From $1,200 to $50,000: Three Iron Rules of Trading

Let me introduce myself. I’m a seasoned player who has taken quite a few knocks in the crypto world. Last year, a friend named AK, who only had $1,200 left, came to me saying he wanted to make a comeback. I shared with him three basic principles. He stuck to them for three months, and his account grew to $50,000 without ever getting liquidated. Now I’ve organized these ideas here—see how much you can grasp.

**Rule 1: The Three-Fold Capital Allocation, Understanding the Principle of "Cutting Off a Finger to Survive"**

Divide your starting capital into three equal parts, each operating independently and not interchanging funds. What’s the logic behind this setup?

First part (short-term trading account): Used for intraday or short-cycle trades, executing no more than two trades per day. Once done, stop immediately—no chasing the market.

Second part (trend holding account): Dedicated to observing weekly trend movements. If no clear direction emerges, stay flat and avoid rushing in blindly.

Third part (life-saving fund): Kept as emergency reserve. When an extreme drop occurs on a trading day, add to your position immediately to prevent being completely wiped out.

Why do this? Because a liquidation is just "cutting off a finger"—there’s still a chance to recover. But going all-in and losing everything is like "cutting off the whole arm"—you’re out of the game entirely.

**Rule 2: Only Ride the Best Part of the Trend, Be a "Hiding Turtle" During Other Times**

What’s a common mistake? Repeatedly trading in choppy markets, losing money nine out of ten times. My entry logic is very simple—

Watch the daily moving averages. Until a standard bullish alignment forms, I stay flat and wait. Once I see a volume breakout above a previous high, confirmed by the daily close, I enter the position for the first time.

After a good rally? When profits reach 30% of your principal, immediately take out half of the gains. Keep the remaining position with a trailing stop at 10%.

Honestly: markets are constantly generating opportunities. There’s no need to chase every train. Just be a good passenger on a smooth ride.

**Rule 3: Lock in Emotions, Execute Mechanically Without Hesitation**

This is the most critical and tests human nature. My approach is to write a clear "trading agreement" before entering—

Set a stop-loss at 3%. Once hit, close the position automatically—no hesitation, no wishful thinking. When profits reach 10%, move the stop-loss to t