Capital Management Strategies and Trading Discipline for Retail Investors

In the crypto market, many people see it as a "casino" to try their luck. In reality, this is a battlefield that requires strategy, discipline, and the ability to manage risks. Even with a small capital of under 1,000 USDT, if you know how to operate wisely, multiplying your capital several times is not a fanciful idea. Here are three core principles: 1️⃣ Allocate capital wisely to avoid total risk 400 USDT for short-term trading (day trading): Focus solely on one order, take profits as soon as the target is reached, do not "hold the order" for too long. 400 USDT for medium-term trading (swing trading): Patiently wait for the right entry point according to a clear trend, trade less but with certainty. 400 USDT reserve: Do not touch unless absolutely necessary. This is the "survival capital" to protect the account. 👉 This way of dividing capital helps investors always have space to manage, not be caught up in a risky "all-in" state. 2️⃣ Only trade when there is a major trend 80% of the time, the crypto market only fluctuates randomly. Trading during this period is no different from throwing money to the market. Only participate when the trend is clear. Once you have profits, prioritize locking in part of the 30% to ensure your gains. Long-term thinking: Those who earn sustainable profits are not the ones who trade continuously, but rather those who wait for the right moment, "strike once, benefit for many years." 3️⃣ Absolute discipline, eliminate emotions Cut loss at 2%: Must comply, no hesitation. When profit exceeds 4%: Reduce position, realize profit. Absolutely do not average down when in a loss. The goal is not to be 100% correct, but to ensure each step follows the rules. Profit is the natural result of the system, not an emotion. Key message Small capital is not a problem; the mindset of "getting rich overnight" is the real enemy. Growing an account from a few hundred to tens of thousands of USDT does not come from luck, but from a risk control system and profit management. Understanding positions, grasping trends, and adjusting trading rhythms is the right path. In the crypto market, the guiding light is always strategy and discipline, not emotions and haste.