Principal $900, turned into $80,000 in four months. No contracts, no hundredfold gambling, all executed according to plan. Recently, someone asked me how I turned things around; actually, there are three core points.

Last year, I guided a friend through trading, starting with $900, steadily growing the account to $80,000. The right decisions he made this time are worth breaking down.

**First Tip: Position Sizing for Risk Management**

Divide the $900 into three parts. $300 for intraday short-term trades, take profit at 3% and then exit—never greedy. $300 for catching major trends, only act if there's a confirmed opportunity of over 15%. The remaining $300 is always for emergency use; never touch it regardless of emotions.

Position sizing isn’t about being timid; it’s about leaving yourself a way out. Many people go all-in and end up losing everything because they don’t leave room to breathe.

**Second Tip: Catch the Main Bullish Waves**

70% of the market time is sideways; don’t waste energy on choppy movements. Wait for a clear breakout and a confirmed trend before entering. That’s when the probability of winning is higher.

Once in the trade, if profits reach 25%, take out some of the gains first, let the rest run. This way, you’ve already secured your safety, and the psychological pressure of subsequent moves is much lower.

**Third Tip: Strict Discipline**

Three unbreakable rules: limit single-loss to within 2% of the principal, cut losses immediately; when profits reach 5%, close half of the position, and set the rest to break-even; never add to losing positions—averaging down leads straight to liquidation.

In these four months, the most frequent activity was waiting. While others kept losing money in sideways markets, he was accumulating. When others doubled down to recover losses, he promptly cut losses and exited.

**The Truth About Small Capital Turnarounds**

The core is never about being aggressive but about stability. Position sizing is about survival, trend trading is about making clear money, and discipline locks in profits.

If you’re constantly kept awake by a few hundred dollars’ fluctuations, or panic at the first sign of movement, the problem isn’t the market—it’s your trading system that’s incomplete. $900 can grow to $80,000, but $80,000 can also vanish instantly. The difference lies in whether you can stay patient and stick to those basic rules.

One last point: With the Fed’s rate cut expectations rising and market uncertainty increasing, risk management becomes even more critical. Whether trading short-term or catching rebounds, position sizing and discipline are always the top priorities.