Capital management is more valuable than technology: A survival guide for small capital

In the crypto market, losses are the norm—90% of participants end up losing money. It's quite disappointing to see beginners rush into the market with limited capital only to quickly get liquidated due to a lack of clear rules.

I myself went down this road four years ago. Through repeated lessons of chasing gains and cutting losses, I realized that rules and mindset are the core for small investors to survive in this market. Today, let's talk about how to build a sustainable trading system with a small capital like 1500U.

**Tip 1: The Three-Position System, Insure Your Capital**

Crypto market volatility is fierce, and capital management is the first line of defense. I divide 1500U into three accounts, each with its own purpose.

First, the practice account (400U). The goal of this fund is to pay tuition—each trade should control within 10% of the total, take profit at 3%, and exit immediately. If it loses 2%, leave the market. Sounds conservative? But the main point isn't to make big money with this account; it's to train your self-control against greed. Market opportunities are endless, but not every one should be seized.

Next, the sniper account (400U). This money isn't idle; it's waiting. Only take trades when the risk-reward ratio reaches 1:3, with a maximum of 10 trades per year. Like a hunter lying in wait, patience is more profitable than frequent trading. You'll find that the more patient you are, the easier it is to catch key market moves.

Finally, the life-saving account (400U). This money is stored in a cold wallet and entrusted to a trusted person. Even if the first two accounts are wiped out, this fund remains untouched. It’s your capital for a comeback and also a psychological anchor.

**Tip 2: Recognize Noise, Spend 80% of Time Not Watching the Market**

Most fluctuations in the crypto market are "ineffective oscillations." On daily charts, prices jump around; on weekly charts, there’s little change. Many people exhaust themselves watching candlestick charts, repeatedly stop-lossing and taking profits, only to find they’ve been repeatedly taken advantage of.

The secret lies in—learning to identify signals versus noise. When you view the market through weekly and monthly charts, you'll see that many short-term fluctuations are just distractions. Instead of chasing these useless swings all day, set clear rules, establish conditional orders, and then put down your phone.

The market’s greatest earning potential isn’t cultivated by watching charts all day. On the contrary, too much attention can fill your decisions with emotion. Once rules are set, let time validate them.