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Many people ask me how to grow a big snowball from a small fund.
Recently, a brother I personally mentored turned 2,000 USDT into 38,000 USDT in three months. It’s not about any "magic operation," but strictly following an iron rule: first calculate the "maximum loss," then think about "how much can be earned."
Most retail traders lose money because they go into the market without understanding "how to die." Stop-loss and take-profit might seem basic, but in reality, they are the dividing line. The strategies I’ve used can be directly adopted with slight adjustments in thinking.
**Contract Short-term Trading: Stop-loss as Thin as a Blade**
Trading with 5x leverage short-term, a 6~8% target is enough, with a maximum stop-loss of no more than 3%. When the principal is small, high leverage can wipe you out with just 1% loss. When I trade ETH short-term, I cut at a 3% loss each time, and take profits at 6~8%. Don’t complain about small profits; over two weeks, you can make an extra 5,000 USDT. Short-term trading isn’t about making a fortune in one trade, but about slow, steady gains with small cuts.
**Spot Mid-term Trading: Let the Market Carry You**
Want to catch a 40% big wave? Don’t be scared by 5% fluctuations. Place your stop-loss at the "life-saving line," such as the previous low or the 4-hour MA60. If it breaks, exit. Take profits in two steps: sell half at a 35% increase to lock in gains, and trail the remaining with a moving stop-loss, clearing all if it retraces 8%. No one can sell at the absolute top, but being able to exit at a high level already wins 90% of traders.
**Position Size is Life and Death—Don’t Flip Through It Carelessly**
Light position size allows you to sleep soundly with an 8% stop-loss; heavy position size makes even a 2% stop-loss terrifying. The same 12,000 USDT, split into 3,000 USDT for trading and 9,000 USDT full position—risk is entirely different. Remember this: trading heavily without stop-loss is like removing the brakes on a high-speed car—it's not a matter of if it will crash, but when.
**My Own Bottom Line Logic**
Stop-loss is not a cost; it’s a life-saving token. Take-profit is not a target; it’s the market’s dividend. Every trade should be considered as the "last trade": first think about "how to lose" and "how to survive," then consider "how to earn" and how much. The market never lacks opportunities, but if your principal is gone, the subsequent bull market will have nothing to do with you.