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An account is not scary, but the wrong method is true despair.
Last year, I met an investment novice whose account only had 1800U left. According to him: "I’m so hesitant to even move the mouse, fearing it will all be gone overnight." My only advice to him was—don’t treat this place like a casino; it’s about strategy and discipline here.
A month later, his account rose to 12,000, and in three months it directly surged to 80,000. There wasn't a single liquidation during this period. Some say this is luck? What I want to say is: this is entirely the result of disciplined execution.
Today, I will share three rules he has practiced, which may help you avoid some pitfalls.
**Rule 1: Position Sizing Method**
Divide 1800 into three parts, each part being 600. The approach is as follows: the first part focuses solely on intraday trading, only trading Bitcoin and Ethereum, with a profit target set at 3%-5%. Once reached, exit the position without being greedy. The second part is for swing trading, entering only when the trend is clear, generally holding for 3 to 5 days. This carries less risk but more stable returns. The last part is simply frozen as an emergency reserve, and no matter how hot the market is, it should not be touched.
I have seen too many people suffer the consequences of all-in trading—becoming intoxicated with small gains, but collapsing mentally with small losses. The traders who survive the longest understand one principle: having bullets left is worth much more than using them all up. The purpose of diversifying positions is not to earn more, but to live longer.
**Article 2: Follow the trend, not the market**
The market is mostly oscillating back and forth, and frequent entries and exits are equivalent to giving transaction fees to the exchange for free. So the rule is simple: wait if there are no clear signals, and act when there is a signal. As long as the profit reaches 12%, immediately cut half of the position to take profits.
What are the benefits of doing this? You feel secure, sleep well, and won't be anxious about the daily ups and downs.
**Article 3: Stop-loss must not be less**
Set a stop-loss line before entering the market, and exit without conditions once it is breached. Don't gamble, and don't wait for a rebound. This rule is the most tedious, but it is the most lifesaving.
Strategy is a hundred times more important than capital. In this market, survival is the top priority.