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Insufficient starting capital of less than 2,000 yuan? That's not a problem; the key lies in the method.
I have a friend who started with 1,200 USD and managed to reach 28,000 USD in just three months, all without a single liquidation. He didn't rely on luck but mastered three key principles.
**Step 1: Divide the money into three parts, each with its own purpose**
- 400 yuan for short-term trading, with a maximum of two trades per day. If the opportunity isn't right, stay put.
- 400 yuan idle, waiting specifically for major trends. Many people are greedy, trading frequently during volatile markets, resulting in nine losses out of ten. Instead, it's better to wait calmly; once the trend is confirmed, strike hard.
- The remaining 400 yuan is for risk management, saving your life in extreme market conditions.
**Step 2: Know when to take profits and when to hide**
Take half of the profits once they exceed 30% of the principal. Don't try to get rich overnight. Stop-loss is as simple as drinking water—if you lose 3%, exit immediately with no hesitation. When profits reach 10%, move the stop-loss up to protect gains.
**Step 3: Execute mechanically, keep emotions out of it**
Set your trading rules and follow them strictly. Don't change your plan because of a news event, or increase your position because you're in a good mood. Discipline is the foundation of making money.
Now, this guy no longer stays up all night watching the market. Just spend ten minutes each day setting up positions based on signals. The real money-makers are never the busiest.
To turn things around, first learn to survive. Precise position sizing, capturing the rhythm, and controlling risk—if you nail these details, you can save yourself two years of tuition.