When you don't have much capital in hand, what are you most afraid of? It's not missing an opportunity; it's that a single mistake means you can never get back up again. I've seen too many people holding a few thousand in principal thinking they can multiply it tenfold in a week, only to have it wiped out in three days.
In fact, starting with a small amount of capital is an advantage — you have the opportunity to build a truly useful trading system at the lowest cost. Here are three survival rules that have been honed by the market; they are not someone else's theories, but have been validated with real money.
**Article 1: Three kinds of money, three ways of life** Divide the funds into three parts. One part is for quick in-and-out trades to capture short-term fluctuations; take the profit and leave. The second part waits for the trend to emerge before entering, aiming for the mid-term. The last part remains untouched, as it is your safety net. The benefit of this approach is that you will never push yourself to the edge of a cliff all at once.
**Article 2: Don't waste time on noise** 80% of the market time is just going in circles, and the more you move during sideways fluctuations, the more you lose. The real time to act is during the clear 20% moments—if it’s going up, follow it; if it’s going down, observe; if there’s no direction, take a break. Remember to withdraw profits in batches; the numbers in your account aren’t profits, only what’s in your card counts.
**Article 3: Lock Your Emotions with Rules** Set three deadlines: a single loss should not exceed 2% of the total capital; lock in half immediately when profits exceed 4%; never average down on losses.
I met a friend who misjudged the direction five times in a row last year, but because he strictly implemented a 2% stop loss, his total loss was kept within 10%. Later, he made a full recovery during a wave of market movement. The purpose of the rules is not to ensure you win every time, but to allow you to afford to lose.
Having a small principal is not a disadvantage; impatience is. Those who can survive in the market for three years have multiplied their principal countless times. Take it slow, be steady, and time will give you the answer.
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When you don't have much capital in hand, what are you most afraid of? It's not missing an opportunity; it's that a single mistake means you can never get back up again. I've seen too many people holding a few thousand in principal thinking they can multiply it tenfold in a week, only to have it wiped out in three days.
In fact, starting with a small amount of capital is an advantage — you have the opportunity to build a truly useful trading system at the lowest cost. Here are three survival rules that have been honed by the market; they are not someone else's theories, but have been validated with real money.
**Article 1: Three kinds of money, three ways of life**
Divide the funds into three parts. One part is for quick in-and-out trades to capture short-term fluctuations; take the profit and leave. The second part waits for the trend to emerge before entering, aiming for the mid-term. The last part remains untouched, as it is your safety net. The benefit of this approach is that you will never push yourself to the edge of a cliff all at once.
**Article 2: Don't waste time on noise**
80% of the market time is just going in circles, and the more you move during sideways fluctuations, the more you lose. The real time to act is during the clear 20% moments—if it’s going up, follow it; if it’s going down, observe; if there’s no direction, take a break. Remember to withdraw profits in batches; the numbers in your account aren’t profits, only what’s in your card counts.
**Article 3: Lock Your Emotions with Rules**
Set three deadlines: a single loss should not exceed 2% of the total capital; lock in half immediately when profits exceed 4%; never average down on losses.
I met a friend who misjudged the direction five times in a row last year, but because he strictly implemented a 2% stop loss, his total loss was kept within 10%. Later, he made a full recovery during a wave of market movement. The purpose of the rules is not to ensure you win every time, but to allow you to afford to lose.
Having a small principal is not a disadvantage; impatience is. Those who can survive in the market for three years have multiplied their principal countless times. Take it slow, be steady, and time will give you the answer.
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