Having navigated the crypto world for seven years, starting with a capital of 35,000 and now accumulating assets exceeding 60 million, with a stable monthly income of over 200,000 USD. Many ask what the secret is; there’s actually nothing mysterious—just 50% position sizing and steady, cautious trading. I’ve taught this approach to a few apprentices, one of whom doubled their profits in just three months. Today, I’m sharing my most practical insights, and how much you can grasp depends on your own comprehension.

**Money Management is the First Lesson**

Let’s start with the basics—divide your principal into 5 parts, investing only one-fifth each time. Set a 10-point stop loss, so a single loss is at most 2% of your total funds. Even if you hit five consecutive losses, your total loss remains within 10%. Conversely, set take profit at over 10 points; with this setup, why worry about getting trapped?

**Following the Trend is Key to Survival**

How to further improve your win rate? The two words: follow the trend. In a declining market, every rebound is a trap for false signals; in an upward market, every pullback is a buying opportunity. Comparing contrarian bottom-fishing and trend-following buying, which is more likely to generate profit? The answer is obvious.

Avoid coins that have experienced rapid short-term surges, whether mainstream or altcoins. Coins capable of sustaining a main upward wave are rare; after a short-term spike, continuing to rise is extremely difficult. Once a coin hits a high level and shows signs of stagnation, a decline becomes inevitable. Everyone understands this logic, but some still hold onto hope.

**Indicators Help, but Don’t Rely Blindly**

MACD is a useful tool for judging entry and exit points. When DIF and DEA form a bullish crossover below the zero line and stay above zero, it’s generally a solid signal to enter. Conversely, when MACD shows a death cross above zero, consider reducing your position.

There’s a term called “averaging down,” but I don’t know who invented it—this has caused many retail investors to suffer. The more you lose, the more you buy; the more you buy, the more you lose—this is the biggest trading taboo. The rule is simple: never add to a losing position; only increase your holdings when in profit.

**Volume Tells the Truth**

Volume and price analysis are paramount. A breakout with increased volume from a low consolidation zone is worth noting. But if volume surges at a high level without a price increase, it’s best to exit decisively. Volume is the soul of the crypto market; it reveals traders’ true intentions.

**Moving Averages Define the Pattern**

Focusing only on coins in an uptrend offers the highest probability of success and spares you from guessing whether prices will rise or fall. Just look at the moving averages: an upward 3-day MA indicates short-term bullishness; an upward 30-day MA suggests medium-term strength; an upward 84-day MA often signals the start of a main upward wave; an upward 120-day MA indicates a long-term bullish trend. Choosing the right pattern naturally improves your mindset.

**Review as a Step to Progress**

Persist in daily reviews—check whether your holding logic still holds, whether the weekly trend aligns with your initial expectations, and if the trend has changed. Timely review allows you to adjust your strategy promptly. This habit is more valuable than any indicator.