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Having immersed myself in the crypto market for seven years, I have witnessed the entire process from starting with 35,000 yuan to reaching an asset scale of over 60 million. Honestly, this path hasn't been smooth sailing, but I have gradually developed a relatively stable trading system. Now, I maintain a steady monthly profit of around 200,000 USDT.
Many people ask me what my secret is. To put it simply, it’s **reverence for position sizing and respect for trends**. I’ve shared this method with a few students, one of whom doubled their assets in just three months, which further convinced me of the feasibility of this logic. Today, I’m bringing out my most secret techniques—how much you can learn depends on your comprehension.
**First Core Point: Money Management is the Foundation of Survival**
Divide your funds into five parts, and only use one-fifth each time you enter a position. This may sound conservative, but it’s the reason I’ve been able to survive in the market for so long. Set a 10-point stop-loss on each trade; if a misjudgment causes a 2% loss of total capital, it’s not a big deal. Even if you make five wrong calls in a row, you only lose 10% of your total funds. In comparison, most people going all-in once might be eliminated immediately.
Correspondingly, as long as your trend judgment is correct, set take-profit points at more than 10 points, or even more. This way, one successful trade can cover multiple small losses. In the long run, do you still fear getting trapped?
**Second Key Point: Follow the Trend, Don’t Always Try to Bottom-Fish**
Many traders always want to trade against the trend, thinking that bottom-fishing is the shortcut to wealth. But reality is often harsh—each rebound during a downtrend is a trap, and during an uptrend, every dip tests support.
My experience is: instead of betting on the bottom, better to buy low and follow the rising trend. Passively wait for more stable signals rather than actively guessing market turning points. This mindset will save you from many detours.
**Third Rule: Beware of Short-Term Explosive Coins**
Whether mainstream coins or altcoins, those capable of multiple major upward waves are rare. After a rapid surge in the short term, the momentum to continue rising is usually exhausted. It’s simple—high-level stagnation indicates weak follow-up lifts, leading naturally to a correction. Yet, some can’t resist gambling on it, often resulting in chasing highs and getting cut.
**Use Technical Analysis to Assist Decision-Making**
The MACD indicator is particularly useful here. When the DIF line and DEA line form a golden cross below the zero line and are about to break above zero, it’s a relatively stable entry signal. Conversely, when MACD forms a death cross above zero and moves downward, it’s time to consider reducing or closing positions.
**Fifth Principle: Never Add to Losing Positions**
I don’t know who invented the concept of “averaging down,” but these two words have ruined countless retail investors. I’ve seen too many people try to lower their average cost by adding to losing positions, only to lose more and finally run out of funds. This is the biggest taboo in crypto trading—it pushes you from a difficult situation straight into the grave.
The correct approach is: add to winning positions when profitable, allowing winners to run. When losing, focus on stop-loss and review, rather than risking everything to hold on.
**Volume and Price Dialogue**
Volume truly reflects the market. When a coin consolidates at a low level and suddenly breaks out with increased volume, it’s worth paying close attention—possibly the start of a new trend. But if volume surges at a high level without price moving up, it’s time to decisively clear your positions, as it often signals institutional distribution.
**Trade Only in Uptrend Markets**
My golden rule: only trade coins in an uptrend. This maximizes your win rate and spares you from guessing bottoms or tops.
Use moving averages to judge—short-term upward trend is indicated when the 3-day MA turns up; medium-term opportunities appear when the 30-day MA turns up; the main upward wave starts when the 84-day MA turns up; a strong long-term rise is signaled when the 120-day MA turns up. Choose the relevant moving average signals based on your trading cycle.
**Final Point: Continuous Review and Self-Adjustment**
Every trading cycle should be reviewed. Check if your position logic still holds, whether technical signals match your initial judgment, and if the trend has changed. Markets evolve, and so should your strategies. Don’t be bound by past successes; promptly identify risk signals to survive long-term and keep earning.
This system isn’t mysterious—its core is **risk management, trend respect, and calm review**. Stick with it, and you’ll find that the crypto market isn’t as chaotic as it seems.