What are the pitfalls that small investors are most likely to fall into? Many people think they can turn their 1000 yuan into a fortune in one go, but end up getting liquidated repeatedly, with their account wiped out. I have seen too many such cases.

The problem does not lie in how dangerous the market is, but rather in the lack of rules. Trading without rules is gambling, and gambling will eventually require repayment.

To let small funds survive and grow, the core logic is simple: don't think about making huge profits all at once, but instead use discipline to lock in risks and let profits run on their own. I have explored these three stages of strategies for a long time and share them with those who truly want to turn their situation around.

**Phase One: Test the Waters (1000U to 3000U)**

A thousand bucks can easily make one restless. The only goal at this stage is to practice execution discipline.

How to do it? Split 1000U into three parts, each part 300. Only move one part at a time, choosing relatively stable mainstream coins like ETH, and try using 5x leverage. Take profit immediately at 20%, and cut losses decisively at 10%, don’t think about holding on to turn it around - that thought will ruin you. Trade a maximum of twice a day, and resist the urge to trade during the rest of the time.

Earned it, take out 30% of the profit to secure it. Lost? Take a day off, review your trades, think about where it went wrong. At this stage, how much money you make is not important; what matters is whether you can execute according to the rules. Many people give up after not being able to persist for a week, which is normal—it means you are not ready yet.

**Stage Two: Roll Over (3000U to 10,000U)**

The account survived, now it's time to learn how to configure.

The principal has reached 3000 yuan, and the strategy needs to be adjusted: divide the position into two parts, using 60% for swing trading and keeping 40% as a reserve. Not all market movements are worth participating in; only take action when the major trend is confirmed—when the daily line breaks the key moving averages, that is the real signal.

After making a profit of over 30%, immediately move the stop loss to the breakeven point, so at least you won't lose the principal. To be honest, this stage is the easiest to crash because the account looks a bit better, and people start to get carried away, then they go all in. As a result, a pullback makes all previous efforts go to waste. Remember this: slow is fast, and many times being alive is more important than making money.

**Stage Three: Sprint (10,000 U to 100,000 U)**

At this level, the mindset must upgrade, and the strategy must also upgrade.

Trade no more than once a day, and learn to wait for high win-rate opportunities; it's better to miss out than to act recklessly. When profits exceed 50%, withdraw 40% of the profit first, and set a trailing stop for the remaining amount—this way, even if the market reverses later, you have already made a profit. There is also a bottom line: if your losses in a single day exceed 5% of your total capital, do not engage with the market for the entire week; rules are rules.

**Final Words**

What is the biggest mistake in the cryptocurrency circle? Losing your mind from losses. After several consecutive losses, people start to lose control, thinking about making a comeback, but end up sinking deeper. The real risk is not the market itself, but your out-of-control emotions.

Small capital turning around relies not on a single windfall, but on multiple small victories through compound interest. If you can persist in trading by the rules, rather than placing orders based on feelings, you will gradually understand—living long is ten thousand times more important than earning quickly. This path is long, and those worth walking are not in a hurry.