Family, who understands! I've seen too many friends who just entered the market, holding a few hundred or a thousand bucks, thinking they can 'gamble' and double it overnight. Over 90% of them just become cannon fodder for the market, and in the end, they don't even have their principal left!
As someone who has been in the crypto space for 8 years, my advice to small investors is: the smaller the principal, the more you need to engrain 'stability' into your DNA. Getting rich is not about luck; it’s about strategies that have been validated by the market. Last year, I guided a fan who started with over 800, following my rhythm and steadily growing it; in 3 months, he directly reached over 60,000. Now not only can he consistently profit, but he has also helped his childhood friend, who also has a small investment, to become 'stable'.
Today, I’m sharing my ultimate survival rules for small capital, all practical advice. If you understand and follow them, you can turn 'easy questions' into 'scoring questions.'
1. Capital allocation, firmly protect the 'survival line'
Don’t throw all your principal into trading! For example, if you have 1000 bucks, take out a maximum of 1/3 to operate — the remaining 2/3 should be either placed in low-risk investments (don’t let the capital sit idle) or locked away completely, firmly adhering to 'no increasing positions, no bottom fishing, no holding on stubbornly.' Remember: the primary goal of small capital is not to make money, but to 'survive.' Last year, a fan didn’t heed my advice and risked all 800 bucks, even adding positions against the trend, losing everything and exiting in 3 days. This is a lesson on not holding the bottom line.
2. Only chew on 'high certainty' meat; avoid the pits of volatility.
The market is not about 'blindly chasing' for profits; it's about 'waiting' for opportunities. I only seize opportunities that combine 'trend signals + volume support' when trading. In a volatile market, I would rather stay on the sidelines and enjoy a milk tea than follow the crowd to open positions. The bullets of small capital are too precious; like a sniper, wait until the target is clear before pulling the trigger — for example, clear breakout signals or support points after a pullback, which are the opportunities worth taking. Don't waste bullets in the back-and-forth of volatility.
3. Roll over profits; stop losses must be ingrained in your bones.
Once you make money, don't get carried away; if you lose money, don't hold on! My rule is: take 20% of the profits first and secure them, then use the rest to roll into the next trade — let the profits generate more profits, rather than risking the principal for a 'bigger gamble.' More importantly, every single trade must have a preset stop-loss line, and the loss on each trade must not exceed 3% of the principal! For example, if you operate with 300 bucks, you can accept a maximum loss of 9 bucks; once you reach that point, run — never hold onto false hopes. This is the core of not losing all your small capital.
4. Don't be greedy or fearful; learn to 'take profits when they are good.'
Many small capital players fall into the trap of 'greed': after making 50 bucks, they want to make 100 bucks; after making 100 bucks, they want to double it. As a result, when the market reverses, not only do they lose their profits, but they also end up losing their principal. I always tell my fans: 'What you can actually eat is meat; what floats in the sky are dreams.' We pursue 'compound growth,' not 'gambling for wealth.' Even if each time we only make 5%-10%, little by little, small capital can slowly turn into a big snowball.
To be honest, I've seen too many impatient small capital players, chasing highs and selling lows every day, ultimately losing all their principal; on the contrary, those who are willing to calm down and operate according to this method are gradually making progress. The crypto space has no shortage of opportunities but lacks 'those who can survive until opportunities arise.'
If you are also entering with small capital, stop rushing around; pay attention to me.
