In a bear market, many people are left with only a few thousand yuan in hand, but they always think about making a reversal against the wind. To be blunt, this kind of mentality is especially prone to losses in the crypto market. The crypto world is not a casino; every operation tests your execution ability and psychological resilience.

I have seen many cases. There is a trader who started with 1,200 USD and grew it to 25,000 USD in four months. Now the account has grown to over 38,000 USD, and he has never been liquidated. You might think it's luck, but there is a systematic logic behind it.

**Step 1: The Iron Law of Capital Allocation**

Dividing your principal into three parts is fundamental:
- One-third for intraday short-term trading, targeting one wave of the market each day, and withdrawing once the target is reached
- One-third for swing trading, which may stay idle for ten days or half a month; once the trend is confirmed, participate with full position
- One-third as a safety net, your insurance for a comeback

Full-position trading people tend to die the fastest. Staying alive is the only way to continue making money.

**Step 2: Grasp the Market Rhythm**

80% of the crypto market time is in consolidation, and most operations are just giving money to the market. During sideways movement, stay honest and flat; wait until the trend becomes clear before taking action. When profits reach the target, cash out immediately. When gains exceed 20% of your principal, withdraw one-third directly. The hallmark of experts is not greed; they never delay taking profits when it’s time.

**Step 3: Use Rules to Suppress Emotions**

Set stop-loss at a 2% loss; once hit, cut immediately—no bargaining.
When earning 4%, reduce some holdings to lock in profits.
Never add to positions when in a loss.
Write down all rules and execute mechanically; don’t let emotions dominate decisions. This is the highest realm of making money.

Having less capital is not scary; what’s scary is always thinking about getting rich overnight. Those who can truly grow small capital rely on strict risk control and a trading framework with ample profit margins. If you are still troubled by small fluctuations or unsure how to judge trends and control positions, it’s worth re-evaluating your operating system. The core points are: how to allocate positions, when to take action, and how to set profit margins. Avoiding detours for a few years is more valuable than anything else.