Holding less than 2000U in hand, scrolling through the endless profit screenshots in the circle, aren't you feeling itchy? Afraid of losing everything in a day if you enter the market, but also scared of missing out if you don't? Stop! Old Ma is going to be honest today: the cryptocurrency industry is not a game of chance. The smaller the capital, the more you need to engrave the word 'stability' into your bones. Fans who have worked with me all know that turning a small capital around relies not on luck, but on solid practical rules.
Last year I met a fan who had just graduated and saved 1300U. Every day he chased me to send voice messages asking, 'Can I go for it?' His tone was full of anxiety, saying he was afraid that a single operation would wipe out the savings he had accumulated over half a year, and he would be back to square one. I told him at that time: 'Don't be greedy, stick to the few rules I give you; it's ten times more reliable than blindly following the crowd or listening to rumors.'
And the result? After four months, he came back excited to share the good news, and the account directly broke 16,000 U; in half a year, it rose to 35,000 U without hitting a single liquidation! Some say this is just luck? Ha, if luck could last for half a year, I would have already laid flat with my followers. Behind this, are the three 'life-saving money-making' iron rules I honed over ten years of trial and error in the industry, which I am sharing for free today.
Iron Rule One: Split the funds into three parts, leaving a way out for risks.
The biggest taboo for small principals is 'going all in'; I have never let any of my followers put all their money in. Take that 1,300 U follower as an example; I gave him a simple and direct allocation plan that everyone can follow:
400 U focuses on mainstream coins for intraday volatility games: as long as the price fluctuation reaches 3%, decisively take profits; never be greedy or cling to the position, take a small profit and leave; accumulate little by little.
500 U for 3 - 5 days of swing trading: do not pay attention to short-term small fluctuations, wait until the K-line gives a clear signal (such as breaking through resistance or stabilizing after a pullback) before moving, if there’s no signal, stay put, never trade blindly.
The remaining 400 U is the 'hidden funds': this part of the money must not be touched even in extreme market conditions! It is not for making money; it is to give you the confidence to maintain your mindset in the market. Even if the first two amounts lose, you still have the capital to turn things around.
I've seen too many novices go all in and get excited about adding positions after a two-point rise, and panic sell after a three-point drop. Within a month, their principal is guaranteed to be gone. Remember, small principals need to 'accumulate little by little,' not 'get rich overnight.'
Iron Rule Two: Only follow the trend, not waste time with fluctuations.
There is a truth in the industry that no one dares to say: 70% of the time in the market is spent in frustrating sideways fluctuations, while only 30% is the real trend where money can be made. Many novices fall into the fluctuation trap, checking the market every half day, and can't help but act on small fluctuations, resulting in paying a lot in fees without any gains, it's not trading, it's clearly working for the platform!
Lao Shi's principle is 'do nothing without a signal, but charge when there is a signal.' What is a clear signal? For example, when mainstream coins stabilize at key moving averages, trading volume suddenly increases, and MACD golden crosses form, that is the moment worth taking action; if the K-line is oscillating within a small range, even if you are itching to poke the screen, you must hold back.
Additionally, there is a small rule for securing profits: when the account profits reach 15%, take out half of the earnings first! The money in hand is yours; don't always think about 'selling when it goes up a bit more.' Those who are greedy in the market often end up losing even their principal.
Iron Rule Three: Rules suppress emotions; never hesitate to cut losses.
The biggest fear for small principals is 'emotional trading': losing leads to wanting to average down, gaining leads to wanting to add positions for more; these are all signs of falling into a trap! I set three strict rules for myself and my followers that no one can break:
Single trade stop loss must not exceed 2%: when the point is reached, you must exit, even if the market skyrockets the next second, never regret; preserving the principal is more important than anything else.
When profit exceeds 4%, first reduce half of the position: the remaining position can follow the trend, letting the profits run, but never be greedy to increase the position.
Never average down on losses: averaging down is not 'saving the situation'; it turns small losses into large losses, and ultimately is the culprit for liquidation.
In the early years, I also suffered from emotional losses; my 1,000 U principal shrank to only 200 U because I kept averaging down. That experience forced me to develop this iron rule. That 1,300 U follower strictly followed this rule, cutting losses promptly during small losses several times, which kept him on track, allowing him to eventually reach 35,000 U.
To be honest, having less than 2,000 U in principal is not scary; what’s scary is the constant desire for 'a big turnaround'. The 1,300 U turned into 35,000 U, not because of good luck, but due to the patience and self-control of following the rules.
Later, I will share specific strategies corresponding to different principals, such as how to layout within 1,000 U and how to interpret the entry signals for mainstream coins. If you want to avoid pitfalls and liquidations in the cryptocurrency market, hurry up and follow; the next update will be pushed directly to your homepage. Following Lao Shi is much more reliable than blindly exploring on your own or paying tuition.
How much principal do you have in hand now? The most common mistakes in trading are being greedy or hesitating to cut losses. Let's discuss in the comments, #加密市场回调