In the cryptocurrency market, many people 'burn' their accounts in just a few days due to greed and a lack of discipline. But there are also those who, by adhering to principles, can turn a small capital into significant profits. The story of turning 1,000U into 10,000U is not due to a complex 'secret', but just three basic iron rules – yet few can truly persist in implementing them.
The first rule: 'Three sources of capital, completely separate'
Anyone participating in trading must understand clearly – capital is life. Breaking down and managing capital helps avoid the risk of total loss after just a few wrong decisions.
A reasonable allocation can be as follows:
Part 1: 30% of capital (for example, 300U) is used for short-term trading – only one order is allowed per day. When a profit of 5% is reached, immediately stop.
Part 2: The next 30% of capital is reserved to wait for clear opportunities, only enter orders when the price reaches strong support, do not FOMO into the market.
Part 3: The remaining 40% is 'emergency money', absolutely not to be used – this is the shield protecting the account when everything goes wrong.
Initially, many people often wonder: 'With such little capital, when can I double it?'. But after witnessing many people 'burn' their accounts due to all-in, they understand that survival is the first step to success.
The second rule: 'Only make money in the main trend, avoid trading in volatile areas'
About 80% of the market's time is unclear trend fluctuations, only 20% is strong trending phases – and large profits usually come from that 20%.
During sideways market phases, it is best to step away from the screen, rest, or do other work. When the market lacks clear volume and direction, any action is just gambling.
Only when the price breaks out with significant volume is it a signal of the trend. At this point, entering at the right time can yield profits of 10–20% in just a few hours.
On the contrary, trading in volatile areas only causes the account to 'erode' little by little. Not trading is also a form of skill – patience is often worth ten times the impatience.
The third rule: 'Let the system control actions, do not let emotions control your hands'
The market is not wrong – only human emotions cause them to lose. Therefore, a clear discipline system is needed, forcing oneself to adhere to it.
Specifically:
Always set a stop loss at 3% for each order. When the price hits, you must close it immediately without hesitation.
When profits exceed 8%, immediately move the stop loss to the breakeven point or into profit to protect your gains.
Never cancel a stop loss order, even if the market seems 'about to recover'.
Many people fail not because of a wrong strategy, but because they lack the discipline to cut losses. One wrong order can wipe out ten correct ones. Cutting losses is not failure – it's a protective charm that helps you keep capital to continue playing.
Conclusion
These three rules may sound simple, but that simplicity is what makes them the hardest to maintain.
Separate capital to reduce risk.
Only act when the trend is clear.
And let discipline control actions instead of emotions.
In a market where 90% of people lose, the survivors are not the best, but the most disciplined. Turning 1,000U into 10,000U is not due to luck – but due to steadfastness, clarity, and principles.