I have some practical advice here; let’s talk about how to quickly grow small capital. I’ve personally tried it and have guided others, so today I’ll share some honest insights.

Let’s be clear, when I talk about small capital, I mean under 100,000 yuan, like 30,000 to 50,000 yuan. With this kind of capital, if you use it correctly, it’s not a dream to multiply it four to five times in four months. One of my students, Xiao Jia, started with 70,000 and grew it to 250,000 in four months. Now he makes about 40,000 every month in his own account.

But your capital can’t be too small either. If you have only a few hundred or a few thousand yuan, even if you multiply it ten times, what good is that? It’s better to work properly. If you really want to do this, at least prepare 30,000 yuan; otherwise, it’s meaningless.

If you want to grow small capital, you must go through three stages. I have walked through them myself and seen others go through them; none of them can be skipped.

The first stage is losing money.

You must lose, and it must be a deep loss. People cannot earn money beyond their understanding; you have to pay tuition. At this point, you look at the market and feel like there are opportunities everywhere, wanting to do everything, but the result is repeated slaps in the face and continuous losses. Xiao Jia initially set up five trading systems; when one made some profit, he increased his position, but when it blew up, he switched to the next one—resulting in being beaten back and forth.

Later I understood: trading is not about seizing every opportunity, but about finding the types of opportunities you are best at. If you don’t understand it, don’t do it! Every system has times when it makes money and times when it loses; do you think you can avoid all losing periods and capture all profits? It’s impossible. Xiao Jia paid four months and 20,000 yuan in tuition for this understanding.

The second stage is not losing, but also not making money.

At this point, you already have your own method, but the problem arises: you can’t help it. Clearly, the system hasn’t given a signal, but you see a big bullish candle shooting up or hear others flaunting their profits, and in a rush, your hand itches, and you end up trading outside the system. The result is either missing out on the sale, or losing some money again—losing money is one thing, but your mindset collapses as well.

The most critical part of this stage is: you must completely believe in your system. How to believe? Go back and conduct backtesting, and do a lot of review until you are truly satisfied with the win rate of this system; only then will you know: as long as you persist in execution, a system with a positive expected value can make money. Trading is actually very simple; it’s like money lying in the corner—you just walk over, bend down, pick it up, put it in your pocket, and walk away. Don’t complicate it.

The third stage is finally starting to make money.

At this point, you are making stable profits, but new problems arise: mindset fluctuations. But I’ll be honest, all those who complain about bad mindsets are essentially being pretentious. If you want to make big money, you have to let go of the small desire to care for your emotions. This is an equivalent exchange—if you want to handle large capital, you have to suppress small emotions. Luo Zhenyu forces himself to get up early every day to record audio, Li Na plays tennis until she vomits; who doesn’t suffer? But they achieved results.

At this stage, mindset and position are tied together. I recommend 'position based on loss'—before your next trade, think about how much you're willing to lose on this trade, then calculate how many lots you should trade. I explained this in detail in my eighth video, so I won't elaborate here. The reason your mindset collapses is often because your position is too heavy. You don’t care about the next trade, but with the next hundred trades, your hands shake, and you want to run at the slightest loss, or you can’t hold on even when you make a bit.

To summarize:

These three stages cannot be avoided; the ultimate goal is only one: to create your own trading system and stick to executing it.

But I remind you: building your own system from scratch takes a lot of time. It’s like the principle of leverage; if you want to save distance, you have to expend effort; if you want to save effort, you have to take the long way. There are no shortcuts.

But as long as you endure it, the rest will be smooth.

--- Follow Orange, and let’s get better together on this contract path!