How to survive with a small principal? Staying alive is the most important

I have interacted with many small account traders, and most people fail not because they can't read the market accurately, but because of poor position control and rhythm management. Two years ago, I helped a friend start with 1200U, and in four months, he turned it into 25,000U. Now his account has exceeded 50,000U. His method isn't complicated; he simply follows three rules strictly.

**Rule 1: Divide your money into three parts; full position is suicide**

- 400U dedicated to day trading — focus on 1-2 mainstream coins, move only once a day, take a 5% profit and stop immediately, don’t try to maximize each wave.
- 400U for swing trading — wait for a clear daily trend before acting; sometimes trading only once every ten days, aiming to catch the most stable part of the trend.
- The remaining 400U stays idle — this is the bottom position, used to save yourself during crashes, and also acts as a stabilizer for your mindset.

Splitting your capital may seem conservative? Actually, it’s about leaving yourself a backup. True risk management is reflected here.

**Rule 2: Only eat the body of the fish, avoid the head and tail**

Market sideways? Don’t participate. Can't see the direction clearly? Stay in cash and wait. Most of the time in crypto is trash market; real valuable trading opportunities may only occur a few times a month. Instead of constantly consuming your principal in choppy markets, wait for the key moment when the trend breaks out. Only then should you act. This way, you can truly preserve your strength.

**Rule 3: Write discipline on paper, discard emotions**

Cut losses at 2% — no excuses, no wishful thinking, be ruthless to survive. Take profit at 20% and withdraw 30% first — only money that’s in your pocket is truly yours; let the rest continue to run. Never add to a losing position — adding is the start of emotional breakdown. Small capital cannot withstand the increasing cost pressure.

Slow down, and you’ll go faster

Honestly, this method isn’t exciting, even a bit dull, but it helps you avoid most traps: no late nights glued to the screen, no anxiety about missing opportunities, no fear from washouts or stop-loss hunts.

Remember this: as long as your principal stays alive, doubling it is meaningful. The crypto market never lacks opportunities, but what’s missing are those who stay alive and wait for them.