I have been in the crypto space for over eight years, witnessing countless retail investors rush in with the dream of "getting rich overnight," only to leave disappointed. Honestly, my deepest takeaway over the years is: small funds can grow big, not because of luck, but because of discipline.

Two years ago, I guided a friend who was new to the market. He started with a capital of 1000U, and after two months, his account grew to 200,000, all without a margin call. How did he do it? In summary, there are three ironclad rules. They may sound old-fashioned, but they are truly effective.

**Rule 1: Spend your money wisely, don’t go all-in**

The biggest flaw of retail investors is putting all their eggs in one basket. His approach was straightforward—divide the 1000U into three parts:

200 dollars for short-term trading, focusing on top-tier coins like ETH, taking profits at 3%-5%, and then stopping. Greed makes it easy to get trapped. The remaining 200 dollars for swing trading—wait for resistance levels to break and chase, or buy the dip at support levels. The real "capital" is the remaining 600 dollars, which he only uses in extreme market conditions—like a sudden crash or black swan event—otherwise, he avoids trading.

Sounds conservative? But this is the survival strategy for small funds. Your advantage is flexibility; your disadvantage is that you can't afford to tinker too much. The core logic of dividing your positions is to control different levels of risk with different amounts. If a short-term trade fails, it’s okay—you still have two other bullets. I’ve seen too many people lose everything in one "all-in" shot, with no chance to recover.

**Rule 2: Understand the big trend before taking action**

The second principle is to only trade in trending markets; in sideways markets, stay on the sidelines.

He spends just one hour a day monitoring the market, focusing on two things: whether the weekly chart can hold key moving averages, and whether Bitcoin has broken previous highs. Once these two signals confirm, he knows the big trend is in place and enters the market. When profits reach around 12%, he gradually reduces his position—no greed.

It sounds simple, but few can stick to it. Most people want to watch the market all day, afraid of missing any movement. In reality, you should act when it’s time to act, rest when it’s time to rest. This discipline itself is a way to make money. Many "experts" trade dozens of times a day, but end up losing most of their profits to fees.

**Rule 3: Cut losses ruthlessly, keep a steady mindset**

The last rule is the most critical—set your stop-loss before entering a trade. When the price hits your stop-loss point, cut it decisively, even if it hurts. His rule is to limit any single loss to no more than 3% of your capital.

Losing 3% and exiting immediately isn’t about being timid; it’s about survival. I’ve seen many big losers who stubbornly hold on until liquidation. When that happens, it’s too late to regret.

Ultimately, these three ironclad rules boil down to risk management and mental discipline. The crypto world constantly tells stories of "getting rich overnight," but those stories often involve survivor bias. Those who truly survive and thrive are the ones willing to accept mediocrity and strictly follow discipline.

For small funds aiming to turn around, don’t always think about one big move. Consistently making steady profits and repeating that process is the right attitude for long-term survival in the market.