$SIREN Why do people with small capital lose the fastest?
The answer is simple: it's not that the market is difficult, but that there are no rules.
The biggest problem with small funds is one word—impatience.
With only a few hundred or a few thousand U in the account, they think about doubling it every day.
The result is: going all in, using maximum leverage, chasing highs and selling lows. When it goes up, they feel like they are taking off; when it goes down, they go straight to zero.
Last year, a brother came to me, his account only had 700 U left, and he was completely stunned.
I told him: stop thinking about doubling; first, learn to survive.
Step one, break that 700 U up.
Don't throw it all in; instead, divide it into several portions and operate slowly:
One portion for day trading, take a little profit and run, don’t be greedy;
One portion to wait for clear trends before acting, better to wait a few days;
One portion to simply not touch, keep it as life-saving money.
Take it slow, even if the market is volatile, you won’t be kicked out.
Step two, control your hands.
The biggest problem for beginners is not that they can’t understand the market, but that they want to try everything. They trade during sideways markets, trade during fluctuations, and get itchy hands with every little movement in the K-line.
I told him: 80% of the time, the market is not worth acting on. Move when the opportunity arises, if there’s no opportunity, just sit and watch.
Step three, solidify the rules.
If the stop loss hits, exit; if you earn a little, take some profit first; if you lose, absolutely do not increase your position.
Most people fall here: clearly wrong, yet still thinking “let’s wait a bit more.” The market loves to harvest those who are overly optimistic.
Three months later, he sent me a screenshot: 700 U slowly grew to over 10,000.
Five months later, the account broke 50,000+.
What impressed me the most was not the numbers, but what he said:
I used to look for opportunities every day, now I just wait for opportunities.
Making money in the crypto world isn’t that mysterious.
What’s truly difficult is not understanding the market, but controlling your own hands.
Small capital is not scary, what’s scary is always wanting to turn the tables in one go.
As long as the account is still there, opportunities are still there; if you keep shooting out, no matter how good the market is, it won’t matter to you.
Follow Old Zhang's strategy; I can’t say how much you’ll earn, but at least you can stay at the table!
The current market hasn’t finished yet; if you want to follow Old Zhang, come and I’ll let you have a bite of the meat.
$RIVER $TAO