Author: Adam

Compiled by: Shenchao TechFlow

Before getting to the point, please remember that trading is a complex and high-risk activity.

There is no method that allows you to quickly grow your account in a short period without experiencing any losses.

In fact, those who can grow their accounts quickly often do so at great risk, even coming close to going all-in.

The focus of this article is not to tell you to patiently wait for ideal market conditions, nor is it to teach you how to analyze the market in depth.

On the contrary, I will share some methods to help you achieve rapid account growth while reasonably controlling risks.

If you are still unfamiliar with basic concepts like 'risk management', I strongly suggest reading this article on risk management first.

If you find this article helpful, consider checking out other content on the blog or joining the Tradingriot Bootcamp for the complete video course, joining the private Discord group, and regularly updated trading strategies.

Why choose to trade in niche markets?

If you primarily trade large markets such as BTC, ES (S&P 500 futures), major forex pairs, or gold,

You will be directly facing retail traders like yourself while also competing with large institutional players, quant firms, and others.

This is mainly because these markets have extremely high liquidity, allowing large players to easily participate in competition.

While trading these markets is not impossible, if you do not have sufficient capital, there are actually more advantages in lower liquidity markets.

For example, many altcoin derivatives, NFTs, or on-chain coins do not attract large players due to insufficient liquidity in these markets to meet their trading size requirements.

When I began to delve deeper into the altcoin market, I often found the clearest trading signals in markets with lower liquidity.

At first, I was confident in these 'low-threshold' markets, but when I attempted to execute large positions, I found my orders stood out prominently on the order book, making me realize the disadvantages of insufficient liquidity.

However, for small account traders, this issue does not need to be overly concerned about, as liquidity issues will only truly affect you when your order size reaches high five or six figures.

Taking Lina on Velo as an example, the chart shows that potential breakout signals for Lina could be observed days before the actual breakout occurs.

Such opportunities may bring significant gains, but we also need to consider potential risks.

By checking Lina's trading volume and open contract data on the Laevitas platform, we can find that before the breakout occurred, Lina's daily trading volume was 16 million, and the open contracts were 4.5 million.

If this trade fails and you hold a large position, your stop-loss may result in actual losses far exceeding expectations due to slippage. But for small account traders, their position sizes are smaller, and stop-losses can often be triggered close to ineffective points, so they do not face this issue.

Low market cap alternatives and derivatives are not the only things you can participate in. On-chain tokens or NFTs are also included.

When trading, the most important thing is to be aware of where the 'meta' currently is.

For example, NFTs were very popular a few years ago, but they have since disappeared.

You need to understand the speed at which information spreads in this field to avoid taking unnecessary risks, while not missing out on significant gains due to premature selling.

On-chain trading is very challenging. Although you may see many success stories on platform X, in reality, the likelihood of increasing '1 SOL' to '1000' is very low.

In on-chain trading, there are some unique strategies you can use, such as tracking different wallets, analyzing holding distributions, or simply relying on common sense to avoid tokens that are heavily promoted by KOLs.

In addition, you will find that using simple support and resistance levels or trading indicators is often sufficient for trading, especially for tokens with larger market caps and lower exit risks.

Day Trading

Prices exhibit fractal characteristics. This means that if I show you a chart, it may be difficult for you to determine whether it is a daily chart, monthly chart, or 5-minute chart.

Moreover, for highly liquid markets, if you are not sufficiently familiar with them, it can be difficult to discern which specific market it is.

For example, the above shows the 5-minute chart of XRP.

If you choose swing trading, the trading frequency will be relatively low. Even when profitable, most of the time you will be patiently waiting for opportunities, which usually only occur 1-2 times per week in each market.

I will discuss swing trading in more detail later, but day trading is different; it provides immediate feedback, with many small fluctuations available for operation each day.

Therefore, if you engage in day trading and execute a small number of trades in each trading session, theoretically, your account funds will grow faster.

However, day trading is one of the most challenging areas of trading. A slight distraction or a small mistake can lead to losing all gains in just a few minutes, as quickly as you can make money.

