What is the most important thing in trading? Many people answer incorrectly.

Recently, I had a casual chat with a trader, and his story is quite typical. Two weeks ago, his account only had 1,800 USD, and now it has surged to 15,000 USD. He summarized his experience with a sentence that left a deep impression on me: "The difficulty in making money is not the principal, but the rhythm."

This brother initially had a typical retail trader mentality—anyway, the capital is small, so just give it a try. As a result, after a few trades, he almost got wiped out by the market. Chasing hot spots, following the crowd, going all-in—each adjustment caused his position to plummet. Only then did he realize that the problem wasn't having too little money, but rather not understanding how to survive in this market.

Later, he figured out three ironclad rules of his own, and I want to share them now.

**Rule 1: Lock the principal and let profits grow**

With an initial capital of 1,800 USD, he set strict rules for himself—only risking 10% of his position on the first trade to test the waters. If there was a loss, he would set a fixed stop-loss point, usually 2%-3%, and cut immediately—no sentiment involved. Only profitable trades would he consider adding to, and he would never add to losing positions.

It may seem not aggressive, right? But this is exactly why he has survived until now and is making more and more money. Going all-in on one trade and a single pullback can end the game. The real strategy is to let profits compound themselves, accumulate year after year, and eventually grow to a formidable size.

**Rule 2: Shut up if you don’t understand the market**

Opportunities are everywhere in the market, but not every one is suitable for you to copy. Now, he only trades one type—breakouts with clear trend and signals. For example, when Bitcoin or Ethereum form a converging triangle or double bottom pattern on the daily chart, and then break out with increased volume, he enters the trade in the trend.

The benefit of this approach is high certainty and a more stable mindset. Not every market movement is worth chasing; instead, it becomes a safeguard for consistent profits.