A friend, AK, had only $1,200 last year and came to me saying he wanted to turn things around. I didn't give him complicated strategies; I shared three basic rules of trading. He followed them for 90 days, and his account grew to $50,000 without ever getting liquidated. Today, I’m sharing this method with everyone. How much you can learn from it depends on your own understanding.

**Rule 1: Divide your principal into three parts and learn the "Finger-Cutting Philosophy"**

Split $1,200 into three portions, each $400, operating independently without interfering with each other.

Quick Money: $400, with a maximum of two trades per day. After that, stop. Don’t get itchy. This is for quick rhythm trading.

Trend Cannon: $400, dedicated to following major trends. If the weekly chart isn’t showing signs of upward movement, pretend to be dead and do nothing. Only big trends in Bitcoin and Ethereum are worth heavy bets.

Life-Saving Funds: $400, acting as insurance money. Used to counter dips and crashes. Immediately add to your position on the day of liquidation to stay at the trading table.

Full position? Don’t even think about it. Liquidation is like losing a finger—you can still live, but losing your head is game over.

**Rule 2: Only eat the most profitable trend, hide like a turtle at other times**

Sideways and oscillating markets are like a meat grinder. Data shows that in such conditions, 9 out of 10 trades get cut. My signals are straightforward:

When the daily moving averages are not in a bullish alignment, just stay out of the market—don’t do anything.

Break above previous highs with increased volume, confirmed by the daily close—that’s your first entry. Mainstream coins like Bitcoin and Ethereum have clear technical references.

Once profits reach 30% of your principal, immediately take out half. Use a 10% trailing stop to protect the rest.

Remember, the market offers opportunities every day. No need to rush in; just find a good ride.

**Rule 3: Lock your emotions in a cage and operate with a button**

Before entering a trade, write down your rules:

Set a stop-loss at 3%. When the price hits that point, automatically cut without discussion, prayer, or waiting for a rebound.

When profits reach 10%, immediately move your stop-loss to your cost basis. From that moment on, any gains are market gifts, and your mindset will be completely different.

Shut down your computer at 11 PM every night. Don’t watch the candles even if they look tempting; obsessing over them damages your mentality. If you can’t sleep, uninstall your trading app and reinstall it when you’re sober.

Be mechanical enough to find it boring—that’s how you survive long enough.

**Final words**

Going from $1,200 to $50,000 sounds like a miraculous story, but the core is simply "make as few mistakes as possible." Bitcoin and Ethereum markets are active every day, but once your principal is gone, it’s really gone.

Memorize these three rules until you can recite them in your sleep. Only then should you study wave t