**Trading with small funds is not about luck, but about surviving long enough**

Many people look down on a $500 account, thinking that this amount can't even stir up waves in the market. But I've seen too many beginners blow up their accounts within two weeks—often the problem isn't lack of money, but that they simply can't play the game properly from the start.

A friend started trading in the crypto space at the end of last year, with his first deposit being this amount. His mind was full of dreams of "doubling his money," and I immediately shattered that illusion: "Forget about all-in bets, first learn how to survive."

**The key is actually simple—divide your position**

Split the $500 into 10 parts, trading only $50 each time, and stop after a 5% loss on a single trade. Sounds boring, right? But that’s the difference. In the first week, I told him to do only 3 trades, focusing not on how much he makes but on observing his win rate and emotional reactions. As a result, after a month, his principal was still $480—avoiding liquidation, which already puts him ahead of over 90% of beginners.

**Then comes position rolling—using profits to bet on profits**

The essence of rolling positions lies in a seemingly simple formula: earn 5%, lock in 1%, and let the rest run. For example, if a trade earns $5, immediately transfer $1 to a safe account, and continue trading with the remaining $4. After winning three times in a row, use the accumulated profits to open new positions—so even if you lose, only the profits are affected, the principal remains intact.

The underlying logic of this approach is based on three points:

1. Only pursue certainty. Breakouts after a big drop, clear trend directions—wait for these opportunities, no matter how long it takes. Not all fluctuations are worth betting on.

2. Control your trading frequency. Limit yourself to a maximum of 3 trades per day, avoiding excessive costs from fees and emotional exhaustion. The market is always there; there's no need to go all out.

3. Stage-wise exit. Stop immediately if the principal drops by 2%, and take some profits when exceeding 20%—not all at once, but in planned batches.

Small accounts are actually the best testing ground. No one expects $500 to make you rich overnight, but if you can develop a rhythm during this process and truly understand risk management, your gains will become more stable as your capital grows.