Recently, I came across an interesting case — a friend started with $800 and, through structured position management, achieved a 20x growth in three months. The logic behind it is worth analyzing.

His approach is very simple: divide the funds into three parts.

The first part is for short-term trading, allocating $300 specifically for intraday trades. The core discipline is strict — only two trades per day, each with a stop-loss line set, and no exceptions when the line is hit. The essence of short-term trading is to quickly accumulate small profits; greed is actually the biggest killer. Those who stick to the rules survive by making small profits on each trade, while impulsive traders are usually already too late when they get caught.

The second part is trend following, also $300 but only on a weekly chart. The logic here is completely different — patiently wait for a clear upward trend to form before entering. Wait until a bullish alignment is established and volume breaks previous highs before acting. This way, you capture the most substantial profit segment within the trend.

The third part is for capital preservation, $200 idle. This money is used as a hedging tool during extreme market volatility — to cut losses at critical moments and prevent small losses from turning into a disaster. The importance of this part is often overlooked, but it determines whether a trader can survive to face the next market cycle.

Specific execution details: when profits reach 30%, take half off the table; for the remaining position, set a 10% trailing stop to let profits run freely; if losses hit 5%, stop immediately without hesitation; when profits reach 10%, move the stop-loss to the breakeven point, and let the market decide the rest.

From $800 to $18,000, the growth comes from making fewer mistakes each time. Opportunities are everywhere every day, but preserving capital is the top priority. Winners in the crypto market are never the fastest runners, but those who are still standing at the table in the end.