I recommend that every beginner trader try day trading, as it allows you to quickly gain market feedback and accelerate the learning process.

One major advantage of day trading is that you can focus on markets with high liquidity, which makes trading scalable. If you focus on BTC, ETH, ES, NQ, gold, or major forex pairs, you won't encounter limitations on position size.

Nevertheless, day trading is very difficult and not suitable for everyone. It requires a variety of skills such as high concentration, quick decision-making, and decisive stop-losses.

Therefore, it is crucial to develop a detailed trading plan and strategy for every step. Once you enter a trade, emotions can affect your judgment, and that's when a pre-prepared plan comes into play.

There are many methods for day trading, such as operating through price trends, order flow, news, technical indicators, etc. Each method has its applicable scenarios, and there is no absolute superiority or inferiority.

If you are interested in my day trading and swing trading methods, you can check out the Tradingriot Bootcamp, which is a training course specifically designed for traders.

Trade using other people's assets

In recent years, the online prop firm sector has developed rapidly.

If you are new to such companies, you need to first pay an assessment fee and comply with trading rules in a simulated account to gain access to a funded account.

This model allows you to trade with larger funds, with the only cost being the payment of assessment fees.

However, if you are not sufficiently familiar with trading, you may waste funds by frequently paying assessment fees without ever obtaining a funded account.

Although prop firms often spark controversy, I believe for those with trading skills but lacking capital, this is a very good opportunity.

With the rapid expansion of this field, it has become particularly important to choose a reputable and stable company. In recent years, we have seen some companies refuse to pay profits, set rules that are nearly impossible to pass, or even go bankrupt.

I may be a bit biased here since I am directly involved with Breakout prop firm. But if you focus on cryptocurrency trading, Breakout is a very good choice. It offers daily payout services, has never refused payment, and has very reasonable assessment rules.

High time frame analysis and low time frame execution

If you find that day trading is not suitable for you, don't be discouraged. This approach can also help you quickly grow your account capital while being easier to operate.

In fact, this method is not limited to small accounts; I have personally completely transitioned to this trading style because I no longer want to spend a lot of time staring at charts.

Nevertheless, I still want to emphasize that my experiences over the past few years in day trading, researching different futures markets, and understanding market microstructures have been very important to me, and I am grateful to have gone through them.

Although we mentioned that prices have fractal characteristics, key points in the market at higher time frames like daily, weekly, or monthly often elicit larger market reactions compared to points on a 1-minute chart. This is because more traders and algorithms pay attention to these key points at higher time frames and take action based on them.

For example, at the end of February 2023, Solana rose to a daily resistance level before pulling back to the next daily support level. If a short position was established at the daily close and a stop-loss was set based on the 1-day ATR, a 2.5x risk-return (R) could be achieved within 18 days.

Of course, achieving a 2.5x return in 18 days is quite good. But if your account is small, for example, a single trade risk of $100, then earning $250 may not be exciting; in contrast, if the single trade risk is $10,000, earning $25,000 would seem very substantial.

If you want to quickly grow your account capital, you can switch to lower time frames while following high time frame (HTF) trading ideas. This means that your targets remain the same, but by executing trades on low time frames (LTF), you can narrow the stop-loss range, thus increasing position sizes.

You do not need to switch to 1-minute or 5-minute charts; H1 or H4 time frames are sufficient. Focusing too much on low time frames may increase risk-reward, but it also significantly increases the risk of being washed out before the market starts.

If you choose the H1/H4 time frame, you may still struggle to find ideal entry points or get stopped out before the market moves. However, in my experience, giving high time frame trading ideas 1-3 attempts at lower time frames usually yields better results than solely relying on daily charts.

Conclusion

Trading is not easy; it requires time and patience. However, as long as you manage risks well, even small amounts of capital have the opportunity to gradually grow into larger sums.

In trading, always try to think outside the box, maintain patience in execution, and develop a comprehensive trading plan.