A friend asked me, is there a stable way to make money through trading? To be honest, this market is not short of opportunities; what’s truly lacking is self-control and disciplined execution. I’ve seen too many people driven by market emotions, chasing highs and selling lows, ultimately becoming the "leeks" that get harvested. Today, I’ll share a practical system I’ve developed. The core logic is simple: replace emotional judgment with a systematic framework, and rely on discipline to protect profits.

**Level One: Capital Management — Staying Alive Is More Important Than Making Money**

The first thing in trading is not thinking about how much to earn, but calculating how much you can lose at most. My bottom line is strict: never operate with full position; always diversify. I divide my account into three parts, each with its own role:

Core position accounts for 50%, dedicated to mainstream cryptocurrencies like Bitcoin and Ethereum, which I hold long-term. Unless a black swan event occurs, I don’t sell. This is the long-term foundational holding.

Trading position accounts for 30%, used for swing and short-term opportunities. However, no single coin’s position exceeds 6% of the total funds. Even if one coin encounters issues, the damage is limited.

Reserve position accounts for 20%, reserved for bottom-fishing or emergency situations. Usually, these funds are placed in certain financial channels to earn some returns.

Even if your capital isn’t large, you must stick to this framework. For example, with 10,000 yuan, only invest 2,000 each time, and keep individual losses within 10%. Even if you make five consecutive wrong trades, you only lose 10% of your total capital. Keeping drawdowns in check allows you to turn the tide when the real market opportunity arrives.

**Level Two: Trend Judgment — Going with the Trend Is the Key**

I’ve seen too many people fall into the trap of "counter-trend" trading: trying to buy the dip during a downtrend, only to buy halfway up; or during an uptrend, unable to hold, taking small profits and then exiting. In fact, the real big profits come from following the trend. How to judge the trend? I mainly look at these signals:

Moving average alignment is the first indicator. When they are arranged in a bullish order (short-term MA on top, mid-term in the middle, long-term at the bottom), the market sentiment is bullish. Conversely, it indicates a bearish trend. It’s very intuitive.

Volume confirmation is crucial. During an uptrend, sustained moderate volume expansion indicates market recognition of the rally. Conversely, if volume shrinks, be alert.

Discipline is more important than anything. Once the trend judgment is broken, exit immediately. Don’t hesitate with thoughts like "maybe it will rebound." Market rebounds happen too often; there’s no need to hold on stubbornly at one position.