Last year I brought a friend into the circle. He had zero experience and only about a thousand dollars in capital. As a result, after four months, his account directly increased by more than twenty times, and he's still rolling the snowball now, never experiencing a liquidation during the process.

Many people ask me what my secret is. To be honest, it’s not luck, but a methodology that supports it. I started with small funds myself, learning through trial and error, and the core comes down to three key points—

**First, how to allocate capital.**

Don’t go all-in right away—that’s asking for trouble. I told him to split the money into three parts, each with its own purpose: the first part is for short-term trading, focusing on mainstream coins like BTC or ETH, making just one trade a day, taking 2-5% profit and then withdrawing, never being greedy; the second part is for big opportunities, such as when policy news comes out or key price levels are broken, entering for a 3-5 day swing trade, aiming for stability; the third part? Keep it locked away without touching it, regardless of price fluctuations—that’s your safety fund, to keep you afloat if your mental state collapses.

I’ve seen too many people with just a few thousand dollars go all in—when it goes up, they’re ecstatic; when it falls, they can’t sleep—ultimately, either liquidation or cutting losses and running. Remember: surviving in the crypto world is more important than anything else. Save your bullets; only then can you turn things around.

**Next, when should you take action?**

Most of the crypto market time is spent sideways. Frequently jumping in and out isn’t making money; it’s just paying exchange fees. When the market isn’t moving, doesn’t it feel better to do something else? Wait until the trend is clear—for example, when the price stabilizes above moving averages or volume picks up—then start trading.

Another iron law: lock in profits. As soon as profits exceed 20% of your principal, withdraw 30% immediately. No matter how good your account looks, it’s just numbers—putting it into your pocket is the real deal. True traders understand: don’t trade often; make your move once every three years. Don’t chase small fluctuations; wait for big opportunities.

**Finally, strict rules must be set and adhered to.**

Set a fixed stop-loss at 2% per trade, and cut if hit—no matter if it bounces back later; if profits exceed 4%, take half off the table and set a trailing stop for the rest to let profits run; the harshest rule—never add to a losing position! Over-adding increases panic and emotional trading, which is almost always losing money.

Trading isn’t about who’s the bravest; it’s about who can survive the longest. Stick to your rules, keep your emotions outside, and the money will naturally start to grow over time.