First, let me pour some cold water: Turning 5000 into a million by trading coins? This 'wealth myth' is 99% hype! However, as a trader who started with 300U and grew to eight-digit capital, I do have a set of controllable risk strategies. Today, I will only share practical advice, not motivational fluff.
1. Beginner's Start: Treat 300U as 'tuition'; first practice mindset before talking about making money
Don't gamble with all your capital! First convert 5000 RMB into 300U (approximately 2100 RMB), divide it into 3 parts of 'trial error funds,' strictly execute each part of 100U:
- Double and run; cut losses in half: Open a position with 100U each time, immediately close if earning 100% (to 200U), decisively stop loss if losing 50% (remaining 50U).
▶ Logic: Use small funds to validate trading logic. If you win three times in a row, you can roll it to 800U (100→200→400→800), but play a maximum of three rounds. At this point, the capital has reached 1100U, and you must stop immediately—this stage relies heavily on luck, and greed will lead to losses.
2. Advanced Strategy: How to scientifically allocate 1100U?
Divide the funds into three parts, using different strategies to cover short, medium, and long-term periods to reduce single risks:
1. Ultra-short speculation (100U, high-frequency trading)
- Choose mainstream coins like BTC/ETH and focus on 15-minute candlesticks
- Operation logic: Buy high, sell low + small profits from high sales
▶ Example: If BTC rises 1% in a short time, open a long position with 10x leverage. If it rises by 0.5%, exit (earning 5% of the capital). A maximum of 3 trades per day, stop after earning 30U.
2. Zen Dollar-Cost Averaging (15U weekly, long-term layout)
- Invest a fixed 15U weekly to buy BTC perpetual contracts (e.g., if the current price is 50,000 USD, bullish up to 100,000 USD)
- Core: Use 'spare money thinking' to withstand volatility, set 100x leverage but only open 0.1 lots (margin 15U), stop loss at 40,000 USD, take profit at 80,000 USD.
3. Trend Heavy Investment (remaining 985U, capture large market trends)
- Only take 'high certainty opportunities,' such as Federal Reserve interest rate cuts, ETH upgrades, etc.
- Operation steps:
① Check news + look at technical analysis (e.g., BTC breaking above the 200-day moving average)
② Open positions while setting the 'doubling take profit level' and '20% stop loss level'
③ Example: Open a long position with 10x leverage on 985U (worth 9850U), BTC rises from 50,000 to 60,000 earning 1970U (close after doubling). If it drops below 48,000 USD (loss of 20%), stop loss immediately.
3. Ironclad Risk Control: Survival rules are more important than making money
1. Position red line: A single position should not exceed 10% of the capital, always leave 90% of funds to withstand volatility
2. Stop loss is a must: Use 'conditional orders' to enforce stop losses, automatically close positions if the price drops below a certain level (e.g., if it drops below support after opening a long position)
3. Trading discipline:
- A maximum of 3 trades per day to avoid emotional trading
- Withdraw once the target is reached (e.g., if earning 200U in one day), leave 10% in the wallet and withdraw 90% to the bank card
- Monthly review: Statistically analyze win rates and profit-loss ratios, eliminate strategies with a win rate of less than 40%
4. Speaking frankly: Why can't you become a 'hard person'?
- Anti-human execution: Wanting to be greedy for 20% after making 10%, but fantasizing about a rebound after losing 5% is a common problem among retail investors
- Cognitive bias: Trading based on news = driving blindfolded; those who really make money are studying hard data like 'funding rates' and 'position distribution'
- Survivor bias: Those who flaunt 'turning 5000 into a million' likely have 99% of accounts blown up
Final reminder: Contract trading is essentially 'betting small to win big,' but leverage is a double-edged sword—I've made money using this method because I spend 8 hours a day studying the market and have experienced three account liquidations to zero. Beginners should first practice with 300U on a simulated account for one month; only discuss real trading after achieving stable profits.
