How to operate with small capital?

Many people have complained that the principal is too small to recover, but real cases show that small capital can actually be the best training ground.

I started with 120U and, using the "small steps fast running" strategy, gradually rolled my capital to 500U, all with zero leverage and zero liquidation. The key is to abandon the fantasy of getting rich overnight and replace impulse with a system.

1. The core advantages of small capital: flexibility and low trial-and-error cost

Flexible position adjustment: Large capital needs to consider market impact when building positions, while 120U can enter and exit at any time to capture minute-level opportunities;

Low psychological pressure: Even if you lose 50%, it's only a loss of 60U, which doesn't affect life but allows for the accumulation of practical experience.

Counterexample: In 2024, a user bet the entire 120U on MEME coins and encountered a price drop to zero; whereas those who used divided accounts had a survival rate of over 80%.

2. The "small steps fast running" strategy: Three steps to lock in compound interest

Divided rolling: Withdraw the principal with each profit, let the profits run.

Split the 120U into three parts: 80U main account (trend trading), 30U secondary account (swing trading), 10U safety account (never to be used);

Withdraw 50% of the principal immediately after every 20% profit (for example: withdraw 12U after making 24U, leaving 12U for rolling).

Focus on high certainty opportunities

Only participate in daily-level breakthroughs (e.g., BTC stabilizing above MA30), with an average of ≤2 trades per day;

Avoid consuming in volatile markets, with over 60% of the time in cash.

Strict stop-loss: Single loss ≤ 3% of total capital

For example, if opening with 30U, set a stop-loss at 10%, and exit after losing 3U;

If there are two consecutive stop-losses, cease trading for the day to prevent emotional trading.

3. The pitfalls that ordinary people are most likely to fall into: Why do 90% of people fail?

Frequent trading: Data shows that those who operate ≥5 times a day have their fees erode 60% of profits;

Holding onto losses: Averaging down during a loss is the main cause of liquidation, as Zhang Jianping once emphasized, "small capital should avoid all-in trading";

Ignoring compound interest: A stable monthly return of 5% can double in a year, but most people pursue doubling in a single day.

If you often lose due to an unbalanced mindset, I can share the "Practical Checklist for Small Capital Recovery" (including divided account calculation templates + automatic stop-loss point calculations).

The most stable profit in the cryptocurrency circle is to leave the complexity to the market and keep the simplicity for yourself.