Eight years in the circle, I have experienced overnight riches and also gone bankrupt to zero. Now, with millions in my account, I want to share the most core trading principles. Many people ask me, how can small capital survive in the crypto world? The answer is actually very simple—crypto is not a casino; it’s a battlefield that values strategy and discipline.

I once managed a beginner account with only 1200U. When he placed his first order, his hands were trembling, afraid that one wrong move would wipe out his principal. I told him very clearly: "Forget about overnight riches, follow the rules, and take it slow." What was the result? In three months, the account dropped to 21,000U, and in five months, it surged to 47,000U, all without ever getting liquidated. This is not luck; it’s the power of discipline.

**Iron Rule 1: Divide your funds into three parts and always keep a backup**

Splitting your principal into three parts is the most important rule I follow.

The first part (one-third) is for day trading. Focus only on short-term fluctuations of Bitcoin and Ethereum, taking profits of 3%-5% immediately. This part emphasizes frequency and stability, not big gains.

The second part (one-third) is for swing trading. Don’t aim to trade every day, but wait for clear trend signals before acting. Once in, hold for typically 3-5 days, seeking a steady profit.

The third part (one-third) stays outside the market as a trump card. No matter how crazy the market gets, this money remains untouched. It’s the confidence to turn things around and a mental anchor.

Have you seen those who go all-in? When prices rise, they get cocky; when they fall, they panic and can’t sleep, ultimately unable to go far. Those who truly survive in crypto understand the importance of keeping some funds outside. Even if one part gets trapped, you still have room to adjust and re-strategize.

**Iron Rule 2: Only follow trends, don’t waste energy in consolidation**

Eighty percent of the crypto market time is sideways. How many people have traded frequently during consolidation periods, only to pay huge fees and not make any profit? That’s just giving money to the exchange.

The expert’s approach is simple: don’t trade without clear signals; sit tight. When signals appear, act decisively. It sounds easy, but most people can’t do it because watching the market move makes them nervous.

The most important lesson I taught my beginner is—waiting is also part of trading. He rarely trades frequently, maybe two or three times a month, but each time he captures key swings.

Another detail is to withdraw profits when they are made. When earning 15%, take out half to secure gains. Let the rest run, but with less psychological pressure. This way, you have a chance to earn more and avoid losing everything out of greed.

**Iron Rule 3: Rules override emotions; this is the last line of defense**

I’ve seen too many people stay rational when making money, but completely collapse when losing. Adding positions, doubling down, going all-in—often, a month’s profit is wiped out in one decision.

So my rules are very strict:

Never set a single-loss stop-loss more than 3%. Exit immediately when hit—no bargaining. It sounds harsh, but that’s the price of survival.

When profits exceed 5%, cut your position in half. The half you take out is real money; the remaining half is like earning with the landlord’s money—completely different mindset.

Never add to a losing position. This rule has killed countless accounts; I can’t count them. Emotions are easiest to take over when you’re losing, and adding to a losing position is the craziest decision you can make at that moment.

Making money, frankly, depends on a system that keeps your hands from acting recklessly. From 1200U to 47,000U, there’s no black swan luck story. It’s about day after day following the rules: stop loss where needed, take profits when due.

**Final words**

Having less principal is not scary. What’s scary is always hoping for “one big turnaround” to change your fate. There are indeed stories of overnight riches in crypto, but behind those stories are a thousand stories of liquidation. Ordinary people’s way to survive here is to give up the thrill of excitement and use discipline to achieve stable compound growth. The three iron rules seem simple, but very few can stick to them. Those who do, survive.