I have experienced three margin calls and moments of despair carrying a debt of 200,000. Those days really made me want to give up everything.

But I didn't.

In the end, I scraped together 50,000 yuan and slowly compounded my position using the most primitive and straightforward trading strategies, eventually growing my account to 42 million. What I learned from this process has nothing to do with technical indicators or fancy tricks — the real secret is actually just four words: small losses, big gains.

Cut losses early, let profits run.

I have long given up on pursuing a high win rate. Now, I only focus on one number each day: the risk-reward ratio. Ten trades, only three winners? No problem. The key is that the money earned from those three wins can recover all seven losses. Operate this way in the long run, and the winner will naturally be you.

You might laugh when I share my method — it’s really that simple:

Use basic indicators to judge market direction; only go long in an uptrend, never bet against the trend. Be extremely precise about entry points — either at the bottom or right when the trend just starts — so that the stop-loss distance is minimal. Even if you’re wrong, the loss remains manageable.

**The first bottom line: risk management always comes first.**

Keep your initial position light. How light? Light enough that your account can withstand the worst consecutive losses in history and still continue trading. Stop-loss levels act like firewalls; once key support is broken, I exit immediately without hesitation. Even if the price rebounds later, I won’t regret it because another opportunity will come. I’ve long since stopped holding onto losing positions or adding to losses.

**The second key point: only add to a position when floating profits appear.**

When the price retraces and then reclaims the previous high, I use the pyramid averaging method to gradually build a larger position, while moving the stop-loss upward along the way. The initial position is already protected with a trailing stop-loss to lock in risk; the additional positions are the real chips for betting on a big move. As long as the price continues to rise, I hold, and when the next retracement occurs, I add again, moving the stop-loss accordingly. This cycle continues until the stop-loss is triggered or a clear top signal appears.

**The third principle: never force take-profit at the top.**

I wait for typical top formations or divergence signals. I can accept some retracement of floating profits. Perfect market trades don’t exist; those sudden reversals are part of the market, not your profit to be forcibly taken. Trying to chase those will only turn gains into losses.

Trading is not a holy grail. Those who survive long-term in the market are those who treat discipline as life and consistency as faith. Any simple method works as long as you stick to principles and execute without deviation. The market will naturally reward you.