"With a principal of less than 10,000 U, in the crypto world, it's like giving away your head." I've heard this so many times it has become a cliché. But last week, a newcomer in my community sent me a transaction slip that slapped me in the face: entering at 800 U, reaching 30,200 U in 5 months, never touching the liquidation line the entire time.
After 5 years in the industry, I've seen too many big players with a million in capital go all in and lose it all, as well as many ordinary people with small funds steadily making a comeback. To be honest, the crypto world is never short of opportunities; what it lacks is the survival logic for "newbies to avoid pitfalls." Today, I’ll break down his methods, all of which I have personally tested and can vouch for, so newbies can directly copy the work after reading this.
First rule: Divide the money into three parts, leaving enough 'money for a comeback'.
This is the 'capital firewall' that I repeatedly emphasize to students; you must never put all your eggs in one basket, especially with small capital, as the margin for error is too low. His 800U is divided as follows:
300U for 'fast, accurate, and ruthless' short-term trading, only focus on BTC and ETH, the two 'big brothers'. Don’t touch those flashy small-cap coins; they may look exciting, but they are traps for harvesting. Aim for small fluctuations of 3%-5% daily, such as entering when BTC retraces by 0.8%, and exiting as soon as it rises by 3 points. Like a cheetah catching an antelope, once you grab it, you let go; never be greedy.
300U when targeting 'sniper' and similar bands, solely focus on major news nodes. For instance, when the Federal Reserve's interest rate hike is confirmed, or when significant industry policies are introduced, the candlestick chart will show a clear trend. Last time, when ETF expectations heated up, he entered the market, held for 4 days, and made a 22% profit, which is much better than staring at the screen every day. Remember, in uncertain market conditions, it’s better to lie flat and watch a show than to impulsively open a position.
The remaining 200U is the 'key money', which is crucial for survival. When the market drops sharply, average down to lower the cost, and when it skyrockets, pull out in time to avoid risks. I’ve seen too many people invest their last penny, panicking and cutting losses at the slightest market pullback. Keeping some key money gives you the confidence to withstand the market.
Second rule: Only bite the 'big chicken leg', don’t pick up 'scattered sesame'.
The most common mistake newbies make is treating the crypto market like a 'flea market', going in and out every day. This student's strength lies in spending 90% of the time 'playing dead', waiting for that 10% precise opportunity.
What is a precise opportunity? For instance, when BTC stabilizes at the key support level of 28000, or when ETH breaks through the previous high, only then should you take action. Also, he has a strict habit: when profits reach 15%, he transfers half of the profit to a safe wallet. Don’t think about 'maxing out'; the crypto market is like a roller coaster; you never know where the peak is, so it’s safer to pocket some profits first.
I had a fan before who chased prices every day, trading more than 20 times in a month, spending over 800U in transaction fees, and ultimately losing 30% of his principal. Compared to this, 'lying flat and waiting for opportunities' is 100 times more reliable than 'busy trading every day'.
Third rule: Discipline in managing positions is 10 times stronger than relying on feelings to trade.
Small funds can reverse the situation; it’s not about luck, it’s about strict rules. This student established three 'hard rules', which I now have all new students write down in their notebooks:
1. Set a stop loss at 1.5% and cut immediately when it hits. This is a red line; even if you think 'just wait a bit for a rebound', you cannot touch it. It’s like firefighters extinguishing a fire; if they find they can’t control it, they must retreat. Holding on will only make it worse. He once entered BTC and it dropped 1.4%, just 0.1% away from the stop loss line, and he stubbornly held on for a rebound. Later, he told me, 'I will never dare to gamble again; I almost fell.'
2. When profits exceed 3%, reduce the position by half. Lock in some profits first; even if the remaining position retraces, you won’t lose your principal. It’s like a farmer planting; first, store away some grain before continuing to plant, giving you peace of mind.
3. Never increase your position when losing money. Many people think 'averaging down' when they lose, but they end up getting trapped more and more until they're forcibly liquidated. Remember, adding to a losing position is like adding stones to a leaky boat; it will sink faster.
Fourth rule: Regular investment lays the foundation, providing 'double insurance' for your principal.
In addition to short-term and swing trading, he also insists on weekly investing in mainstream coins, executing through automatic plans without needing to watch the market daily. This is actually the 'lazy strategy' I've been promoting; small funds don’t need to chase after 'getting rich overnight'. By averaging down costs through regular investments, the long-term returns can be quite substantial.
Someone asked me, will regular investment earn less? But think about it; compared to risking everything and facing liquidation, the guaranteed profits from regular investment are exactly what small funds need. This student earned 12% from regular investments over 5 months; although it’s not much, adding in the profits from short-term and swing trading, the overall return is quite considerable.
Finally, let me say something heartfelt.
800U can grow to 30,000U; there’s no 'exclusive secret', just 'don’t act recklessly, don’t be greedy, and follow the rules'. Newbies shouldn’t always envy others for making more profit; learn to 'stay alive' first to make money in the crypto world.
If you’re staring blankly at the candlestick chart right now, unsure when to enter, and worry about liquidation every day after buying coins, follow me#美SEC推动加密创新监管 $BTC $ETH .
