In the cryptocurrency market, many small investors often bring a few hundred dollars into the market with the hope of quickly 'turning the tables'. However, in reality, most find themselves in a situation of account depletion just after 1-2 weeks. The core reason lies in the lack of a capital management strategy, inability to control risks, and being easily influenced by emotions.

An effective method adopted by many is to divide capital into smaller amounts, combining multiple trading strategies in parallel, prioritizing safety - discipline - stability. This strategy does not promise 'getting rich overnight', but brings sustainable growth potential, gradually accumulating to achieve financial freedom.

1. Core Principle: Divide Capital into 3 Parts – First and Foremost is 'Survival'

For example, with 1,200 USDT, split it into 3 equal parts, each part 400 USDT, with a clear purpose:

  • 400 USDT for short-term trading:

    • Only execute 1 order per day.

    • Profit target of 3–5%.

    • When reaching the target, take profits immediately, close the trading application, avoid being drawn into further fluctuations.

  • 400 USDT for medium-term trading:

    • Patiently wait for a breakout at resistance or a breakdown at support within the daily frame.

    • Always set a stop-loss immediately upon entering an order.

    • Profit target from 10% onwards for each market cycle.

  • 400 USDT for long-term holding:

    • Keep fixed as 'rescue fund'.

    • Do not get swept up by market fluctuations.

    • Avoid 'all-in' to not cut off future options.

2. Understand Market Nature: 80% of the Time is Just Random Fluctuation

  • When BTC is sideways for 3 days, it’s best to stop trading, not to let the 'itchy hands' mentality cause unnecessary fees.

  • Only enter a position when:

    • A volume breakout occurs, or

    • Price stabilizes above the 30-day EMA with a clear stop-loss.

  • When profits reach 20% compared to the initial capital, immediately withdraw 30% to a cold wallet to secure the gains and reduce retracement risk.

  • Remember: stay calm most of the time, act decisively when opportunities arise.

3. Emotional Discipline: Say No to Impulsiveness

Before opening a position, always write down 3 trading scenario lines to avoid being swept along by the market.

  • Stop-loss set at a 2% loss level. If hit, must cut immediately, absolutely do not hold hope for recovery.

  • When profit exceeds 4%, close half of the position, and set a trailing stop for the remaining part to lock in profits.

  • Do not average down on losing days, because that action only speeds up the loss.

4. Long-Term Thinking: Slow is Fast

The weakness of many small investors does not lie in the small capital, but in the mentality of wanting to get rich quickly. In fact, sustainable growth depends on:

  • Risk management.

  • Balancing probabilities.

  • Strict discipline.

If a few dozen dollars of fluctuation has caused insomnia, one needs to train discipline and master the 3 strategies above before thinking about the power of compound interest. Stability is the only path to growth.