A friend of mine who trades brought a novice into the market with an initial capital of only 1,500U. After three months, the account grew to 28,000U, and then rolled up to 56,000U, all without a single liquidation.

Many people see this achievement and their first reaction is: luck must be on his side. But after a detailed chat, I realized that it’s not luck at all, but a complete risk management system. He summarized his experience from starting with 7,000U to achieving financial freedom, and the core points are these three.

**First Layer: Divide the principal into parts, don’t go all-in**

He didn’t throw all 1,500U into the market at once. Instead, he split it into three parts, each serving different functions:
- Intraday portion (500U): monitor one or two trades daily, enter when the setup is right, exit at the target, no greed
- Swing trading portion (500U): trade once every ten days or half a month, but when he does, he aims for big profits
- Reserve portion (500U): this money is untouched, kept as a backup to turn things around

The benefit of this approach is obvious—risk is diversified, and even if one trade loses, it won’t damage the whole. Many people in crypto get wiped out because they go all-in. Staying alive is the prerequisite for making money.

**Second Layer: Only take what you can eat, abandon small fluctuations**

Bitcoin and other cryptocurrencies spend about 80% of their time in sideways movement, during which reckless trading is basically giving away money. True experts wait for a clear trend before entering.

There’s also a key rule for taking profits—when profits exceed 20% of the principal, immediately take out 30% of the gains. Let the rest run. The result is: small profits happen often, big losses are hard to occur. Veteran traders say it well: “No action, no gain; action, eat for three years,” which captures this idea.

**Third Layer: Use rules to command yourself, don’t let emotions take over**

Set rules must be followed:
- Cut losses at 2%, no hope psychology
- When profits reach 4%, cut half the position and lock in gains
- Never add to a losing position—this is the bottom line

In simple terms: stick to the plan, don’t change it on a whim. The highest level of making money is actually very simple—let the money run itself, don’t let your emotions run it.

**Summary**

Growing from 1,500U to 56,000U may seem incredible. But when broken down, this logic is very solid: lock risk with position sizing, control pace with take-profit and stop-loss rules, replace emotional decisions with disciplined execution. There’s nothing mysterious about it—just think through each step carefully and then execute resolutely.

Having a small capital is never the problem; the real issue is mindset. Those who always want to get rich overnight often can’t even protect small amounts of money. Conversely, those who prioritize risk management first can survive longer amid volatility and earn more steadily.