In the cryptocurrency market, you will see two extreme account curves: one starting from a few thousand USD and doubling to a million USD in half a year; the other earning ten thousand USD yesterday, only to lose everything today after a retracement.

This is not an isolated case but a true reflection played out every day in the crypto market.

Many traders blame their failures on insufficient technical analysis or bad luck, but if you look deeper, the fundamental difference actually points to one thing: a lack of understanding of position rolling logic and not knowing when to take profits.

**Why is contract trading so prone to liquidation?**

Carefully analyzing those accounts that have stepped on mines, the main reasons for losses boil down to these three points:

First, entering the market despite uncertain signals. Without clear entry signals, traders tend to find reasons to create signals themselves, often resulting in being shaken out.

Second, starting to aggressively add positions after earning small profits. Greed is the easiest way to crush a trader’s rationality; a reversal in the market can wipe out everything instantly.

Third, stubbornly holding on during market retracements. Overconfidence drives traders to avoid stop-losses, and ultimately, luck turns into complete failure.

**Those who can truly stabilize their funds are often the most disciplined traders.**

Their position rolling logic may seem simple but counterintuitive, making it difficult for most people to accept. Following this framework can help avoid 90% of detours:

**First Principle: Take profits on the first successful trade and withdraw the principal immediately**

As soon as the first trade is profitable, withdraw the initial capital right away. All subsequent operations should be conducted using only the profits.

The benefit of this approach is a completely different mindset. Even if subsequent trades result in losses, you are losing market profits, not your own capital. With a stable mindset, your operations are less likely to become distorted.

**Second Principle: The more you earn, the stricter your risk management**

When floating profits reach 50%, immediately move the stop-loss line to the cost basis, locking in a safety margin at the bottom. If the market continues to rise, at least protect over 30% of the profits as a buffer.

The goal is never to earn every last penny but to ensure you don’t get pushed back to the starting point. Securing the profits already earned and safely locking them in is the true victory.

**Third Principle: Only act when the market is truly in position**

Position rolling is not about trading frequency but about market strength. The trend must be clear, and volatility must be sufficient to justify entry.

If the opportunity doesn’t come, it’s better to stay out and observe rather than force a trade. Such patience is often the key to differentiation.

**The crypto world is never short of people chasing quick profits from a market surge; what is truly rare are traders who can steadily preserve their gains.**

This is the biggest dividing line between people—not who has the strongest skills, but who can effectively keep profits in their accounts. Mainstream coins like Bitcoin and Ethereum may have great market conditions, but without strict capital management and risk control, no matter how much profit is made, it’s just an illusion.