Recently, I witnessed an unbelievable case: someone started with $800 principal and eventually turned their account into $74 million.

To be honest, at first I thought this person was just bragging. But after carefully reviewing their trading path, I realized that what truly turned things around for them wasn't some mystical indicator, but three seemingly simple position management principles that few people actually stick to.

**Initial Stage: Testing the Waters with Small Positions**

They started by using $3,000 to test the market direction. The benefit of this position size is that if they're right, they won't miss out on profits due to being under-invested, and if they're wrong, they won't be wiped out. After several rounds, their accuracy improved significantly, and their mindset became more stable.

Many people lose money because they go all-in right from the start—if they're even slightly off, most of their principal is wiped out.

**Growth Stage: Profit Segregation and Rolling**

After each win, they would immediately withdraw or transfer 30% of the profits to a stable account, and continue trading with the remaining 70%. The logic is simple: even if they lose later, at least part of the gains are secured; if they keep winning, their principal pool keeps growing.

This move essentially treats "earned money" and "original principal" separately, preventing a single drawdown from erasing all previous efforts.

**Mature Stage: Strictly Enforcing Risk Control**

Once their account exceeded $5,000, they started following a strict rule: set take-profit and stop-loss points for every trade in advance, and never change the plan due to greed or panic. If the trend is clear, they follow it; if it's unclear, they sit on the sidelines.

Switching from a gambler's mindset to a risk-control mindset is the hardest, but also the most crucial step. The crypto world isn't short of overnight riches stories—what's missing are people who can hold on to their profits.

Looking back at the path from $800 to $74 million (even though that multiple does seem a bit exaggerated), the core boils down to three words: **position sizing**. It's not about going all-in every time, but about matching your position size to risk at different stages.

Many people lose money not because their market calls are wrong, but because their position management is chaotic—they go all-in when they should be testing the waters, and get timid when it's time to scale up.

If you're still relying on luck in your trades, maybe it's time to stop and think: should you set some position management rules for yourself?