Making money in the crypto world may seem like mysticism, but it’s actually a game of probabilities—most people lose due to poor position management and psychological control. I’ve seen too many accounts drop from millions to three digits, and I’ve also seen those who use the right methods to snowball in a bear market. The difference isn’t luck; it’s whether you truly understand the logic of risk and compound interest.

Today, I’ll share some core principles that have been repeatedly validated in the market.

**First Trick: The Correct Approach to Left-Side Bottom Fishing**

During sharp declines, everyone wants to go all-in, but that’s precisely the most dangerous moment. Instead of betting everything at once, it’s more prudent to use a "layered bottom-finding method."

Test position at 20%—wait until the price drops to a relatively low level, with RSI below 30 for three consecutive trading days and trading volume significantly shrinking, as a signal. This isn’t the bottom, just a probing point.

Defensive position at 30%—add to your position when the market stabilizes and previous support levels are found. Anchor your cost at key support levels to leave room for subsequent rebounds.

Main position at 50%—only go all-in when clear technical signals appear, such as volume breaking through the 30-day moving average. Set strict stop-loss at 5%; if the level breaks, exit immediately—no second chances.

The benefit of this approach is that the intervals between adding to positions are no less than 10%, preventing costs from becoming too dense. Once a rebound occurs, dispersed costs mean more room for stop-loss and less risk.

**Second Trick: The Rhythm of Adding on Right-Side Rallies**

Chasing during a major upward wave and chasing randomly are two different things. Use probabilities and technical indicators to select entry points.

Pioneer position at 30%—enter when the 5-day moving average crosses above the 10-day, ensuring volume exceeds 1.5 times the average of the previous five days. This is a typical signal of the start of a major upward wave.

Main force position at 30%—wait for a pullback to the 30-day moving average without breaking below, combined with MACD’s second golden cross. This indicates the correction is just a shakeout, and the bullish momentum remains.

High-risk position at 40%—when volume breaks through previous resistance levels and the sector’s heat enters the top three in the market. At this point, market sentiment is fully mobilized, and the probability of success is highest.

A simple taboo: avoid chasing stocks that surge more than 30% in a single day, as that often signals profit-taking and distribution.

**Third Trick: The Iron Law of Risk Management**

This is the part that determines long-term survival. Many people’s issues aren’t in choosing coins but in disciplined loss management.

Set a hard stop-loss of 5% for daily drawdowns—regardless of the reason, once hit, exit immediately. It sounds strict, but it’s this strictness that keeps accounts alive longer. Opportunities to make money are always present, but your principal is only one.

After a 50% profit, withdraw all principal and only use profits to chase the next wave of gains. This reduces psychological pressure and lowers the cost of mistakes.

Always divide your position into three layers: 50% in benchmark assets like BTC and ETH to participate in both bull and bear markets; 30% in trending hot spots to capture short-term gains; 20% in stable assets or cash to maintain liquidity. With this setup, no matter how the market moves, you have corresponding strategies.

**Why is this method effective?**

The market is never short of opportunities; what’s lacking is the ability to survive until they arrive. Many trading experts go bankrupt because of a single psychological slip or a lucky guess that turns into overconfidence, ultimately leading to failure.

The core of these rules is simple: use objective rules to fight human greed and fear. Technical indicators don’t lie, and probability statistics don’t deceive. The people who make real money are often not the ones with the strongest prediction skills but those with the best discipline.

Controlling drawdowns and letting compound interest do its work—there are no shortcuts, only methods. Starting today, changing your position habits can be a great beginning.