Three years ago, I took a big hit in trading, losing three million in a single blow. That period was truly despairing, but it was also that painful experience that made me thoroughly reflect on what I did wrong.

Starting over from four thousand yuan, I spent three full years testing a set of methods—what truly allows you to survive in the market. The conclusion was very sobering: no one can achieve long-term profits through luck; a stable system is the lifeline.

My current trading approach is actually very simple. Divide your capital into five parts, only move one part at a time, and set a 10-point stop loss. Calculated this way, losing once means at most losing 2% of your total capital; even if you lose five times, you can still turn it around. When you do it right, hold on, and take at least 10 points profit to fundamentally avoid the risk of being trapped.

Trading is most about judging the trend. In a declining market, those rebounds are mostly trap rebounds; in contrast, the pullbacks in an uptrend give us real entry opportunities. Be especially cautious of coins that experience violent short-term surges—whether mainstream coins or altcoins, they are equally dangerous. Stagnation at high levels often signals the beginning of a decline.

MACD is my good helper. When DIF and DEA form a golden cross below the zero line and stand above zero, that’s a steady entry signal; once a death cross occurs above zero, I decisively reduce my position. I have a strict rule I never break: never add to a position when in loss. Adding more only increases losses, ultimately forcing you into a dead end. Add to positions only when in profit—that’s the correct way to follow the trend.

Volume reflects the true state behind the coin price. Breakouts with volume at low levels are worth paying attention to, but if volume surges at high levels and the price stagnates, you must exit immediately. I focus on coins with three moving averages trending upward together, operating along the short, medium, and long-term momentum. Daily review and confirmation of my holding logic are essential; once the trend changes, I adjust my strategy immediately.

In the past, I was navigating blindly in the market. Now, I’ve organized these years of insights, hoping to help you avoid detours. The essence of trading is actually very simple—not gambling wildly, but maintaining a steady and cautious approach, following the trend, and only then can you achieve steady and long-term success.