Small capital can also make a comeback

Many people always feel that starting late, having little capital, and lacking resources are the reasons they cannot succeed.

But the reality is—those traders with five or six-figure accounts, or even larger, mostly started with just a few hundred or a few thousand dollars and gradually built it up.

I have seen too many examples: some started with only 500 dollars, and through steady efforts and controlling drawdowns, they multiplied their investment several times in six months.

There are also those who have tens of thousands of dollars and still lose thousands in a day, unable to even preserve their principal.

Do you think this is luck? In fact, they understand the rhythm, have a strategy, and can control themselves.

For small capital to make a comeback, the following points must be achieved:

Step 1: Recognize the current situation, don’t fantasize about instant success.

Small capital does not qualify to compete on speed, and definitely cannot follow the crowd blindly. The most important thing now is to survive.

Step 2: Establish a trading system that suits you.

Determine whether you are doing swing trading, day trading, or medium to long-term trading. Don’t try to do everything; focus on one direction to practice with limited capital.

Step 3: Each trade must have a plan.

For small capital, each trade must be precise. Before opening a position, ask yourself:

What is the risk-reward ratio? Where is the stop loss? Where is the profit target? Is the current position reasonable?

Step 4: Control the rhythm, do less and observe more.

Market opportunities are not available every day. Small capital fears frequent operations and overtrading the most. Wait more, act less, and selectively choose the most promising opportunities.

Step 5: Learn to roll over positions, letting profits generate more profits.

When capital is small, do not rely on explosive profits, but on continuous accumulation. After profits are made, use the profits for the next trade; this way, even if you make a mistake once, it won't be devastating.

In this circle, only those who survive have the right to talk about making money. Having small capital is not scary; what is scary is not having methods, execution, or direction.

If you currently have limited funds, don’t be discouraged, and don’t panic.