My cousin entered the market with 5000U, and by the third day, his account was down to 3200. He came to ask me why, and when I looked at his trading records, I was speechless—five trades all with full leverage, three wrong guesses followed by adding to his position, then two more mistakes and his account was wiped out. A classic case of "didn't choose the wrong coin, but lost the money."

Later, I gave him a trading framework, and after three months, he brought his account back to 4800. Although he didn't get rich, at least he could sleep peacefully. Today, I’m sharing this approach publicly—helping one person is helping everyone.

**First Tip: Divide your money into five parts, each with a 2% stop loss**

Split your total funds into five portions, only use 20% of your capital for each trade, and set your stop loss firmly at 2%. What's the benefit of this? Even if you lose five times in a row, your total loss won't exceed 10%, and you'll still have enough bullets to turn things around. On-chain data shows that new traders average 21 trades in their first month; using this method, their maximum drawdown dropped from 38% to just 9%.

**Second Tip: Trend outweighs faith**

In December 2023, BTC's daily EMA30 started trending downward. I advised him not to bottom fish, and he stayed out of the market. As a result, the price fell all the way to around 40k, and he avoided a 25% decline. Many people in the market like to shout slogans encouraging bottom fishing, but following the trend is always more reliable than relying on faith.

**Third Tip: Don't chase after explosive coins**

Coins that surge 300% in three days are usually pump-and-dump schemes, with about 80% of the gains wiped out within two weeks. In December, a MEME coin surged 450% in one day. He resisted chasing it, and five days later, the coin returned to its starting point. Staying safe is more practical than chasing after quick gains.

**Fourth Tip: Use MACD zero line as a signal**

Consider going long only when a bullish crossover occurs below the zero line, and reduce your position immediately when a bearish crossover appears above the zero line. This basic signal can filter out half of the false signals. Backtesting shows a success rate of 64%, much more reliable than guessing.

**Fifth Tip: Add to winning trades, don’t hold on to losing ones**

Add to a winning position every time it gains 10%, allowing profits to compound. Conversely, adding to a losing position only deepens the trap. He used this method to grow his SOL profit from a small position to +38%, while others who kept adding to losing positions still held SOL at -15%.

**Sixth Tip: No volume, no move**

Low volume rise indicates genuine capital inflow; high volume with stagnant price suggests main players are offloading. On December 9, APT experienced a massive breakout. He entered with a small position, but volume started to shrink the next day. He immediately reduced his position, and later APT retraced by 12%.

**Seventh Tip: Use moving averages as your navigation**

Use the 3-day moving average for short-term trends, the 30-day for medium-term rhythm, the 84-day for the main upward wave, and the 120-day for long-term direction. Make decisions based on which MA the price is near—don’t try to guess tops or bottoms. Follow the trend, and you won’t get lost.

**Eighth Tip: Daily three-question review system**

During review, ask yourself three questions: Is the logic sound? Is the signal confirmed? Is my emotion driving the trade? Write it down in a memo and review weekly. He later found that 83% of his losing trades were driven by emotion, and after that, he completely blacklisted such trades.

Markets are always there; opportunities never wait. To keep pace in this market, you need a systematic methodology.