There is a common misconception in the crypto world—having a small principal means you are doomed to never turn things around. But I break this myth with real numbers: starting with an initial capital of 1200U, growing to 38,000U in three months, all without a single liquidation. This is not luck, but a complete trading system supporting it.

I went from 10,000U to an eight-figure net worth, and the core secret is two words: position sizing. It sounds simple, but very few people can actually execute it.

How exactly to divide? Break 1200U into three parts: 400U for intraday short-term trades—quick in and out, no entanglement; 400U for swing trading—only take action when trend signals are clear, which is the source of substantial profits; and the last 400U as a safety reserve—leaving yourself a way to turn things around.

Why do most people in the crypto circle fail? One word: all-in. Going all-in at once, losing the entire position, means there’s nothing left. Staying alive is the prerequisite for making money.

Besides position sizing, you must also learn restraint. About 80% of the time, the market is sideways. Frequent trading just pays fees to the exchange. When there’s no clear direction, stay quiet and wait. When a real trend appears, go all out. Take profits of 20%, then withdraw 30% to lock in gains—don’t be greedy.

A 2% stop-loss must be enforced—once hit, cut the loss without hesitation. When profits reach 4%, halve the position size to give the gains room to breathe. Use discipline to control emotions, not be scared by candlestick patterns.

Having a small principal is not the problem; the problem is gambling mentality. If you’re still losing sleep over a few hundred dollars’ fluctuations or can’t control your positions, I’m happy to share this entry and exit technique to help you step out steadily.