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I still vividly remember that cold winter in 2018 when I first stepped into the crypto world with 20,000 yuan. At that time, I knew nothing about the industry, didn't understand the difference between Bitcoin and Ethereum, and my only thought was—I've heard you can get rich quickly here.
Eight years have passed. The amount in my account has grown from 20,000 to 50 million. But do you know what? What kept me alive and helped me make steady profits wasn't some sophisticated technical indicator or insider information, but the simplest and most boring rule—the Five-Fold Rule.
**The Iron Law of Capital Management: Always Invest Only One-Fifth of Your Power**
Divide your total capital into 5 parts, and only use 20% of it for each trade. It sounds simple, but this simple rule has saved me countless times.
What do beginners like to do most? Go all-in on a trade. When the market fluctuates slightly, they get trapped, then start praying and regretting. I don’t play that way. My logic is this: limit each trade to 20% of the total funds, and set a 10% stop-loss threshold. In other words, even if I make a wrong judgment once, I only lose at most 2% of the total capital; even if I fail five times in a row, I only lose 10%. But as long as I get one correct judgment, I let the profits run freely, setting a take-profit target of over 10% to harvest gains.
Last year, I had a disciple who had no special talent, just stubbornly followed this system. In three months, his capital doubled. All he needed to do was control greed, suppress panic, and operate strictly according to discipline.
**The Core of Making Money: Follow the Trend, Don’t Fight Against the Market**
In the crypto world, the most profitable approach is actually very straightforward—follow the trend.
During a downtrend, every rebound could be a trap set by institutions to lure in traders; during an uptrend, every pullback is a real buying opportunity. Those who spend all day trying to catch the bottom? Seemingly clever, but actually the most dangerous. Remember those who bought SOL at two digits in USD? Watching it continue to drop to $60, thinking to yourself—am I crazy?
Discipline, patience, and execution—these three things are a hundred times more valuable than your trading skills.