Small accounts looking to turn around in the crypto market should avoid the biggest mistake of going all-in right from the start. Over three months ago, a friend had only $2,100 in capital left and was about to be completely eliminated. My solution for him wasn't based on complex technical indicators, but rather the simplest capital allocation method.
His $2,100 was divided into three parts, each $700, with distinct roles—this approach ultimately helped him stabilize his profit curve.
**How to Divide the Funds into Three Parts**
The first part is used for short-term swing trading, with a maximum of two trades per day. If it results in a loss, exit immediately—don't get entangled in losses; the second part focuses on riding the trend. If there's no clear upward signal on the weekly chart, stay put and don't make impulsive moves, even if opportunities pass by; the third part is the safety fund, only used on days when the account faces liquidation, with the sole purpose of survival.
The key understanding here is: the idea of full position trading must be eliminated. Liquidation is like amputation—losing a finger can be recovered, but losing your principal means being out completely. Many people fail at this point.
**Simplify Trading Signals to the Extreme**
Regarding specific operations, the rules should be simple enough for beginners to follow. My logic is as follows:
First, check the daily moving average alignment. If there's no bullish signal, stay in cash and wait—this is the basic screening; second, wait for volume to break previous highs and confirm with a daily close. Only when both conditions are met can you initiate a position for the first time; finally, when profits reach 30% of the principal, take half of the profit off the table, and set a 10% trailing stop-loss on the remaining position to lock in future gains.
For coins like BIFI with clear trends, this rhythm is especially suitable.
**Discipline is More Valuable Than Skills**
Before entering a trade, you must set fixed numbers: a 5% stop-loss, which triggers automatically without excuses; when profits reach 10%, move the stop-loss to the cost price, leaving subsequent fluctuations to the market. Don't always chase the current trend; opportunities in crypto are available every day, but your capital is fixed. Keep emotions in check, follow the rules strictly, and execute trade by trade—that's enough. Coins like ASTER can also present similar opportunities.
Going from $2,100 to $20,000 may look like a miraculous doubling, but the core is simply to make fewer mistakes. The market never lacks opportunities; what it lacks is those who stay alive long enough to seize them.
Master these three strict rules thoroughly before studying candlestick patterns and technical indicators. Survival gives you the right to talk about making money; otherwise, you're just working for the exchange. In crypto, wealth never belongs to those who run fast; it belongs to those who can stick to the rules and laugh last.
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MagneticFieldWorld
· 12h ago
Christmas rush! 🚀
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SatoshiNotNakamoto
· 13h ago
You're not wrong; going all-in is a recipe for disaster... I’ve been burned by that before too.
View OriginalReply0
DecentralizeMe
· 13h ago
To be honest, I've been using this three-part method for a while, but sticking to discipline is too difficult... I always want to go all in.
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TooScaredToSell
· 13h ago
To be honest, I've been using this three-part method for a while now, as it really tests human nature... The hardest part isn't the technology, but truly being able to resist full position.
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InfraVibes
· 13h ago
Honestly, going all-in is really just courting death. I've seen too many people ruin themselves by doing this.
View OriginalReply0
UncommonNPC
· 13h ago
Damn, I need to copy these three configurations. The idea of going all-in definitely needs to be suppressed.
Small accounts looking to turn around in the crypto market should avoid the biggest mistake of going all-in right from the start. Over three months ago, a friend had only $2,100 in capital left and was about to be completely eliminated. My solution for him wasn't based on complex technical indicators, but rather the simplest capital allocation method.
His $2,100 was divided into three parts, each $700, with distinct roles—this approach ultimately helped him stabilize his profit curve.
**How to Divide the Funds into Three Parts**
The first part is used for short-term swing trading, with a maximum of two trades per day. If it results in a loss, exit immediately—don't get entangled in losses; the second part focuses on riding the trend. If there's no clear upward signal on the weekly chart, stay put and don't make impulsive moves, even if opportunities pass by; the third part is the safety fund, only used on days when the account faces liquidation, with the sole purpose of survival.
The key understanding here is: the idea of full position trading must be eliminated. Liquidation is like amputation—losing a finger can be recovered, but losing your principal means being out completely. Many people fail at this point.
**Simplify Trading Signals to the Extreme**
Regarding specific operations, the rules should be simple enough for beginners to follow. My logic is as follows:
First, check the daily moving average alignment. If there's no bullish signal, stay in cash and wait—this is the basic screening; second, wait for volume to break previous highs and confirm with a daily close. Only when both conditions are met can you initiate a position for the first time; finally, when profits reach 30% of the principal, take half of the profit off the table, and set a 10% trailing stop-loss on the remaining position to lock in future gains.
For coins like BIFI with clear trends, this rhythm is especially suitable.
**Discipline is More Valuable Than Skills**
Before entering a trade, you must set fixed numbers: a 5% stop-loss, which triggers automatically without excuses; when profits reach 10%, move the stop-loss to the cost price, leaving subsequent fluctuations to the market. Don't always chase the current trend; opportunities in crypto are available every day, but your capital is fixed. Keep emotions in check, follow the rules strictly, and execute trade by trade—that's enough. Coins like ASTER can also present similar opportunities.
Going from $2,100 to $20,000 may look like a miraculous doubling, but the core is simply to make fewer mistakes. The market never lacks opportunities; what it lacks is those who stay alive long enough to seize them.
Master these three strict rules thoroughly before studying candlestick patterns and technical indicators. Survival gives you the right to talk about making money; otherwise, you're just working for the exchange. In crypto, wealth never belongs to those who run fast; it belongs to those who can stick to the rules and laugh last.