Aoyi Capital: Why Can't Small Funds Grow Big?

The core issue for most small funds like mine not being able to grow is not about not knowing how to trade, nor is it about not being able to watch the market and place orders, but rather about overcoming the inner fear.

As soon as opening a position involves one's own money, especially money that affects basic living, once there is a floating loss, it feels unbearable, and when there is a floating gain, one thinks about running away with the profit immediately. This is no longer trading according to the market but being led by one's own capital.

I hit a wall at 200,000, and I'm talking about RMB. My initial goal was to earn enough from trading to buy a car, either a Model 3 or a Xiaopeng P7. At that time, I hadn't even obtained my driver's license, just dreaming of owning a nice car.

Then, when I reached 200,000+, I couldn't break through. People are quite pathetic; on one hand, I thought this money was enough for me to save for five years, which was already great, so I should stop after getting a car. On the other hand, I kept thinking that if I doubled it, I would have both a car and 200,000 in capital.

I always died at this wall. On the road from 200,000 to 400,000, I failed countless times. Losing a little made me panic, treating this money as my actual capital. The more I lost, the more I wanted to recover it, ending up trading on borrowed money, essentially just being a pure gambler.

My subsequent trading career was always burdened with debt; even when I reached 500,000 or 600,000, I never cleared the debts, until last year when I was on the road to 1,000,000, slowly paying off all online loans, credit cards, and other debts. Once the debts were cleared, all psychological burdens were thrown away - 2,000,000 - 3,000,000 - 5,000,000 - 8,000,000 - 6,000,000 - 5,000,000 - 9,000,000 - 10,000,000 - 15,000,000. Even if there were pullbacks in between, it didn’t take a week to reach new highs in profit. My mindset changed; I only needed to focus on the market itself, which opened up my trading limits.

I believe the ceiling of trading ability is not about trading skills at all. Now, it has become almost instinctual. It feels like trading is just about trading mentality, trading character, and trading logic.

I have basically never opened a position at any absolute top or bottom, but in the long run, I can make money.

Everyone has their own wall; most people are stuck at a certain amount of capital and can't move up anymore.

I have managed to grow small funds; I have traded small-cap, mainstream, and trending meme stocks. Now, do you see me still trading? At most, I have increased my position in Dogecoin to 10,000. Now, large positions are focused on Bitcoin and Ethereum.