Rules control the hands, and small money can also snowball.
When I first got into the crypto world, I, like most people, always thought that you needed a large capital to play well. Until one newcomer I trained started with 800U and in five months reached 19,000U, and now the account is close to 30,000U, without ever blowing up once, I finally understood: the crypto world is not a casino; it's not about luck, it's about rules and patience.
The three iron rules shared today are the core principles that have allowed me to trade easily from starting with 5000U to now. No matter how much capital you have, as long as you understand and execute, you have the chance to survive and thrive in the crypto world.
1. The money is divided into three parts, and reckless actions will lead to losses.
Many beginners rush in with a few hundred U, becoming complacent when prices rise and panicking when they fall. This is undoubtedly the fastest way to lose money in the crypto world.
No matter how little the principal is, it must be divided and managed. My advice to that newcomer at the time was to split 800U into three parts, each with its own mission:
300U for day trading: focus only on the two main coins, BTC and ETH, looking for small fluctuations each day, making 3-5 points and then exiting without being greedy. The significance of this money is to maintain market sensitivity while accumulating small profits.
300U for swings: patiently wait for high-certainty opportunities, such as important ETF news announcements or around Federal Reserve meetings. Once you make a move, hold for 3-5 days, aiming for stable swing profits, not quick entries and exits.
400U as a trump card: this is your lifeline and your confidence for future recovery. Regardless of whether the market is in a panic drop or a fervent rise, this money must not be touched.
Surviving is more important than anything else. Always having extra money in your account allows you to maintain a proactive mindset and avoid being forced to cut losses at the lows.
2. Only gnaw on the big meat, not the sesame seeds.
90% of the time in the cryptocurrency market is boring, with not many truly worthwhile trending opportunities. Frequent buying and selling not only fails to make money but also contributes to the exchange's fees.
When there is no clear trend, the best strategy is to lay low. Watching dramas and studying are much better than blindly operating in the market. You must learn to 'play dead most of the time, but take a big bite when the opportunity arises.'
How to judge when a trend is coming? Some simple technical signals can be referenced, such as whether BTC can stabilize at key support levels or whether ETH breaks through previous highs with volume. Once the trend is confirmed, you must act decisively.
After making a profit, it is important to lock in the profits promptly. My rule is that when the floating profit reaches 15% of the principal, first sell half and pocket the principal or part of the profit. Only what lands in your pocket is real money; the numbers in the account are just floating gains. The premise of 'letting profits run' is to ensure that you always have a safety cushion.
3. Follow the rules, don't let emotions take control.
This is the most crucial point, and it distinguishes professional players from amateur ones. Trading is not based on feelings, but on a cold, hard set of rules.
I have set strict rules for myself and require the newcomers I train to follow them strictly:
Set the stop-loss firmly at 1.5%: as soon as the price hits this point, cut the position immediately without any lucky thinking. A single large loss can wipe out ten times of accumulated profits.
When profits exceed 3%, first reduce the position by half: cash out part of the profit, and set a break-even stop-loss for the remaining position, allowing the profits to run. This way, you can keep the victory while not missing out on potential larger trends.
Never average down to reduce costs: this is the most harmful bad habit. Losing trades often prove that your initial judgment might be wrong; continuing to add to your position will only make the hole bigger and your mindset more unstable.
You don't have to be right every time, but you must do it right every time. The essence of making money is to let established rules govern your every trade, rather than letting temporary greed or fear influence your decisions.
Dollar-cost averaging: the 'foolproof method' to navigate bull and bear markets.
In addition to active trading, for working individuals who don't have much time to monitor the market, dollar-cost averaging is also a 'lazy investment method' worth considering.
Its core logic is not to have you buy at the lowest point, but to average your holding costs through regular and continuous buying, avoiding being stuck for a long time after buying high in one go. More importantly, this mechanical operation can 'trick' your brain into ignoring short-term price fluctuations, allowing you to hold on and truly enjoy the power of long-term compound interest.
For dollar-cost averaging, choose mainstream assets with high volatility and good long-term prospects (such as BTC, ETH), using spare money to start buying during bear markets or when the market is sluggish, and sticking with it for a sufficiently long time is key to success.
Conclusion: Rules are the hard truth.
In the cryptocurrency world, having little principal has never been a problem; the scary thing is always thinking about 'going all in and getting rich overnight.' The experience from 800U to nearly 30,000U tells us that the opposite of success is not failure, but rashness and greed.
Not greedy, not panicking, and following the rules—these three points may seem simple, but they are lessons that many have learned with real money. In this highly volatile market, being able to survive and consistently profit with your discipline and system is what truly makes a strong trader.
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