If you don't want a day trip, read this article carefully, turning 3000 into 1 million, let me tell you something practical! See how I did it in one month
Compound interest with contract rolling+: from over 1100 USDT, equivalent to 8000 RMB, earning up to a million!
The core is one sentence: rely on contract trading to amplify returns!
Many people start trading contracts with only 10,000 capital (about 1400 USDT), thinking 'the capital is small, just do it'. But the truth is: the smaller the capital, the more position management is needed.
Large capital can rely on time, while small capital relies entirely on discipline. Otherwise, a single liquidation will require recharging 'faith'.
The following method is suitable for contract players with capital between 5000 and 20000 RMB, the goal is not to double in one day, but to have low drawdown and steady growth.
1. Core goal: not to get rich overnight, but to steadily compound interest
Small capital trading contracts, not for earning a BMW with each trade, but for earning a phone case every month, after 12 consecutive times it turns into an iPhone.
Compound interest rhythm:
Monthly target return: 10%-20%
Control the maximum loss per transaction to not exceed 2% of total account capital
Swing trading, allows holding for 1 to 5 days, with adjustments to stop loss in between
2. Four-step small capital position management
First step: segment the account, delineate the 'combat capital pool'
Account: 10,000 RMB ≈ 1400 USDT
Divide into 4 trading segments, each segment 350 USDT
Only use one of the segments for trading, the others remain unchanged
Essentially giving yourself 4 lives, if wrong there is a chance to be saved
Benefits: resistant to consecutive stop losses, will not lose all ammunition at once
Second step: control each risk at 1%-2% of total capital
Recommended practice: control single trade stop loss amount within 140 USDT (about 10%)
For example, trading BTC:
Difference between entry point and stop loss point = 500 USDT
Using 10x leverage means 50 USDT fluctuation
To not exceed 140 USDT risk, can open a maximum of 2.8 BTC contracts ≈ 3 contracts
→ This is the process of reverse calculating position size.
Remember a phrase: it's not about how many contracts you want to open, but how many the market allows you to open.
Third step: pyramid adding positions, only enlarge positions when in profit
If you go long from a low position and have a floating profit of 100 USDT, you can consider:
Add part of the position, continue to eat the trend upwards
Raise the stop loss to breakeven or even profit zone
The remaining part can attack freely, risk control has already protected you
This way, even if the market retraces, you can withdraw without injury.
Add positions only when there are floating profits; do not add when in loss!
Fourth step: market grading, determine position strength
3. Additional considerations for cryptocurrency contract trading
1. Leverage advice: no more than 20 times (here I mean the total leverage ratio of the account)
Leverage does not magnify profits, it magnifies mistakes
High leverage is suitable for ultra-short-term experts, not for swing trading
2. Transaction fees have a huge impact
It is recommended to choose large platforms and rebate links, do not frequently trade on high-fee platforms
Transaction fees will eat away most of your small capital compound interest profits
3. When volatility is extremely high, use light positions or even observe
When major news breaks or extreme volatility occurs, reduce positions by half
Small accounts have poor pressure tolerance, most afraid of big downward and upward sweeps
Four, a practical example: using 350 USDT to break through a wave of market
Select coins: DOT breaks through the box's independent structure and stands on a key platform / UNI breaks through the trend line / WOO's bottom keeps rising, forming an upward structure in the box / BTC does not break below 107200 for a long time and forms a new independent structure, meeting the entry standards in the trading system
Entry: Breakout platform retest confirmation on the right side, breakout box left side entry, breakout important trend line, left side entry
Stop loss: set stop loss at the lower edge of the platform, risk control within 100 USDT
Add positions: when the price breaks through structural positions or shows trend candlesticks, add half of the position when it pulls back to K, move stop loss to cost
Reduce positions: when the price experiences a rapid rise or approaches previous highs/resistance positions, take partial profits
After a wave, the account grows nearly 500%. This is the path small capital contracts should take—do not be greedy, do not be timid, do not rush.
Five, small positions are your secret weapon, not a shackle
Small capital is not the problem; misusing positions is the problem. You are not losing on technique, but dying from liquidation. Stable positions, stable emotions, stable operations.
Remember this phrase: 'Being able to win a trade is ability; being able to lose a trade is system.'
What small capital fears the most is not slowness, but death. First learn to survive, then slowly become stronger.
Xiao Xun only does real trading, the battle team still has positions available, speed up to join $BTC
