How can you sleep soundly when your account is down nearly 40%? It's not about having nerves of steel—it's about letting position sizing control your risk.

During the FTX crash in November 2022, my portfolio instantly evaporated by 38%, but I still slept like a baby that night—because I was only half-invested, and still had plenty of dry powder.

After eight years in this industry, I stick to one iron rule: split your principal into five parts, and only use one part at a time when entering the market. Each trade has a hard stop-loss at 10%, so any single mistake only costs you 2% of your total capital. Even if you hit five consecutive losses, you'd only be down 10%—with four more chips left to stage a comeback.

Be even more disciplined with taking profits—start scaling out at 20% gains, convert to USDC and use it for arbitrage. Since last December, that approach alone has given me a steady 27% annualized return—better than a lot of mining operations.

Last month, a junior I mentored started with 30,000 USDT, strictly followed this strategy, and grew it to 62,000 in three months. During that 22% XRP flash crash, he avoided losses simply because he refused to chase when the daily chart was below the 60-day moving average.

If the trend isn’t right, just sit on your hands and play dead. Better to miss out than to catch a falling knife.

I’ve already stepped into all the traps on this road—don’t go in barefoot yourself.