Is losing necessarily the outcome with small funds? Not necessarily. It all depends on the method you use.

Many people say that small funds have no chance, but actually it's the wrong approach. Flashy operations, frequent chasing of highs and selling lows, full-margin all-in — these are indeed the death knells for small funds. But with a different mindset, using the simplest tools, you can actually survive.

A few traders I know do it this way: slowly growing their capital from five figures to seven figures, not relying on any advanced theories, but just repeatedly following four simple rules. Today, I’ll just lay them out directly to save everyone from taking detours.

**First, choose coins based on a single signal**

Daily MACD golden cross. That’s it.

The golden cross above the zero line is the most stable, and the highest probability to enter. Don’t be led astray by various news or the voices of big influencers; those can change and be manipulated, but technical indicators won’t lie. Fundamentals, hot topics, positive news are just references, but the decision to buy or sell should be based on candlesticks and indicators.

**Second, hold based on only one line**

The daily moving average. Hold when the price is above it, exit immediately if it breaks below. This is not advice, it’s an iron law.

Many say they will cut losses, but when the moment comes, they hesitate. Hesitation means you might not get out in time. A break below the moving average is your signal to retreat — no need for further reasons. Exit at the next day’s open. Being soft-hearted once could wipe out all your previous gains.

**Third, wait for two conditions to appear simultaneously before entering**

Price above the moving average, with volume increasing at the same time. This is called price-volume synchronization, proof of a genuine breakout.

If there’s only price movement without volume, it’s a false breakout. If there’s volume but no price confirmation, it’s a trap. When both are in place, go all-in. After entering, when gains reach 40%, cut half the position; at 80%, cut again. The remaining position is for the big move. If the price breaks below the moving average, close all positions — no illusions.

**Fourth, stop-loss in one sentence**

If the closing price falls below the moving average, exit the next day.

Some say, “Wait a bit, maybe it will rebound.” I tell you, you can make up losses during a rebound, but a gambler’s mentality will kill you. Market opportunities are always there. If this trade fails, another signal will come. Why hang on to one bad tree?

This method, frankly, is a discipline game. It may seem simple and dull, with no fancy tricks, but the more basic it is, the easier it is to stick to, and the less likely you are to be eliminated by the market.

Look at the previous trend of a certain coin: as long as your entry timing is right, position control is good, and risk-reward is clear, you can capture large profits. The market never lacks opportunities; what’s missing is this kind of clear discipline. Most retail traders lose money not because the market is bad, but because they always want to earn more, and end up losing everything in one shot.

At the end of the day, trading is a probability game. You don’t need a very high win rate; as long as your stop-loss is strict, your position size is reasonable, and you’re willing to follow your plan, you will naturally make money over time. The advantage of small funds is low trial-and-error cost, allowing you to repeatedly test strategies. When you’re confident enough, add to your positions. That’s the way to survive.

This method may not suit everyone, but if you’re still exploring and your funds are limited, try following this framework for three months or half a year and see the results. Many things are just about execution — talking on paper will never teach you trading.