After eight years, from an initial 20,000 yuan to over 50 million, I have always adhered to a principle: only use 50% of the position. It may seem conservative, but the monthly returns can actually stabilize at 70%. This method was later passed to my apprentices, who followed it step by step, and their assets doubled in just three months. Today, I will share these secret insights all at once.

First is the core of fund management—divide the principal into 5 parts, investing only one-fifth each time. Set a 10-point stop loss; this means losing only 2% of the total capital if wrong once, and only 10% if wrong five times. Conversely, set take profit at more than 10 points; as long as the direction is correct, the probability of being trapped is actually very small.

Want to further improve your win rate? Two words: follow the trend. During a downtrend, every rebound tempts more buyers; during an uptrend, every pullback could create a golden opportunity. Many people understand this simple logic, but execution often leads to confusion.

Another important pitfall—avoid coins that have experienced rapid short-term surges, whether they are mainstream or altcoins. Coins that can go through several main upward waves are rare in themselves, and the difficulty of continuing upward after a short-term surge increases sharply. When the price stagnates at high levels and can’t be pushed further up, it naturally begins to decline. The logic is simple, but some still want to take a gamble.

Regarding specific operations, you can use MACD to judge entry and exit points. When DIF and DEA form a golden cross below the zero line and then break above zero, it’s a fairly reliable buy signal. Conversely, if MACD forms a death cross above the zero line and moves downward, consider reducing your position.

The easiest way to lose money is the pit of "averaging down." Many retail investors stumble here—losing more and more, adding to losses, which is the most taboo operation in crypto trading. It’s like pushing yourself into a dead end. Remember one thing: only add to winning positions; never average down when losing.

Volume is the soul of the crypto market. When the price consolidates at low levels, a volume breakout must be watched closely; at high levels, if volume stagnates and the price stops rising, you must decisively exit. This is the most basic and practical application of volume-price relationship.

In terms of trading choices, only focus on coins in an uptrend for maximum efficiency. A 3-day moving average turning upward indicates short-term rise; a 30-day moving average turning upward indicates medium-term rise; only when the 84-day moving average turns upward is it a main upward wave; a 120-day moving average turning upward indicates a long-term trend. Different moving average combinations help you see opportunities at different levels.

Finally—stick to review and reflection. After each trade, check whether your position logic has changed, whether last week’s candlestick pattern still matches your initial judgment, and whether the trend direction has shifted. Adjust your strategy in a timely manner. This is the essential path from a retail trader to a consistently profitable trader. The market always exists; the key is to respond to market fluctuations with a systematic mindset.