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After years of navigating the crypto world, I’ve noticed a phenomenon: the people who truly make money are often not the ones with the biggest guts. I used a 30% position to make a 60% profit, and later taught this method to two retail friends—one gained 50% in two months, and the other doubled in three months. Today, I want to organize these experiences, which might be helpful for small fund players.
**Core Logic: Divide your funds into 6 parts, only move one part at a time**
What are the benefits of this approach? Suppose your stop-loss is set at 6 points; a single loss would only be 1% of your total capital. Even if you make 8 wrong trades in a row, your total loss is only 8%, leaving enough room for maneuver. For take-profit, I usually set it above 12 points, creating a pattern of earning more and losing less, which greatly reduces the chance of getting caught in a trap.
**The key phrase is two words: Follow the Trend**
Rebounds in a downtrend are mostly trap setups—don’t try to bottom fish. Corrections in an uptrend are genuine opportunities. Small funds can’t afford to waste energy, so stability is the first principle. Don’t be attracted by coins that surge wildly; whether mainstream or altcoins, the probability of a sharp rise after a quick spike is almost zero. Buying at high levels will only trap you.
**Use MACD to understand entry and exit points**
A bullish crossover below the zero line and breaking above zero is a steady entry signal. Conversely, when the MACD forms a death cross above the zero line, it’s time to reduce your position—don’t fight the trend.
**The deepest pit is averaging down**
Adding more when you’re already trapped is a common mistake among retail traders. You shouldn’t average down when losing; instead, cut losses promptly. Only when in profit should you add to your position gradually, allowing profits to compound.
**Volume also speaks**
Watch for volume breakthroughs at low levels—this often indicates genuine buying. But if volume surges at high levels without further price increases, it’s time to exit. Mismatched volume and price movements are usually traps.
**Only chase coins with a trend**
Use the 3-day moving average for short-term trades, the 20-day for mid-term, and only chase the main upward wave when the 60-day is trending up. Avoid coins in a downtrend; that’s a waste of time and money.
**Daily review is essential**
Check whether your holdings’ logic still holds, observe the weekly K-line trend, and adjust your positions if the trend changes—don’t be stubborn. Small funds need this kind of flexibility.
Ultimately, making money in crypto is never about reckless risk-taking or gambling; it’s about controlling your position size, waiting for the right opportunities, and executing stop-losses. Small funds don’t need to rush; follow the rules, and slowly grow your small capital into a larger one.