If Xiaoyi uses four months to increase his original capital of 70,000 yuan to 250,000 yuan, his account will now have a monthly income of about 180,000 yuan.

If you want to slowly grow a small amount of capital, but your principal is too small (less than 30,000), then it is not suitable, because a tenfold profit of a few hundred or a few thousand yuan is not as high as a 20% to 30% profit of several million yuan. In addition, with a small principal, you will lose less in the first stage, and it is difficult to remember the lesson deeply. However, you need to pay tuition to the market to improve your cognition before trading.

Stage 1: Losing money

Reasons for frequent trading and losses: The essence of trading is to find the opportunities that you are best at, and you should not do things that you don’t understand.

Xiaoyi prepared five trading systems. When he made money, he increased his positions frantically, and when his positions were liquidated, he changed systems. As a result, he suffered continuous losses due to frequent trading.

Because every trading system has profitable and declining periods, it is unrealistic to avoid the declining period and hit the profitable period.

People need to experience losses first to pay the tuition fee, and only after they have a trading system built with real money can they make money. At this stage, they will definitely lose money.

Stage 2: No-profit stage

Mentality problems lead to failure to make money: After having a trading system, if the currency fluctuates and breaks through the previous low to form a beautiful structure, the system should enter the market with a heavy position, but due to previous continuous stop losses, people are afraid of stop losses again and close their positions in advance, missing out on subsequent new highs.

Many people cannot help but make unfamiliar transactions, or follow the crowd when they see others making money (non-system opportunities), which leads to selling at high prices and missing out on losses, and also affects their mentality.

In fact, as long as you backtest the trading system until you are satisfied and execute it according to the system, you can make money, but many people can't do it, so they don't make money at this stage.

Stage 3: Earning Money

Stable profits and adjustment of mentality: If you can get through the first two stages, you will be able to make stable profits, and at this time the only concern may be your mentality.

If you want to satisfy your desire to make small money big, you need to give up the desire to take care of emotions.

If you want to take care of your emotions, you can use loss-fixing to manage your positions. Position management and emotion management are coupled with each other.

Therefore, in order to grow a small amount of capital, one needs to go through three stages: losing money, not making money, and making money. The goal is to own and execute your own trading system.

Trading is not difficult, but the process of building the system is time-consuming and requires patience!

Follow me, I will teach you in the next issue how to achieve a 99% utilization rate of large funds