From 70,000 to 4.2 million, I've stumbled through more pitfalls than you!

Not long after I entered the field, I was still working in a small county town, earning less than 3,000 a month. The 70,000 I saved was all my savings. At that time, like many others, I dreamed that the stock market would help me turn my life around. What was the result? I started off by stepping into three worthless, shady stocks, and my account was reduced to just over 50,000. During that period, I suffered from insomnia, hair loss, and nearly considered quitting.

But I wasn't willing to give up! I began to study the market intensively, analyzing every transaction and every candlestick pattern. Later, that 70,000 was transformed into 4.2 million over three years, not by luck, but through eight painful lessons.

1. Trade with half your capital, grinding down your cost is the way to survive.

Holding with full capital will eventually lead to being trapped. Holding half in stocks and keeping half in cash allows you to buy more when prices drop and sell when they rise, reducing your cost.

2. Not setting stop-loss means you can’t even protect your life.

Be cautious at a 5% loss, clear your position at 15% down, and you must exit if it breaks the 20-day line. Greedy people often perish in “just wait a bit longer.”

3. If the trend is there, take it; if the trend breaks, run immediately.

The most stable doubling stocks I’ve seen have one thing in common: they don’t break the 5-day line. If it breaks for two days without rising, don’t cling to it anymore.

4. The principal is life, profits are bullets.

The biggest loss I suffered was letting profits drop back down. Later, I set a rule: double the investment and immediately withdraw the principal, letting the remaining profit fly.

5. Avoid leverage, position size determines success or failure.

Don’t envy others’ 10x leverage; that’s gambling with your life. When my capital was below 100,000, I never allocated more than 20% to any stock. Stability is key.

6. Stop obsessing over news; focus more on candlesticks and volume.

Good news often serves as a cover for selling. Real price increases depend on steady volume growth. Some news is misleading; candlesticks don’t lie.

7. A decline over two or three days may actually be an opportunity.

If it hasn’t broken the 10-day line, consider buying at the low near the close, and take a small profit the next day. Short trades are the way out for small funds.

8. You only need to capture the main upward trends three times a year.

Trading every day will only lead to being harvested. True wealth comes from those few highly certain market movements.

From 70,000 to 4.2 million, I’m not a genius, just someone more willing to follow the rules. The stock market will not disappoint those who practice self-discipline.

If you’re also struggling in the market, give a thumbs up, share it out, and don’t let the true valuable insights be buried.