Beginning: The Truth About Small Capital Comebacks - Difficult, but Traceable
Many friends ask: 'How difficult is it to turn a few thousand yuan into a million in the crypto world?' My answer is: Easier than climbing to the sky, but harder than walking. The difficulty is not the small amount of capital, but that most people trade with a gambler's mentality, treating the market like an ATM, forgetting that it is more likely to devour their principal.

I started with 3,000 yuan, and now I have realized the outline of financial freedom. Today, I won't talk about 'the myth of getting rich quickly,' but will share the hardcore logic that helped me survive and steadily make money. These experiences are worth more than any K-line indicator.

I. Capital Management: Survive first, then qualify to talk about profit.
The most common mistake for beginners is going all-in at once. If you bet right, you are ecstatic; if you bet wrong, it goes to zero. I have suffered this loss and later made a strict rule: divide the principal into five equal parts, using only one part to enter each time.

Why five portions? Even if you make mistakes five times in a row, with a stop loss of 10% each time, the total loss only accounts for 50% of the principal, leaving room for a comeback; but as long as you grasp a trend once, the profit from one portion can far exceed 50%.

Stop losses must be 'cold-blooded': If a single loss reaches 10%, exit immediately. Don't think 'what if it rebounds'; the market is not short of opportunities, but lacks the patience to preserve capital.

I've seen too many people become deeply trapped from floating losses because they 'couldn't bear to stop loss,' ultimately despairing and cutting their positions. Remember: The first goal of trading is 'not to lose everything,' and the second is 'to make money.'

II. Trend is the best friend, but also the fiercest enemy.
'Going with the trend' sounds like nonsense, but it filters out 80% of invalid trades.

Don’t go against the trend: During market downturns, 'bottom fishing' is often a trap. For example, during the 2022 bear market, some people called 'the bottom' at 30,000 dollars for Bitcoin, only for it to drop to 15,000; conversely, entering at 28,000 after a rebound in 2023 was much safer.

Using moving averages to judge trends is more reliable than 'feelings': I often use the 200-day moving average (EMA) as a 'trend filter' - if the price is above the moving average, it indicates a long-term upward trend, so only go long; if it falls below the moving average, either stay out or take a small short position. No matter how crazy short-term fluctuations are, don’t go against the long-term trend.

III. Choosing Coins: Avoid 'shooting star coins', embrace 'slow bull bones'.
Novices love to chase skyrocketing coins: 'Look, it has risen 50% in a day; if I don't buy now, it will be too late!' But I have to say: The end of a surge is often a crash.

For both mainstream and altcoins, if the short-term increase exceeds 30%, first ask: 'What is the value support? Is it a technological breakthrough or are funds pushing the price to cut retail investors?'

What can really rise over the long term is often 'slow-burning': Prices steadily climb along the moving average, and trading volume gradually increases, rather than shooting up like a rocket - the latter is either manipulated stocks or emotional speculation, where retail investors end up as bag holders.

IV. Technical Analysis: Don't treat indicators as sacred edicts; use them as tools.
Many people are obsessed with indicators; the more they look at MACD and Bollinger Bands, the more chaotic it becomes. I only focus on two core aspects:

The 'zero axis rule' of MACD:

When DIF and DEA cross above the zero axis and break upward through the zero axis, it is a bullish signal (indicating a shortage of bears);

When a death cross occurs above the zero axis and breaks downward through the zero axis, decisively reduce positions (bulls retreat).

The 'cycle code' of moving averages: There are no universal parameters, but the combination of 20-day, 50-day, and 200-day moving averages is useful.

20 Days: Look at short-term trends, suitable for quick in-and-out trades;

50 Days: Look at medium-term trends; when it pulls back nearby, if the volume increases and stabilizes, it is an opportunity to add positions;

200 Days: Determine the long-term direction; if the price is above, don’t short easily.

But remember: Indicators are the 'rearview mirror' of market sentiment, not the 'navigation system'. For example, a golden cross may signify a real breakthrough or a trap to lure buyers; it must be judged comprehensively in conjunction with trading volume and trends.

V. The core of retail investors making money: Resist human nature, not defeat the market.
Retail investors lose money, often not due to poor skills, but because they succumb to emotions:

Understand trading volume, reject 'low-volume markets': Only with volume is there price; a rise without volume is a 'castle in the air'. If a certain coin suddenly rises by 10% but the trading volume is lower than usual? It's highly likely that it's a manipulation; don't chase.

Set buy and sell points in advance; don’t just act on impulse: Before buying, ask yourself: 'Under what circumstances must I sell? How much loss will trigger a stop loss? How much gain will trigger a take profit?' Write it down and strictly adhere to it. Too many people want to earn more when prices rise and wait for rebounds when they fall, resulting in profits turning into losses.

Learn to endure and give up:

Floating losses are not losses, as long as the logic is intact, endure the fluctuations (provided the position is light);

Do not touch rises that do not conform to your trading logic, no matter how high they go - earning money within your understanding is more solid than anything.

Conclusion: The market never lacks opportunities; what it lacks are people who can 'wait it out.'
Lastly, I want to say: Turning a few thousand into a million is not about 'catching one big surge,' but about accumulating compounding gains through continuous small wins. I've seen too many people lose all their savings over a year, and others who, over five years, turned 5,000 yuan into 800,000 with a steady strategy.

The cruelty of the cryptocurrency market is that it amplifies your greed and fear; but its fairness lies in the fact that as long as you establish your own trading system, even with small capital, you can gradually enjoy the dividends of the trend.