Eight years in the market, from only reading K-line charts to a stable 70% monthly return, this experience has taught me—there are no shortcuts to making money in the crypto world, only rules.

The initial capital of 1200U was maintained through strict risk control to survive until today. Now, I will review the five core trading principles as a reference for those who want to establish themselves in this market.

**First: Capital Segmentation Management**
Divide the principal into 5 parts, using only 1 part per trade. Set a hard stop loss of 10 points, meaning at most a 2% loss of total funds per mistake. Take profits without greed; exit once gains exceed 10 points. The benefit of this approach is that even after 8 consecutive mistakes, the account still retains 4 parts of the original capital, providing a chance to turn things around.

**Second: Follow the Trend**
Rebounds during a downtrend are often trap moves; true buying points are during pullbacks in an uptrend. This principle is simple in theory but difficult to execute. However, once embedded into your trading system, it can help avoid many chasing-highs and getting caught.

**Third: The Trap of Short-term Explosive Coins**
Use MACD for technical analysis. Only consider entering after a bullish crossover below the zero line; if a death cross appears above the zero line, exit immediately. Don’t guess coins or gamble out of frustration—follow the indicators strictly.

**Fourth: Principles for Adding Positions**
Only add to positions when in profit. Observe volume and price action—volume breakthroughs at low levels are signals; volume increases at high levels without price movement should be a sign to exit. Never add when losing; this is the bottom line for protecting your principal.

**Fifth: Cycle Resonance**
Only trade coins in an uptrend. Simultaneously monitor the 3-day, 30-day, 84-day, and 120-day moving averages; as long as they turn upward, they indicate opportunities at different cycles. After each trade, conduct a review to ensure you don’t repeat the same mistakes.

These five rules may seem basic, but they are distilled from 8 years of repeated losses and recoveries. Following this system can reduce 90% of detours. Compared to chasing quick profits, a steady and reliable profit system is more trustworthy.