I have seen too many people playing around with tens of thousands in the market, and in the end, their principal keeps decreasing. Last week, a guy complained to me that his account went from fifty thousand down to just over twenty thousand, and he asked me what to do.

I directly poured cold water on him: "What you're doing isn't trading, it's just feeding money to dogs."

Later, we started chatting and found that the problem lay in the two words "itchy hands" — seeing a rise and chasing it, panicking and cutting losses when it falls, operating seven or eight times a day. I told him the most basic principle: small money can't play high frequency, you have to learn to hold back for a big move.

Think of the example of folding paper; if you fold it 27 times, it can surpass Mount Everest, and if you fold it a few more times, it can go through the Earth. Market opportunities are similar; they don't come every day, but catching one is enough to sustain you for half a year.

The tricks I've figured out over the years actually come down to three main tactics:

**The first ax, aim accurately when squatting**
Don't focus on those chaotic fluctuations on the daily chart; switch to the monthly or weekly charts to find that kind of "Oh my, I haven't seen this position in ten years" bottom. You only wait for this one or two times a year; when it comes, it's yours.

**The second ax, go all in hard**
Small investors shouldn't try to imitate big players with diversified allocations; that's nonsense. When you've identified a historical bottom, just go all in. But you need to set the rules: if it drops 10% below the previous low, get out immediately; if you're wrong, accept it, and if you're right, hold on tight.

**The third axe, hold it steady**
Double it first and pull out the principal, leaving the remaining profit to continue rolling. After that, every time it doubles, take half to secure it, and continue playing with the other half—after all, it's all free money, do whatever you want.

According to this method, twenty thousand becomes forty thousand, forty thousand becomes eighty thousand... It's really not an exaggeration to roll it up to two or three hundred thousand in a year. That guy later told me a truth: "It turns out that making money relies on having a heavy position, and surviving relies on having strict discipline."

Small capital is actually a good thing; you can afford to lose and are more willing to place big bets at critical moments. Sometimes, thinking more and acting less is a hundred times more effective than watching the market every day.