) Only when the trend is clear do I increase my position. For example: Price breaks strong resistanceRetests without breaking downComplete bullish structure Only then do I add 30–40% of my capital. Principles: 👉 Only increase when the initial trade is profitable 👉 Never average down in sideways markets Stage 3: Managing Stop Loss and Take Profit Stop Loss Each trade is allowed a maximum loss of 2% of the total account. For example: $100,000 USDT accountMaximum loss per trade: $2,000 USDT Hit stop loss immediately, without mercy. Take Profit When total profit reaches 50% of the capital → withdraw the principal to lock in gains Let profits run to continue growing. The market doesn’t kill you. Greed does. Uncontrollable Hands? Use These “Contrary to Nature” Tricks Leverage is a Sword, Not a Life Raft Higher leverage means smaller margin of error. 10x: just a 10% price move against you and you’re wiped out 50x: just one candle sweep and it’s gone My rules: Beginners: no more than 5x Skilled traders: limit to over 10x Survival is more important than adrenaline. Emotion Switch Lose 2 consecutive trades → take a break for the day Big profit → withdraw 30% of the profit for personal use Detaching emotions through physical actions is more effective than any indicator. Don’t Love Altcoins Altcoins are riskier than futures burnouts. My capital allocation: 50% spot BTC/ETH 20% low-leverage futures for hedging 30% cash waiting for opportunities Don’t believe in “x100 coins.” Ordinary people can’t make money beyond their perception. Final Words Crypto has no legends. Only those who live long enough to catch luck. People who make big money aren’t because they take reckless risks, but because they lose less and win big. Remember: Capital management doesn’t make you rich quickly, but it helps you survive longer Discipline is armor, emotions are a noose In this market, the coward is the ultimate winner. If you want to go long-term in crypto, learn how to protect your account before thinking about getting rich.