Honestly, over the past few years in the crypto world, I've seen quite a few people lose everything. Interestingly—those who suffer the biggest losses are often not the ones with small capital, but rather the ones who consider themselves "smart."

I know a bunch of newbies who jump into the market with just a few thousand yuan, watching candlesticks daily, chasing hot topics, playing with leverage. Before the market even starts to rise, their principal is gone. Later, I realized that playing with small funds isn't about getting rich quickly; it's about staying alive. Only by staying alive can you wait for opportunities.

**Don’t treat the order book as a gambling table; learn to be a little "dumber"**

The biggest fear for small funds is—frequent trading. Transaction fees are hard to afford, and your mindset can't keep up. Over the years, I’ve developed three strict rules:

First, only invest in trending assets. If a coin is still establishing its direction on the daily chart, no matter how hot it is, I don’t buy. It’s easy to get in, but hard to get out whole.

Second, always check the trading volume. A rise without volume is fake; it sounds risky, but in reality, it’s even more dangerous. You can get in, but feel trapped at high levels with no way out—truly despairing.

Third, don’t be brainwashed by stories. So what if the project team hyped it up? Once the price breaks through key moving averages, you have to turn around and leave. Don’t hold onto false hope.

Opportunities in the market are always there, but your principal is only this much. Missing a certain rise isn’t scary; losing your principal due to a bad decision is deadly.

**Stop-loss? That’s what keeps you alive**

The biggest difference between newbies and seasoned traders isn’t their chart-reading skills; it’s whether they can be ruthless with themselves. I’ve seen too many people hold onto losses, refusing to admit defeat, still saying "It’ll rebound and I’ll make it back." But traders who have survived know one thing—there’s no negotiation on stop-loss.

My approach is very straightforward:

If the closing price drops below the 60-day moving average (daily chart), I sell at the next day’s opening price. I don’t care what happens afterward; I don’t gamble on rebounds.

Set a hard limit on each trade—never lose more than 10% of your total principal. Even if you lose ten times in a row, your account remains intact, and you still have a chance to come back.

Don’t be reluctant to cut losses. As long as your position is still in your hands, you can re-enter anytime. But if your account blows up, there’s really no chance left.

**The first thing to do after making money is to withdraw**

Small funds need to grow; compound interest sounds tempting, but the secret isn’t in making a lot in one go, but in making steady gains.

For example, if you make a 50% profit in a market cycle, my habit is to withdraw the profit first. It may seem conservative, but that’s why my account is still alive. Most people die from greed—always th