Xiao Zhang, new to the battlefield, was once a typical 'all-in gambler': 20,000 U, fully leveraged, evaporating 45% in 3 minutes—when the market came, he went all in, and when the direction was wrong, it went to zero.
I made him stop the madness and do one thing: write a 'position diary.' Plan before the market opens, review after it closes. On the 7th day of writing, he had an epiphany: 'Direction determines whether you win or lose, position determines how long you survive.'
So, I gave him three keys to survival and growth:
1. Light positions to test the waters, prioritize survival: Initial position ≤ 35% of capital, single loss ≤ 3%. Following the rules for the first time, he lost 400 U, but the account still had 70% ammunition left. At that moment, he understood that 'preserving the green mountains' is a hundred times more solid than the illusory 'dream of getting rich.'
2. Add to winning positions, let profits run: When profits ≥ 5%, add one level; when ≥ 10%, add another level, only using profits to snowball, not touching the principal. A week later, the market started, he added to his position with a 7% profit from the base position, and the next day he added more. A small position is like a seed, growing into a big tree with the right momentum.
3. Strict execution, secure profits: Set stop-loss points in stone, cut immediately when triggered. Take profits in three steps: 50% target to harvest, 30% breakeven line for defense, 20% to let go and chase the trend. Once, during a surge at dawn, he set his take-profit orders and slept soundly, waking up to a net increase of 16,000 U in his account. In contrast, his companions who did not set orders saw 70% of their profits evaporate.
After 15 days, the results were astonishing: average daily trades dropped from 15 to 4, with a win rate of only 43%, but the profit-loss ratio reached 3.8:1, and the account peak exceeded 100,000 U.
He wrote at the end of his diary: 'In the past, I stared at the screen, only seeing the fluctuating candlesticks; now, I watch the market, with a flowing position in my heart.'
The secret to turning around small funds is not a reckless gamble, but cautious testing with light positions, the wisdom of adding to winning positions, and the discipline of mechanical execution. The market is never absent, but the rhythm is fleeting. True growth is learning to light an unextinguished lamp for oneself in the darkness of the market with rules.