When you don't have much money in hand, how should you get on board?
I have seen too many people trying to double their capital of a few thousand in just a week, only to blow their accounts in less than half a month. On the contrary, a brother I know started with just a few tens of thousands, and after a few months, his account steadily went up – what exactly did he do right?
**First, let's talk about how to allocate funds** He divided the money into three parts: one part is used for short trades, quickly entering and exiting, making a profit and then running away; another part is specifically for waiting for mid-term opportunities, only acting when the timing is right; the last part is emergency funds, no matter how bad the losses are, it should not be touched. The essence of this strategy is that you always have a way out, and you won’t be pushed back to square one by a wave of market fluctuations.
**Don't fumble around during the fluctuations** The favorite thing for beginners is to keep operating back and forth while staring at the intraday chart, but the transaction fees can eat away half of their profits. His principle is simple and straightforward: if the direction is unclear, just take a break; once the trend emerges, follow it, and withdraw a portion once the target is reached. Profit only counts when it's in the pocket; it could always go back if it's just on paper.
**Sticking to the rules and getting stuck** The market will not cater to anyone's judgment, but discipline can save your life.
He set three rules for himself: the maximum loss for a single trial and error should not exceed 2% of the total capital, if the profit exceeds 4%, he will take half of it off the table first, and he absolutely will not increase his position to average down the cost when he incurs a loss. Last month, he misjudged the direction three times in a row, but because he only moved 2% of his position each time, he was able to recoup directly with a 15% increase in the following wave.
It's really not scary to have little principal; what's scary is when your mindset collapses and you start to gamble. If you are also in the accumulation phase, I suggest you keep these three rules for reference—live long, and you'll have the chance to wait for the real big market.
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When you don't have much money in hand, how should you get on board?
I have seen too many people trying to double their capital of a few thousand in just a week, only to blow their accounts in less than half a month. On the contrary, a brother I know started with just a few tens of thousands, and after a few months, his account steadily went up – what exactly did he do right?
**First, let's talk about how to allocate funds**
He divided the money into three parts: one part is used for short trades, quickly entering and exiting, making a profit and then running away; another part is specifically for waiting for mid-term opportunities, only acting when the timing is right; the last part is emergency funds, no matter how bad the losses are, it should not be touched. The essence of this strategy is that you always have a way out, and you won’t be pushed back to square one by a wave of market fluctuations.
**Don't fumble around during the fluctuations**
The favorite thing for beginners is to keep operating back and forth while staring at the intraday chart, but the transaction fees can eat away half of their profits. His principle is simple and straightforward: if the direction is unclear, just take a break; once the trend emerges, follow it, and withdraw a portion once the target is reached. Profit only counts when it's in the pocket; it could always go back if it's just on paper.
**Sticking to the rules and getting stuck**
The market will not cater to anyone's judgment, but discipline can save your life.
He set three rules for himself: the maximum loss for a single trial and error should not exceed 2% of the total capital, if the profit exceeds 4%, he will take half of it off the table first, and he absolutely will not increase his position to average down the cost when he incurs a loss. Last month, he misjudged the direction three times in a row, but because he only moved 2% of his position each time, he was able to recoup directly with a 15% increase in the following wave.
It's really not scary to have little principal; what's scary is when your mindset collapses and you start to gamble. If you are also in the accumulation phase, I suggest you keep these three rules for reference—live long, and you'll have the chance to wait for the real big market.
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