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$10,000 principal can turn into a million in half a year. It sounds like a dream, but the key is not how accurate your predictions are, rather whether you are "lazy" enough—lazy to avoid frequent operations and blind position increases.
Many beginners tend to go all-in and rush into trend trading. When they lose, they add more; when they make a profit, they aggressively increase their position, resulting in even more losses. My approach is the opposite.
**Step 1: Structuring the principal**
Divide the $10,000 into two parts. Lock $5,000 into a safe account as a "ballast," which will never be moved. The remaining $5,000 goes into the trading account, and even if the platform allows higher leverage, only open 10% positions. This way, the actual risk is similar to a conservative allocation. Set the stop-loss at 2%, risking at most $100, which is 1% of the total principal. This is far from the risk alert line, reducing psychological pressure significantly.
**Step 2: Focus only on "certain opportunities"**
In May last year, a mainstream asset declined for three consecutive days, signaling obvious panic. I entered the market at the low point. After three weeks, reaching the target level, I decisively closed the position, netting a profit of $35,000. The core of trend-following is to first increase the principal, strengthening risk resistance, so that you can snowball later.
**Step 3: Use only profits to trade, keep the principal unchanged**
For example, after a popular asset consolidates for 38 days, its trading volume suddenly increases by 30% and breaks previous highs. I then open a position with 2x leverage. When it rises 10%, move the stop-loss to the cost price; another 10% increase, add to the floating profit; leverage never exceeds 3x. If all goes well, two rounds of this will yield very objective returns.
**Four strict rules to follow:**
Set the stop-loss before opening a position; no matter how good the trend, it cannot be changed. When profits reach 30%, immediately transfer 20% to the safe account. After two consecutive losses, stop trading for 48 hours and review. If monthly losses exceed 10% of the principal, stop trading for the month.
As market volatility decreases, simply holding on blindly makes it hard to achieve big gains. Using tools reasonably is not scary; chaos in operations is. Clearly segment risks, focus only on certain opportunities, and "being a bit lazy" can instead help your account steadily grow.