Having navigated the crypto market for many years, my deepest realization is that—controlling risk is far more important than chasing huge profits. From an initial capital of a few tens of thousands to the current scale, it’s not about repeatedly making big bets, but about establishing a complete and executable trading system.

I use a 50% position strategy to steadily build up, keeping monthly returns around 70% (relatively conservative but consistently reliable). I’ve shared this method with friends around me, and they typically double their principal in about four months. Today, I’ve decided to share these experiences, summarized in real money, without reservation.

**Core Position Management Rules**

Dividing funds into 5 parts is the first step. Only invest one-fifth of your total capital each time, with a 10-point stop loss. The benefit of this approach is— even if you make mistakes five times in a row, your total loss is only 10% of your principal. Once your judgment is correct, set a take profit of more than 10 points to lock in gains, making it difficult to get trapped.

**The key to increasing win rate is trading in the trend**

Simply put, it’s two words: follow the trend. In a downtrend, every rebound is a trap for false signals. In an uptrend, every dip could be a golden opportunity. Many people like to buy the dip, but in reality, the success rate of buying low (buying at higher floors along the upward trend) is often higher. The reason is simple—the power of the trend far exceeds the attraction of individual price points.

**Avoid coins with short-term explosive growth**

Whether it’s mainstream coins or small caps, steer clear of assets that surge rapidly in the short term. Few coins can sustain multiple major upward waves; most struggle to continue rising after a brief spike. During high-level stagnation, they often can’t push higher and naturally start to decline. Although this logic is simple, many still want to gamble, and the results are often disappointing.

**Technical analysis aid: MACD indicator application**

MACD is very useful in practical trading. When the DIF line and DEA form a golden cross below the zero line and break above zero, it’s a relatively solid entry signal. Conversely, when MACD forms a death cross above zero and moves downward, it’s a sign to reduce positions. These mechanical signals help you avoid many emotional decisions.

**Never add to a losing position**

Adding to a losing position has harmed too many retail investors. The more you lose, the more you add, and the more you lose—this is the most taboo operation in crypto trading, equivalent to pushing yourself off a cliff. The correct approach is the opposite: add only when in profit, stop operating when in loss, and wait for the next clear opportunity.

**Volume and price action are fundamental**

Trading volume is key to determining whether a breakout is genuine. When a volume surge occurs at a low consolidation, it’s often a sign that the trend is truly starting. But if volume surges at a high level with stagnation, it’s time to exit decisively, as it usually indicates the main players are offloading.

**Using moving averages to judge different trend levels**

Only trade coins in an uptrend, maximizing your chances and avoiding wasted effort. The 3-day moving average turning upward signals short-term upward movement; the 30-day moving average turning upward indicates medium-term growth; the 84-day moving average turning upward suggests the start of a major upward wave; and the 120-day moving average turning upward indicates the formation of a long-term bull market. With this system, you can quickly identify investment opportunities across different timeframes.

Markets always exist; the key is to capture them with a systematic mindset. Build your own trading framework, strictly follow stop-loss and take-profit rules, follow the trend rather than oppose it, and only then can you steadily advance amid the ups and downs of the crypto market.