Why do some people in the crypto world achieve steady growth while others frequently get liquidated? Essentially, it all comes down to the trading system.

I know a trader who started with $1,200 and turned it into $42,000 in three months. Now he's consistently at $76,000, and he never got liquidated during the entire process. Many think it's just luck, but in reality, there's a solid trading framework behind it.

**Position Sizing Is the Foundation for Survival**

Going all-in with $1,200 in one shot? That's asking for trouble. The correct approach is to split the capital into three parts, each $400, and let each serve its purpose.

The intraday portion focuses on short-term trades, with at most one trade per day. Once the profit target is reached, close the position immediately—no room for greed. The swing trading part looks at the market every ten to fifteen days, only engaging in major trend moves. The core position remains untouched, acting as the account's lifeline, protected from any pullbacks.

Why set it up this way? Those who go all-in often get wiped out during corrections, leaving no capital to survive. With a position-sizing system, if one judgment fails in a certain direction, the other parts can continue to operate, preventing the entire account from collapsing due to a single mistake.

**Most of the Time in Crypto Is Wasted**

80% of market movements are just consolidations—either up or down, with no third state. The problem is most people can't sit still; they need to trade every day, but in doing so, they get eaten up by fees and slippage.

The truly knowledgeable do this: when there's no clear direction, they watch passively and wait. Once a trend is confirmed and signals are clear, they jump in to ride the entire move. Every profit earned this way is more reliable. As for gains over 20%, take profits in stages—don't be greedy.

**Discipline Overcomes All Emotions**

That trader set three unbreakable bottom lines:

- Stop loss at 2% loss—no exceptions.
- When profits reach 4%, halve the position to lock in some gains.
- Replenishing positions? Absolutely forbidden—it's the start of a downward spiral.

99% of trading failures happen when emotions take over. Thoughts like "Wait, it might rebound" or "This time is different, I'll add more"—once these thoughts appear, the account starts to lose control. Disciplined traders don't do this; rules are rules, and execution is a thousand times more important than judgment.

**Only by Living Long Enough Can You See the Next Bull Market**

The key to success in crypto isn't predicting the market but surviving long enough. Those who witness the next bull run all have a complete trading system protecting them. The system doesn't need to be overly complex—position sizing, stop-loss, and reducing positions are enough.

Many people feel they're heading in the wrong direction or taking detours. To change that, a system and discipline are prerequisites. Trading without a system is just gambling. Start with position sizing, prioritize risk management, and take it step by step.