With only a few hundred U in your account, can you only be a 'scalper' in the crypto market? Do you think that having little capital means you can only gamble on altcoins and rely on luck?
As a cryptocurrency analyst with 8 years of experience, I have seen too many retail investors starting with a few hundred U: some lose everything in three days by betting on altcoins, some rush to double their money and frequently get liquidated. However, there are 37 students who followed my 'survival rules,' starting with a minimum capital of 300 U and growing it to 23,000 U in half a year — the core is not whether you guessed right or wrong, but whether you can 'survive to earn.'
The cryptocurrency market is never a casino, but a battlefield where 'the survivor takes all': the less capital you have, the more you need to rid yourself of the gambling mentality of 'a chance at a comeback.' Be patient like a hunter, first protect your capital, then earn guaranteed profits. These three ironclad rules that I have verified in practice, posted on the screen, are more effective than any market analysis:
1. Three-Stage Positioning Rule: Always leave yourself an exit.
The fatal flaw of a few hundred U is 'one loss, and it's gone.' I never allow students to operate with all funds; instead, I split the capital into 'operation fund + trend fund + safety fund,' with proportions flexibly adjusted based on the initial capital (taking 500U as an example):
100U operation fund: only trade 2 mainstream assets, avoid any new concept coins. Set a 2% volatility threshold—sell when it hits the target on the upside, run when it touches the line on the downside, never hold on to the illusion of 'waiting a bit longer'; this part only earns 'certain small money';
200U trend fund: do not watch short-term K-lines, only wait for daily signals—either break through key resistance with volume or pull back and stabilize at the support line, and never hold positions for more than 7 days. This part is where 'big money is made,' but you must wait for 'clear signals' to act;
200U safety fund: no matter how enticing the market is or how the pullback seems 'bottomed out', absolutely do not act. This is your 'comeback fund'; even if you encounter two extreme spikes, you can still preserve the capital to bounce back.
Remember: those who go all in can be out of the game with a single accident; those who leave enough safety funds can endure bear markets and reap benefits in bull markets.
2. Reject ineffective trades: only eat the 'big pieces of meat' from the trend.
In the cryptocurrency market, 80% of the time is spent in sideways fluctuations, frequently opening positions and chasing highs and lows. My rule for students is: trade no more than 3 times a week; if there are no signals, 'close the software and step away from the screen.'
My entry standard is 'three confirmations'; if one is missing, I do not engage:
4-hour K-line stands above the 20-day moving average (bullish) or falls below the 20-day moving average (bearish);
Trading volume exceeds the average of the previous 20 days by more than 50% (capital entry signal);
MACD indicator forms a golden cross/death cross on the same side of the zero axis (trend confirmation).
Profit handling also has rules: when profits reach 15%, immediately withdraw 70% to a safe account for peace of mind, and set the remaining 30% for 'trailing stop loss'—as long as profits retract more than 5%, regardless of how the market moves afterward, liquidate directly. Better to earn less than to give back 'profits in hand.'
In a consolidation period? Directly uninstall trading software, go read books, exercise, and focus on your main job—your time is worth much more than those 'fluctuating small profits.'
3. Lock emotions with iron rules: never engage in 'gambler-style operations.'
The most common mistake small retail investors make: when losing, they increase their positions to average down; when making money, they become greedy and want to fight on, forgetting the rules they previously set as emotions rise. The first thing I ask my students to do is to 'turn the rules into mandatory directives':
Set a mandatory stop loss: if a single trade loses 1.5%, the trading software will automatically close the position, and opening new positions is prohibited for the day (this can be set with tools, or have a friend set a password to lock it);
Never average down on losses: remember, averaging down is not 'saving the situation', it's 'feeding losses', which will only deepen your predicament;
Eliminate the thoughts of 'catching bottoms' and 'escaping tops': a few hundred U of capital cannot withstand any black swan; what we need to do is 'go with the flow', not 'fight against the market.'
I have seen too many cases of accounts going to zero; none were due to 'misreading the market,' all were due to 'discipline collapse'—the market can be wrong, but discipline cannot be compromised. Relying on emotions will eventually lead to being harvested by the market; relying on a system to manage will allow for long-term survival.
A few hundred U is really not scary; what’s scary is treating it as 'gambling capital' rather than 'starting capital.' Among my students, some started with 300U, slowly rolling it with these 3 rules, and now can cover their rent through crypto investment; others avoided 3 black swans with 500U, and now their account is 18,000 U, still steadily compounding.
I am A Qiang, focused on the cryptocurrency market for many years, sharing useful and diverse professional knowledge. To those fated, if money doesn’t cross your path, who will? Follow A Qiang, and I will help you unlock those things in the circle and clear the fog of the cryptocurrency market. I hope our encounter is filled with kindness and rewards!
