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I still remember that night I first entered the crypto world, holding $1500 in my hand, my palms sweaty when I placed the order. For some people, that's just enough for a meal, but for me, it was my entire chip to turn things around.
At that time, someone in the group showed a trade that earned several thousand dollars in one go. I was both envious and scared—envy because I wanted to quickly reverse my luck, and fear because one mistake could wipe me out.
Who would have thought that four months later, my account exceeded 19,000, and after half a year, it reached 35,000? The most impressive thing is that I never got liquidated. Today, I’ll break down this trading approach, maybe it can help you avoid some pitfalls for two more years.
**Even with less capital, divide it into three parts; living is more important than making money**
The biggest problem for people with little money is "all-in." I split the $1500 like this:
The first $500 is for day trading. At most two trades per day, take profits of 3 to 5 points and then exit. Greed is death. Only trade Bitcoin and Ethereum—the liquidity of these two coins is top-notch, their volatility is manageable, especially suitable for beginners to get a feel for the market.
The second $500 is for swing trading. Only look at the daily chart. If there’s no clear signal, stay on the sidelines. Sometimes I don’t open a position for a week, but once I do, I follow the trend to eat big gains. This method is easier than short-term trading but tests your patience.
The last $500 is for insurance. No matter how crazy the market gets, don’t touch it. This money isn’t for emergencies; its real purpose is to keep your mind at ease. I’ve seen too many small traders panic and put all their money in at once, only to lose sleep when the price pulls back. The beauty of dividing your capital is that you always have an exit route.
**Rules > Skills, this is the harsh truth I’ve learned**
Many people think making money depends on their ability to read the charts, understand indicators, or use some exclusive signals. Wrong. The real key to profit is never about skills; it’s about the rules you set for yourself.
My rule is simple: set a stop-loss on every trade, exit immediately if you lose 5%. And for profits? Take partial profits according to plan, never be greedy. It sounds simple, but when you implement it, you’ll find that 99% of people can’t do it.
Why? Because watching the market move, your brain will repeatedly resist these rules. When the price hits your stop-loss, you’ll think maybe it will bounce back; when you make a small profit, you’ll feel the trend isn’t over yet and want to eat more. At these moments, rules are like a rope—you need to tie yourself down.
It took me three months to truly develop this habit. I had one liquidation during that time, not big, but painful enough. After that, I never made the same mistake again.
**How much is patience worth? Sometimes more than intelligence**
There’s a funny phenomenon in crypto—everyone wants to watch the market 24/7, afraid of missing out. The result? Overtrading, high fees eating into profits, and a worsening mindset.
My strategy is the opposite: wait when it’s time to wait. For the $500 for intraday trading, I strictly limit the number of trades. Sometimes, I don’t get any signals that meet my criteria, so I don’t trade. Being out of the market is also a state—it’s not wasting time.
The $500 for swing trading is even more extreme—sometimes I look at the daily chart and see no entry point, so I put down my phone and do other things. After a week, if there’s a clear trend, I re-enter. It may seem like missing opportunities, but in reality, it’s protecting your capital.
After three months, you’ll find that you haven’t missed many big moves, and because you avoid unnecessary back-and-forth, your account grows more steadily.
**From insomniacs to sleepers**
Honestly, I used to be the type who checked the app ten times a day. Every price fluctuation affected my mood, and I slept poorly at night.
But once you follow your rules, keep making small profits, and avoid big swings, you’ll gradually calm down. Eventually, the frequency of checking your account drops from once an hour to once a day, and finally to once a week. Surprisingly, you end up making more money.
There’s nothing revolutionary about this approach. Simply put: diversify your funds, stick to your rules, and have enough patience. It seems like common sense, but common sense is often the easiest to overlook. I hope these experiences help you avoid some detours.