In early December, I came into contact with a newcomer named Xiao Yang, who had 1100U in his pocket. He was intimidated by the leverage ratios on the contract interface, fearing that opening a position would trigger a margin call.

Last week, the number $BTC fell sharply by 4000 dollars due to a series of liquidations within an hour. Recently, it has been fluctuating in the 92000-94000 dollar range, and many newbies following the trend have all been harvested, but he relied on a "survival framework" to boost his account to 13,000U in 15 days without experiencing a single liquidation.

Small funds should avoid treating exchanges like casinos and adopt an all-in mentality with hopes of taking a gamble. Those who can really grow small capital rely on three iron rules.

First, dividing funds is the bottom line.

Split the principal into three parts: 1/3 for day trading, focusing on mainstream coins like BTC and ETH. Recently, ETH surged over 5% in a single day, so take advantage of a 3%-5% fluctuation and exit quickly using limit orders;

1/3 awaits short-term trends, such as entering the market after BTC stabilizes at the 90000 dollar support level in early December, making trend trades for 3-5 days, with a current basis compression, and a lower leverage configuration is more stable;

The last 1/3 should be kept as reserve funds to respond to spikes or margin calls, and must never be touched.

Second, only follow trends and avoid fluctuations.

Currently, BTC's volatility is close to historical lows, with 70% of the time spent in a sideways trend. Opening positions during a sideways market is just paying transaction fees to the platform.

Xiao Yang watched the 4-hour chart of BTC for the past two weeks, refraining from engaging in the sideways market, and only entered the market after it broke the 94000 dollar resistance level on December 10, capturing a 12% rise in one go.

When profits reach 10%, he reduces his position by half, prioritizing recouping his principal.

Third, discipline is more important than the market.

I have always emphasized three red lines to him: immediately stop loss if a single loss exceeds 2%, even if there is a subsequent rebound, do not regret;

When profits reach 4%, first reduce the position by half, leaving the rest to run with a take-profit order; never add to a losing position to avoid being trapped by emotions.

In my view, whether small funds can grow is never about guessing the market but relying on strict rules.

Currently, there are strong expectations for the Federal Reserve to cut interest rates, yet the implied volatility of BTC options is at a historical low. Many veteran players have fallen due to greed and luck,

Only by embedding discipline into their bones can one survive and thrive in the crypto space.

Follow me for practical combat skills that can be applied, see you in the Binance chat room.