In August, the crypto market saw some panic selling while others held firm and turned the tide.

A trader from Shanghai sent me a screenshot of his K-line that day—long positions in ETH and SOL with a floating loss of 1 million USDT, his finger hovering over the sell button for a long time. His message was straightforward: "Should I cut losses?"

I looked at the market and didn’t offer any comfort. The crypto world never needs reassurance, only judgment. That wave of volatility looked dangerous, but if you see the bigger cycle’s direction clearly, rushing to cut losses is actually the stupidest move. In the end, I only said four words: Hold on tight through this wave.

What was the result? He didn’t cut losses, his account rebounded to positive territory, and he ended up making a profit of 500,000 USD on that trade.

This guy’s entry technique wasn’t particularly clever—buying high, catching falling knives, adding to positions during market swings. He survived purely because of a fearless mindset. But this precisely illustrates a phenomenon: in this round of market conditions, more than technical analysis, a sense of direction and execution are what matter most.

Since then, his account size has grown to 20 million USD, with 30 BTC locked long-term. The remaining liquid funds continue to participate in swing trades of assets like FHE, ZEC, PIPPIN, and ADA, earning a numbingly steady profit.

What can this case tell us?

**First, blind stop-losses are a waste.** When lacking a clear directional judgment, rushing to close positions often means handing over chips cheaply to those with patience. The market makers’ biggest fear isn’t a decline, but you holding on stubbornly.

**Second, finding the right approach is crucial.** It’s not about blindly following the trend, but about understanding the logic of the market by following those with judgment when the market is unclear, which can save you many detours.

**Third, courage and position management are two different things.** Being willing to participate in volatile assets is good, but you must also understand your risk tolerance. Holding 30 BTC long-term while engaging in short-term swings shows what balance really means.

Of course, this isn’t about advocating for all-in bets or betting on a single asset. The market will never change just because of your courage, but your depth of understanding of the market determines whether you are passively stop-lossing or actively seizing opportunities during volatility.