I'm not some trading guru—just an ordinary person who's been knocked around in this market for years, blown up accounts, and lost money.

Last year, a friend came to me, clutching $2,400, looking anxious and saying he wanted to make up for his previous losses. I didn’t tell him about those complicated technical indicators—moving average crossovers, MACD divergences—honestly, for beginners, those things are just confusing. I simply shared three lessons I learned the hard way, with real money.

The result? He followed my advice for three months, and his account balance grew to $68,000. Most importantly, he didn’t blow up his account even once during that time.

Today, I’m sharing these three “survival rules.” How much you take from them depends on how much respect you have for the market.

**Rule 1: Split your money into three parts, each with its own purpose**

Don’t just throw all $2,400 in at once. Divide it into three chunks, $800 each, and assign each one a purpose that you stick to. Absolutely no mixing.

The first chunk is for short-term trades only. Maximum of two trades per day—once you’re done, close the app. Don’t stare at the charts and get tempted to overtrade. The second chunk is for catching trends—if the weekly chart hasn’t shown a clear bullish pattern and there hasn't been a significant volume breakout past key resistance, pretend this money doesn’t exist. The third chunk is your “emergency fund”—only touch it if there’s a sudden crash and your account is about to be liquidated, to protect your last line of defense.

**Rule 2: Only take a bite out of the trend**

I only recognize three entry signals, and at all other times I’d rather sit on the sidelines:

Are the daily moving averages not in bullish alignment? Then stay put. If the market breaks out above previous highs with volume and the daily close holds? Take a small position and test the waters. If your account has grown 30% above your starting capital? Immediately withdraw half the profits, pocket them, and set a 10% trailing stop on the rest—don’t get greedy.

Remember, there are endless opportunities to make money in the market, but if you lose your capital, you’ve lost everything.

**Rule 3: Lock your emotions in a cage**

You must write out your trading plan before entering a trade. Set your stop loss at 3%; if it hits, close the position automatically—no hesitation. When your profit reaches 10%, move your stop loss up to your entry price, so at least you don’t lose money. Shut down your computer at midnight every night—if you can’t sleep, uninstall your trading app. Don’t let your emotions drive your trades.

Most people don’t lose to the market—they lose to their inability to control themselves.

There’s a market every day; there are always opportunities. But if your capital goes to zero, you’re out of the game for good.

Engrave these three survival rules in your mind first. Once you’ve mastered them, then you can start studying advanced wave theories and complex indicators. After all, only those who survive have the right to talk about profits.