Have you ever found yourself in this situation:

  • The trend analysis is very accurate, the price follows the scenario, even the entry is not bad at all… but in the end, the account still ends up negative, or the profit is not worth much?

Many people blame it on 'bad luck', on 'the market swinging strongly', on 'sharks breaking the deal'.
But the truth is: 90% of cases of 'correct trend but still losing' stem from poor capital management.

Newcomers are preoccupied with finding buy-sell points. Those who have been in the market for a long time understand: capital management is what determines how long you can survive.

01. Why Most Traders Die Not Because of Wrong Trades, But Because of Wrong Money Entry Methods?

Ask yourself, have you ever found yourself in these situations:

  • As soon as you see the price showing signs of movement, go full margin, all-in for 'sure gains', before you can catch your breath you encounter a shakeout → panic psychology, cut at the bottom.

  • Slight profits lead to doubling or tripling the volume, hoping for big gains → the market reverses, profits vanish, and even capital goes negative.

  • After a few consecutive losses, when a truly good opportunity appears, you hesitate to enter, fearing repeating mistakes → missing the biggest opportunity.

What is common in all these scenarios?
👉 Cannot control the capital allocation.

The crypto market is already extremely volatile. If there is no reasonable capital allocation strategy, you are no different from gambling all your assets with uncontrolled odds.

02. Capital Management Is Not Technique – But Survival Law

Capital management is not simply 'how much money to enter'. It is a system of discipline, including:

1. Never Go All In on a Single Order

Professional traders rarely use full capital.
Not because they are timid, but because they understand:

The market always offers opportunities to correct mistakes – if you still have money.

Entering in parts, leaving money for worse scenarios is the way to avoid being eliminated from the game just because of a noise.

2. Stop Loss Is Not Weakness – But Wisdom

Not cutting losses because of 'believing in the trade' is one of the most dangerous traps.

The market owes you nothing, and it can completely go against your expectations longer than your ability to endure.

One failure to cut losses can:

  • Cleanse the results of many months

  • Make you lose confidence

  • Push you into a chain of revenge trading

3. Asset Segmentation – Don’t Let One Emotion Decide Everything

Bing Ge agrees with the mindset of dividing assets into many 'psychological compartments':

  • Long-term wallet: hold core assets, do not touch when the market is volatile.

  • Medium-term wallet: rotation, optimize cash flow.

  • Trading wallet: accept high risks, but always have limits.

  • Cash: ensure living, help alleviate psychological pressure of 'having to win'.

When money is clearly allocated, you will make fewer impulsive decisions.

03. How I Manage Capital in Practice

1. Buy According to Plan, Not Emotion

Do not try to 'catch the bottom'.
Divide capital into many parts, gradually buy according to the pre-defined scenario.

Doing so:

  • Reduce psychological pressure

  • Lower average cost

  • Avoid falling into the state of 'one order decides fate'

2. Leverage Is a Double-Edged Sword

The contract is not bad; the bad part is using it incorrectly.

  • The higher the leverage → the narrower the safety margin

  • Just a slight sweep can wipe out your account

For most traders:

  • 5–10x is enough

  • Higher should only be reserved for extremely disciplined individuals

3. Cut Loss Quickly – Let Profits Run

Losses must be accepted quickly.
Don't rush to kill profits.

Let the market reward you when you are on the right track, instead of prematurely securing profits out of fear of losing.

4. Knowing When to Step Aside Is Also a Skill

You don't always need to trade.

When:

  • Ambiguous trends

  • Distorted news

  • Your own psychology is unstable

👉 Not entering an order is the best decision.

04. Psychology Is the Foundation of Capital Management

Capital management is ultimately not mathematics,
but a battle against greed and fear.

  • Accept small losses

  • Do not try to fix

  • Do not break discipline for a single trade

The survivors in the market are not the best, but those who do not let themselves die foolishly due to emotions.

Conclusion: The Market Determines Profit, Capital Management Determines Longevity

You can be wrong many times – as long as each mistake does not take away too much. As long as you have capital, you still have opportunities.

Good position management, risk control, and keeping a cool head – that is the real path to survive and win in crypto for the long term.

📌 Learn to manage money before learning to make money.
📌 Survive long enough, and profits will naturally find you.