Discipline is the only weapon the poor have in the financial markets.

My colleague Lao Zeng's story might be a microcosm of many people's future.

He entered the crypto space with the 1,500 USD he saved up over a year, and within less than two weeks, he lost 1,000 USD. Late at night, he messaged me, his voice full of tears: "I'm doomed. I was going to buy new furniture, but now it's all gone." I looked at the screen and shook my head—this is the result of not following the rules.

I gave him three bottom lines, and surprisingly, these three became his lifesaver later on. Five months later, his account grew from 1,500 USD to 30,000 USD, and by the eighth month, it surpassed 60,000 USD. Throughout the process, he never once liquidated his positions.

**First Rule: Diversify, don't put all your chips in one basket**

I advised Lao Zeng to split the 1,500 USD into three parts.

500 USD for day trading, only trading Bitcoin and Ethereum, the main coins. When the price moves up or down by 2%, he sells immediately. The benefit of this is that he learns what it means to take profits when the time is right.

Another 500 USD for swing trading. Wait until the trend is clear before acting, keeping positions within 3 days. This process teaches him patience and waiting.

The last 500 USD goes directly into a cold wallet, untouched. This money is for survival and serves as the final psychological defense.

Initially, Lao Zeng couldn't quite understand. When he saw a certain altcoin rise 20% in a day, he secretly moved 300 USD to follow the trend. As a result, that night it dropped 15%, and he lost 60 USD in an instant. This loss made him realize why I strictly forbid him from touching altcoins.

The biggest trap in the crypto space isn't market volatility, but human greed. Most people get wrecked by altcoins not because these projects are inherently bad, but because they simply can't control their own greed.

**Second Rule: Take profits and secure them**

Lao Zeng later developed the habit: every time his account profits reach 8%, he withdraws half of the gains to his bank card.