Retail investors with less than ten thousand yuan in funds need to understand a harsh reality: this market is not about showcasing technical skills, but about the ability to stay alive.

Why do you often get wrecked? It’s usually not because the market is too difficult, but because you fall into two traps: one is being led by information, chasing every hot topic; the other is stubbornly holding on without recognizing losses, refusing to cut losses. Once caught, your account can be wiped out in an instant.

On the flip side, as long as you firmly avoid these two pitfalls, your account has the chance to grow gradually. The following method may sound unsophisticated, even a bit “rustic,” but precisely because it’s simple and dumb, it’s most suitable for small funds to implement. It doesn’t rely on reactions, luck, or easy explosive gains.

**Four Core Iron Rules**

**1. Only recognize one signal when choosing coins: the daily MACD golden cross**

Don’t waste time flipping through chat group histories, don’t stare at news feeds, and don’t listen to anyone’s calls. News always lags behind emotions, and when emotions run high, people start to panic and sell.

Focus solely on one thing: when does the MACD on the daily chart produce a golden cross? The indicator may be slow, but it won’t lie. Especially the golden cross above the zero line, which has the highest priority. Others are just noise.

If you don’t see a golden cross? There’s no reason to even open the chart and analyze.

**2. Whether to hold or not depends only on the daily moving average, nothing else**

You can’t handle complex systems. Remember one line: the daily moving average.

If the price is above the line, hold your position and wait for an opportunity. Once the closing price drops below this line, sell at the next open. Don’t hesitate—every hesitation costs you tuition fees from the market.

This is not advice; it’s discipline.

**3. Entry only considers two things: price and volume**

Profitable breakouts must meet two conditions: the price reclaims the moving average line, and volume expands. Breakouts without volume support are often just manipulations by big players.

Have a plan for taking profits, don’t be greedy: when gains reach 40%, take some profits to lock in gains; at 80%, take more to reduce risk. The remaining position should only follow one command—if the price falls below the moving average, exit all positions immediately.

**4. The rule for stop-loss is simple: if the price falls below the moving average, you must exit on the second trading day**

Remember this key point: a lucky break once, and your discipline is broken. If you can endure today, you’ll dare to gamble tomorrow, but in the end, all the profits you made earlier are often wiped out.

Missing the entry isn’t a problem. Wait until the price re-enters above the moving average before buying again—treat it as a new opportunity. Your role isn’t to heroically bottom-fish; it’s to stay alive and keep making money.

**A blunt truth**

This method isn’t clever, and it’s not exciting at all. But the biggest enemy of small funds is never slow gains, but a single reckless move that wipes everything out. Markets always exist, but without discipline, the more opportunities you have, the faster you’ll die. Staying alive is the first step.