Many people in the crypto circle ask me one question: how to turn a small principal into big gains? My answer has never been some magical formula, but three simple, straightforward rules.

Let me share a real case. Fan A-Hua approached me three months ago with only 3000U in his account. I didn’t give him complex indicator analysis; I just taught him a set of operational frameworks—stick to them for 90 days, and his account truly came back to life, steadily rising. The only thing he did in these three months was to strictly follow these three rules.

**The Three-Part Capital Allocation is the Starting Point**

Divide 3000U into three parts, each 1000U. This isn’t some advanced theory, just the simplest common sense: don’t put all your eggs in one basket. The term “full position” has caused too many people to get wiped out.

Each of the three parts has its own role:

The first 1000U is for short-term trading. At most two trades per day, aim for quick profits, cut losses if the picture isn’t clear, never hold onto losing positions. The goal of short-term trading isn’t big wins, but small, stable gains.

The second 1000U is for trend trading. This is a game of patience—“wait for the rabbit, don’t shoot the hawk.” If the weekly chart shows no clear upward signal, this 1000U remains frozen in the account, doing nothing. Many people get stuck here because they can’t wait.

The third 1000U is for emergency funds. Its only purpose: to add margin before liquidation on the day of settlement. Always keep yourself at the table. Liquidation is like amputation—you can grow back fingers, but if your head is cut off, the game is over.

**The Market is a Meat Grinder, Rules are Your Amulet**

Volatile markets are essentially harvesting. Out of ten reckless traders, eight or nine will be harvested. So, entry signals must be crystal clear, requiring no deep thinking:

First, if the daily moving averages are not yet arranged in an upward trend, then zero position. No trading at all—just step back.

Second, if volume breaks previous highs and the daily close confirms an upward move, that’s the first entry signal. No early entries, no guessing.

Third, when profits reach 30% of the principal, immediately take out half to lock in gains. The remaining part should have a 10% trailing stop to continue participating. Greed will always make you vomit it out in the end.

**Emotions are the Biggest Enemy**

I’ve seen too many top-notch traders get wiped out because of emotions. How to lock emotions? The method is primitive but effective—write a “life-and-death statement” before entering.

A 5% stop loss—when hit, close the position automatically. No bargaining, no hoping for a rebound. That’s the bottom line.

A 10% profit—immediately move the stop-loss to the cost price. Even if there’s volatility afterward, you won’t lose your principal. The remaining fluctuations are market gifts—if you want them, take them; if not, let them go.

It sounds boring, but boredom is the secret to survival.

**How to go from 3000U to 30000U?**

It’s not some trading magic trick, just the three words: “Make fewer mistakes.” The market offers opportunities every day, but your principal doesn’t have unlimited lives. Internalize these three strict rules first, then study wave theory, various indicators, and charts. Those who reverse this order usually die the fastest.

I also study tools like waves, moving averages, and volume, but they always come after you have developed risk awareness. Many people get obsessed with indicators from the start and end up losing all their capital.

Survive first, then talk about wealth. If you can’t survive, you’re just paying the trading fees. In the crypto world, it’s never the fastest runner who wins, but those who can stick to the rules and persevere until the end. The survivor is king—this rule is especially true in the crypto circle.