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I've seen too many people rush into the crypto world with just a few thousand dollars, dreaming of getting rich overnight, only to end up as cannon fodder in the market.
But this is not the fault of small funds. In fact, quite the opposite—the small funds are the real advantage. A small ship is easier to turn around. As long as the strategy is right, the growth rate can be much faster than with large funds.
Last year, I mentored a trading novice who is a living example. His account started with 1,200U and grew to 25,000U in four months, now steadily at 38,000U. He's not a genius, just someone who diligently followed a systematic approach.
**First Trick: Divide your principal into three parts and completely abandon the all-in gamble**
Trial and error position (400U): Used specifically for intraday short-term trades, with at most one trade per day. Take profit at 5%, then exit—never greedy;
Swing position (400U): Wait until the trend is clearly defined before acting. Hold no longer than ten days, aiming for a 15%-30% gain;
Life-saving position (400U): I recommend never moving this money. Only when the first two positions are all profitable can you consider deploying some funds.
Many people's problem is that they go all-in at the first sign of a trade. When the market slightly fluctuates, they get wiped out. The purpose of dividing positions isn't to slow you down; quite the opposite—it ensures you always have a card to play and never fall into despair.
**Second Trick: Only trade during "fat market" periods, otherwise it's a waste of life**
The current state of the crypto market is like this: 80% of the time it's oscillating, only 20% of the time there are meaningful trends.
When the market is sideways, just turn off the software. Don't watch the charts obsessively—avoid self-sabotage. Once a trend is confirmed (for example, a volume breakout of a key moving average), then enter in batches. This helps avoid being swept out by false breakouts.
When earning over 20%, immediately withdraw 30% to lock in profits, leaving the rest to pursue bigger gains. Small funds aiming to turn around should rely not on trading frequency but on the odds of each trade. Missing ten oscillations isn't a big deal, but misreading a trend could mean getting out entirely.
**Third Trick: Use rules instead of feelings; emotions are the poison of trading**
Set a strict stop-loss before opening a position—if losses exceed 2%, cut immediately, no discussion. No holding through losses, no averaging down—that's the bottom line.
Once profits reach 4%, halve your position size immediately. After recovering your costs, use the remaining funds to chase bigger profit opportunities. Limit your trades to no more than twice a day—that maximizes emotional control.
The biggest enemy of small funds isn't losing money but losing control. When you replace feelings with cold, hard rules for decision-making, the market will start to treat you more gently.
Previously, you were stumbling in the dark; now, you hold a light. Keep that light on, and see if you're brave enough to follow.