Having been a trader for many years, I’ve seen too many people in the crypto space making a fortune, and also quite a few who get wiped out overnight. The difference isn’t in the starting point, but in whether there is a system.

Last year, I helped a novice whose initial account was only 1000U. At that time, he was so nervous every time he placed an order, afraid that one mistake would wipe out his principal. I told him very simply: "Follow the rules. Small accounts can actually be an advantage."

In three months, his account grew to 16,000U. After five months, it directly surpassed 38,000U. Throughout the process, he never experienced a margin call.

Some say this is luck? That’s a complete misconception. Behind it are three ironclad rules for "survival and profit."

**Rule 1: Divide your principal into three parts**

Don’t think about going all-in on one direction. His allocation was like this:
- 400U for intraday trading, focusing on mainstream coins like Bitcoin and Ethereum, closing positions when volatility hits 3%-5%
- 300U for swing trading, waiting for clear opportunities before entering, usually holding for 3 to 5 days before taking profit
- 300U as an emergency reserve, never touching it under any circumstances—this is the capital for turning things around

What about those who go all-in? When the market rises, they get carried away; when it falls, they panic and don’t know what to do. In the end, they don’t go far. True traders always keep a "bullet" outside the market. That’s not cowardice, that’s wisdom.

**Rule 2: Follow the trend, ignore noise**

Most of the time, the market oscillates back and forth, which is the biggest test of mental strength. Frequent trading only adds to transaction fees and makes you lose money without realizing it.

Don’t act without a clear signal. Once the signal is confirmed, execute decisively. This rhythm of "stay put until the right moment, then strike" is standard for experts.

Key detail: When profits reach 15%, withdraw half first. Don’t be greedy; locking in gains is the most reliable approach. When his account doubled, I watched him calmly take his profits—no rush, no impatience, no chasing the top. This calmness is the most valuable trait.

**Rule 3: Let rules be your anchor**

Set stop-loss at 3% and stick to it—no exceptions. This is the bottom line for protecting your principal.

When profits exceed 5%, immediately cut your position in half. Let the remaining position run on its own. This way, you lock in profits while keeping the potential for further growth.

Never add to a losing position. Losses are losses; adding to them only turns a small hole into a big pit. Emotions are the biggest enemy in trading, and rules are the leash that keeps that impulsive hand in check.

**Core logic**

Ultimately, turning 1000U into 38,000U is not a story of luck. It’s about rules, patience, and discipline.

Having a small account is not a disadvantage. Small accounts are easier to enforce strict discipline because every trade is clear and manageable. Those trading millions are often numb to the numbers due to their size.

The biggest fear isn’t having only a thousand in your account; it’s harboring the idea of "a big turnaround." If you hold that thought, you’ll eventually blow up your account. Remember: consistent, stable compounding beats occasional big gains.