Last month, a student named Minh texted me at midnight: “Hey, the method you taught is truly unbelievable. My small capital of 500 USD has now turned into 15,000 USD.”

I looked at the message, not surprised.

Because in the crypto market, newcomers who want to make real money have never relied on luck or 'taking risks'.

Everything depends on a repeatable trading framework – and the discipline to execute it.

Minh when he first entered was just like thousands of other newbies:
– Little capital
– Weak mentality
– Afraid of falling when buying
– Afraid of rising when selling
– Looking at the chart for 2 hours with sweaty hands

But only after 3 months, he turned the game around – just by following the 3 principles that I always consider the 'backbone' of small capital trading.

Three-Layer Capital Allocation: Wear '3-Layer Armor' for the Account

I strictly forbid newcomers from going all-in. A small FUD news is enough to blow away the entire account. Minh's 500 USD is divided into 3 clear layers:

(1) Flexible Layer – To Train Market Feel (120 USD)

Only trade top 10 coins, prioritize high volatility.
The rule is extremely simple:
– Profit > 2% is to take profits
– Do not hold overnight
– Do not regret when seeing prices continue to rise

This is not a layer for big profits, but a layer for reflex training – turning small into large.

(2) Main Layer – Profit Generator (180 USD)

Only enter when there are 2 confirming signals:
– 4h Kline breaks important EMA with significantly increased volume
– MACD creates a golden cross

Hold for a maximum of 3 days.
One time he made a profit of 7% and wanted to 'leave a bit more'.
I said to take profits at 60%, the rest set a trailing stop of 2%.
Result: Did not catch the peak but all profits were safely pocketed.

(3) Safety Layer – Backup Plan (200 USD)

Money is 'survival trust'.
Even with large fluctuations, do not touch it, unless BTC breaks the 200-day EMA.

Thanks to this layer, when the market recovers, Minh still has capital to supplement – while many others have been wiped out.

Key point:

Capital allocation is not meant to be evenly divided, but divided according to risk levels.
Flexible → practice hands
Main focus → make money
Safety → stay alive

Two-Layer Trend Filter: How to Avoid 80% Sideway Traps

The crypto market is 80% sideways. Trading during this period only makes newcomers lose fees – lose patience – lose money.

I gave Minh a very strict filter:

Only enter orders when there are 2 conditions met:

(1) 1 hour appears with 2 long body candles with volume ≥ 150% compared to before

This is a sign of 'big money entering the market'.

(2) Weekly RSI touches extreme regions (≤30 or ≥70)

If this condition is not met = no trading.

One time Minh asked me:
“Brother, this coin seems to be about to pump?”
I said:
“Check the weekly RSI.”
The RSI was hovering around 50 → I banned entry.
Sure enough, that coin was sideway all week.

One avoided order = save a few percent of the account.

Ways to keep profits: Profit Taking Ladder

When profits run, I use the 'safety ladder':
– Profit 8% → withdraw 30% to cold wallet
– Each additional 2% → withdraw an additional 10%
– Hold the last 40% → trailing stop 2%

This is why 60% of Minh's profits come from the 'safe, durable' part and not from catching peaks.

Iron Discipline: Locking Greed & Fear

At the final stage, wins and losses are no longer due to techniques.

It lies in the psychology.

I made Minh write these 3 things on paper and stick them right next to the screen:

(1) Loss 1.5% → Cut immediately. Turn off the app. Rest for 1 hour.

Avoid the 'recovering' effect.

(2) Profit > 5% → Take 60%. The remaining part sets a stop-loss at the breakeven point.

Do not let profit turn into loss.

(3) Absolutely do not catch falling knives – do not average down when losing.

Even though 'it feels like it's about to bounce back'.

Once, when the coin was down 1.2%, Minh was about to click 'buy more'.
Seeing the note → stop.
30 minutes later, the price dropped another 0.3%, triggering the stop-loss.

Minh sighed with relief:
“If I had taken the risk then, my account would have only been 200 USD.”

From 500 → 15,000 USD Not a Miracle But a Result

Thousands of people look for 'quick rich tips', '100x coins', 'shark secrets'
– but overlook the simplest things: capital allocation – filtering signals – discipline.

Minh wins not because he is better than anyone else. But because he makes fewer mistakes than 90% of people in the market.

If you are also afraid of losses, fear volatility, fear being hit by the market, just carefully analyze these 3 principles and follow each step – you can also turn trading from 'gambling' to 'steady earning'.