Last year, a brother came to me crying with 1500 as startup capital, saying that if he couldn’t turn things around, he would have to roll up his mat and go work on the construction site, and he could barely afford instant noodles. I didn't get into any complicated theories with him, just threw out three 'unsympathetic' hard rules. As a result, this guy persisted for 90 days and managed to grow his account to 60,000, with not a single liquidation throughout! Today, I’m sharing this bottom-line stuff; how much you can comprehend depends on your own fortune, after all, in this circle, surviving is more important than anything else.
1. First learn to 'cut the cake', then talk about 'making big money': learn to 'cut fingers' so you won't 'lose your head'
I am most annoyed by those who come in and go all-in aggressively, fantasizing about a turnaround every day, but end up being directly 'blown away' by the market nine out of ten times. At that time, I told that brother: split your 1500 units of capital into three parts, give each part a 'little home', absolutely do not allow them to visit each other; this is the first principle of survival!
1. Quick knife capital (500 units): specifically for short-term trading, at most two trades a day, regardless of profit or loss, finish the job and call it a day. Don't think about 'earning a bit more'; short-term trading is about probability, greed will lead to loss;
2. Lying down to earn trend funds (500 units): the core is one word 'wait'! Absolutely do not enter the market without clear trend signals; until the weekly line shows an upward trend, just honestly play dead, even if others are making a fortune, don't be envious;
3. Life-saving bottom warehouse (500 units): This part of the money is your 'lifesaver', specifically for dealing with sudden fluctuations. If one day you really encounter extreme market conditions and are forced to exit, use this part of the funds to fill the gap that day, ensuring you can stay at the table—remember, in this circle, staying alive gives you a chance; once out, it's all in vain.
All in? Don't even think about it! Occasionally 'cutting off a finger' (small loss exit) is not scary; at least it can grow back; but if you 'lose your head' (liquidate), then it's completely over. This is the painful lesson I've summarized after seeing countless people fall into pits!
Two, only eat the 'fattest meat', don’t gnaw on 'thorny bones': treat volatile markets like a 'turtle retracting its head'.
Many novices run after the market every day, operating blindly during fluctuations, but when the trend comes, they don’t dare to enter; in the end, they don't make money and lose quite a bit of principal. I told that brother: volatile markets are 'leek harvesters', nine out of ten will be left with only their shorts after going in; we won’t join that excitement! My signals are just three, simple enough for even a fool to understand:
1. Daily level moving averages not lined up (not in a bullish arrangement), just honestly stay in cash like a 'salted fish', even if you see others posting profit screenshots daily, don’t lose your composure;
2. Only take action when two conditions are met: first, a significant breakout past previous highs, and second, the daily close is stable; this is the first signal to get on board; all three elements—stability, accuracy, and decisiveness—are essential.
3. When profits reach 30% of the principal, immediately take half and pocket it! For the remaining part, set a 10% trailing stop to take profits; how much you earn depends on the market’s mood. Don’t always think about 'selling at the highest point'; the market will always have the next bus; we don’t rush the door, just catch the free ride.
Three, lock up the 'glass heart': be a 'mechanical operation monster' to survive longer.
In this circle, emotions are the biggest enemy! Many people don't misunderstand the methods, but as soon as they see K-line fluctuations, they panic, hesitate when they should cut losses, and get greedy when they should take profits, ultimately relying on luck to operate, it's a wonder they don't lose. I told that brother before entering the market, he must write down the 'iron law of operation' and strictly enforce it:
- Set the stop-loss line at 3%, and as soon as it hits, exit automatically; don't argue with the market, and don't look for any excuses;
- When profits reach 10%, immediately pull the stop-loss line to the cost price; the profits afterwards are the 'gifts' from the market; earning is a blessing, and losing does not lose the principal;
- Turn off the software at 23:00 every night! No matter how enticing the K-line looks, or how big the opportunities others say are, never watch the market. If you can't sleep, go binge-watch dramas or play games; if you really can't resist, just uninstall the app; out of sight, out of mind.
Honestly, the more mechanical and boring your operations are, the longer you will survive in this circle. Those who chase highs and lows daily, driven by emotions, have long become someone else's 'transaction fee'.
Lastly, let me say something heartfelt: survive, and then you are qualified to talk about making money.
Many people ask me, from 1500 to 60,000, was it due to some 'godly trade'? I laughed, there’s no such thing as a godly trade; it’s all about 'making fewer mistakes'! The market has opportunities every day, but the capital is only once; don’t always think you can become rich overnight; first, make 'not getting liquidated' your primary goal.
I have seen too many novices who, upon entering, study wave theory and Fibonacci indicators every day, but end up not even knowing the most basic position management; in the end, they still lose terribly. Listen to me, first engrave these three iron laws into your bones, practice them well, and then think about those flashy things.
Remember: In this circle, you are not competing against the market, but against your own greed and fear. If you can control your hands and emotions, you have already beaten 80% of the people.
