The Survival Path for Small Capital: The Three No Principles!!!
For traders with a capital of less than 5000U, the most important thing is not to get rich overnight, but how to survive steadily and for a long time. The following methods helped a trader grow from 2500U to 36,000U (in 4 months), and subsequently stabilize their account to 70,000U.
1. Three-Fund Allocation Method (Iron Law of Capital Allocation)
Lightning Capital (800U): Only used in sudden market movements, such as during rapid price changes when macro data is released.
Trend Following Capital (1000U): Only participate in weekly trend opportunities.
Revival Capital (800U): If a liquidation occurs, take a two-week break immediately to avoid emotional trading.
2. Only Eat the "Body of the Fish"
Avoid False Breakouts: Stay away from the 5% range of previous highs/lows.
Wait for Pullback Confirmation: Enter when the 4-hour EMA20 pullback does not break.
Profit Locking Principle: When profits exceed 20%, prioritize withdrawing the principal.
3. Disciplined Execution
Stop-Loss Mechanism: Strictly control a 4% stop-loss for each trade.
Floating Profit Protection: When profits exceed 8%, move the stop-loss to the breakeven point.
Stop-Loss Weekly Limit: If weekly losses exceed 10%, you must stop and take a break.
Key Thoughts
The market always eliminates those who are "eager to recover their losses."
There are only 2–3 truly valuable opportunities in a month.
The survival time of capital is 100 times more important than short-term profits.
Remember:
3000U → 30,000U and 30,000U → 3000U are often the same path, just in different directions.
