I came into contact with a young man last winter whose account balance was just over 700U.

When we first met, he was so tense that he didn’t even dare to blink while staring at the candlestick chart. I asked him what he feared the most, and he said that he was afraid that one wrong judgment would lead to losing everything. This kind of fear is all too familiar to me – when the capital is insufficient, every penny feels like a matter of life and death.

But it is precisely this situation that best reveals the caliber of a trader.

I outlined a few frameworks for him, with no fancy tricks, just the most basic survival rules. Four months later, he messaged me saying his account had surpassed 17,000 U, and within six months, he directly reached the milestone of 26,000 U. During this time, there were no liquidations, no all-in bets, and not even any dramatic moments of doubling—just a gradual grind.

**First, let's talk about the first thing: split the money for use.**

He divided the 700U into three uneven pools at that time:

Use 250U for intraday short trading, only touching assets like Bitcoin and Ethereum that have sufficient liquidity, and take profits when there’s a 2%-3% fluctuation. The purpose of this portion of money is to maintain the feel and keep the account active.

Leave 220U for swing trading, do not act rashly, only enter the market when the trend is clear, and the holding period is usually 2 to 3 days. This is the real part of making money, but the premise is that you must be able to wait.

Keep 230U as reserve funds, and do not touch it regardless of market fluctuations. The purpose of this money is not for trading, but to help you get back on your feet in extreme situations.

I have seen too many people going all in with a few thousand U, getting so excited they can't sleep when it rises, and panicking and cutting their positions chaotically when it falls. This kind of rhythm simply cannot last through a complete cycle. Those who can truly survive understand that it is essential to always keep a trump card outside the market.

**The second thing: Don't exhaust yourself in the fluctuations.**

The market is in a sideways trend 80% of the time; during this phase, frequent trading contributes nothing but fees to the exchange.

He later developed a habit - when there is no clear signal, he would rather sit still. Once there is a signal, he decisively enters the market, takes out 50% of the profit after gaining 10%, and lets the remaining position run with the profit.

This pace seems very slow, but once the effect of compound interest kicks in, the growth rate is much faster than those who watch the market every day. Not chasing uptrends or downtrends, not wasting bullets in ambiguous areas, and never hesitating when it's time to act — this is the rhythm that experienced traders have.

**Third thing: Replace emotions with rules.**

The stop-loss for a single transaction should never exceed 1% of the principal. Once the stop-loss line is triggered, exit immediately, regardless of the fundamentals or news, and cut it off when the time comes.

If the profit exceeds 2%, reduce the position by half to secure the profits. The remaining position can continue to be held, but the bottom line has already been protected.

Never average down after a loss. Many people get liquidated because they add to their positions, thinking they can lower their costs, but end up getting deeper into trouble.

You don't need to predict the market direction correctly every time, but you must ensure that every operation is within the framework of the rules. Making money relies on systematic execution, not on a sudden stroke of luck.

The small amount of principal is actually not the biggest problem; what is most feared is the reckless gamble after a loss of balance in mindset. Rolling from 700U to 26,000U, there are no secrets or shortcuts in between, just strictly adhering to discipline, controlling risk exposure, and patiently waiting for opportunities.

The market is always there, but whether you can seize the opportunity depends on whether you can stand firm.