People often ask me how to gradually accumulate a large amount of capital from a small initial investment. A big snowball can be rolled out this way. Recently, a brother I personally mentored is a living example—starting with 2000U, he turned it into 38,000U in three months. It sounds like a fairy tale, but there’s actually no "magic operation." The core principle is: first calculate the worst possible loss, then think about how much you can earn.

The fundamental reason most retail investors lose money is very painful— they haven't even figured out how they might lose before they start trading. The concepts of take profit and stop loss seem simple, but in reality, they are the dividing line between making money and losing money. I’ve organized a few trading strategies I’ve used; by adjusting your mindset, you can directly adopt them.

**First Strategy: Contract Short-Term Trading — Keep Stop Loss as Thin as a Blade**

Use 5x leverage for short-term trading, with a target of 6~8%, and never let the stop loss exceed 3%. Why so strict? Because with small capital and high leverage, a 1% loss greatly increases the risk of liquidation. My approach is: with 10,000U capital trading ETH short-term, cut losses immediately at 3%, and take profits at 6~8%, then exit.

Does this seem a bit stingy? But do the math—you’ll see a 5,000U increase in two weeks. The logic of short-term trading is never about getting rich in one shot, but about slow and steady gains. Each trade may not be profitable by much, but accumulated over time, it leads to a qualitative change.

**Second Strategy: Spot Medium-Term Trading — Let the Trend Carry Your Orders**

Want to ride a 40% big wave? Then you need to learn to tolerate 5% fluctuations. Stop loss points shouldn’t be set arbitrarily; they should be on the "life-saving line"—the previous low or the 4-hour moving average line. Once broken, exit.

For take profit, do it in two steps: first, when the gain reaches 35%, sell half to lock in profits; the remaining position should have a trailing stop—if it retraces 8%, close all. No one can sell at the absolute top, but selling at a high level already puts you ahead of over 90% of traders. Keep this mindset—your profits are real money, so don’t chase that last bit of profit.

**Third Strategy: Position Size Is a Life-and-Death Ledger — Never Randomly Overtrade**

This is the most easily overlooked. When trading with a small position, an 8% stop loss still allows you to sleep peacefully; but if you’re fully loaded, even a 2% stop loss can make you sweat cold. The same 12,000U, divided into 3,000U trades versus directly using 9,000U full position—risk levels are worlds apart.

Remember this: trading heavily without stop loss is like removing the brakes on a high-speed car—it’s not about whether you’ll flip over, but when.

**Final Bottom Line Logic**

My trading philosophy is like this:

Stop loss is not a cost; it’s a life-saving talisman.

Take profit is not a target; it’s the market’s dividend.

Treat every order as if it’s the "last one." First, think clearly about how you might lose and how to survive, then consider how much you can earn and how to earn it. The market is never short of opportunities, but if your capital is gone, the next bull market will have nothing to do with you.

Are you mainly trading contracts or spot? Do you have a fixed trading style? Let’s chat—I can help you refine this logic to a level you can directly implement.