Everyone who invests has heard the saying—mindset determines everything. But in reality, many small retail investors, driven by the urgency to turn things around, end up losing more and more, eventually losing everything.

I have a new investor under my wing who started with 1000U and, in two months, grew it to 200,000U, all without a single liquidation. Someone asked if it was luck, and I said no. His success is because he strictly followed three rules.

**Rule 1: Diversify your funds, never go all-in.**

How to split 1000U? Here's his approach: allocate 200U to short-term trades on mainstream coins like ETH, taking profits of 3%-5% each time and then exiting; another 200U to swing trading with the market—selling some when it rises, going to cash when it falls; and keep the remaining 600U tightly held as safety funds, which he never touches regardless of temptation. The benefit of this is—even if one trade loses, he still has bullets left, preventing total ruin.

**Rule 2: Follow the trend, don’t fight it.**

Market fluctuations are the hardest to endure. Many can't resist making moves. His method is: if the direction isn’t clear, stay in cash and wait; once the trend becomes clear, then enter. When making profits, don’t be greedy—take half off at 12%, and leave the rest to run. This isn’t greed; it’s about protecting what’s already gained, so the remaining capital can be used for further opportunities.

**Rule 3: Use discipline to control emotions.**

This is the most critical rule. Limit single trades to a maximum loss of 2%. Once that line is hit, cut losses immediately—no hesitation. Take profits at 4% and start reducing position size. If you suffer a loss, never average down. Many people lose money because they believe a rebound will recover losses, but instead, losses grow. In investing, it’s about using strict rules to fight human greed and fear.

For small funds to grow, the biggest enemy is impatience and greed. From 1000 to 200,000U, it’s not about a big market move, but about rules + patience, and continuous compound growth.