A decade of trading experience, from starting with nothing to accumulating assets of 50 million, I have developed a methodology to master this process—the "50% Position Size Rule." Recently, a disciple doubled their holdings in just three months, so I decided to share this complete mental approach, which might help you avoid several years of detours.

The core logic is simple: divide your capital into five equal parts, and only invest one part at a time. Even if your judgment is wrong, a single loss is strictly limited to 2% of your total funds (with a 10-point stop-loss). Conversely, once the direction is correct, take profit once gains exceed 10 points and exit. This disciplined execution allows you to survive mistakes and accumulate gains in the right moves.

Want to improve your win rate? One word is enough—momentum. Any rebound in a declining market is a trap for false signals; real opportunities appear during pullbacks in an uptrend. Never blindly buy the dip in a downtrend—that's where most losses begin.

Regarding coin selection, stay away from assets that have experienced short-term surges. Whether mainstream or altcoins, continuous main upward waves are almost nonexistent. Stagnation at high levels indicates waning momentum, and betting on probability often results in heavy losses.

On the technical side, MACD's effectiveness is severely underestimated. A golden cross forming below the zero line and then breaking above it is a genuine, reliable entry signal. Conversely, a death cross forming above the zero line and breaking downward suggests it’s time to reduce your position.

The key is not to chase losses. I’ve seen too many people keep adding to losing positions, only to sink deeper. The true philosophy of position management is: add when profitable, never average down when losing. This is a psychological battle and a capital battle.

Volume and price movement together reveal the truth. Pay attention to gentle volume breakthroughs at low levels, and be cautious of high-volume stagnation at high levels. Volume is always more honest than price.

The bottom line for coin selection: only trade assets in an uptrend. A 3-day moving average trending upward indicates short-term opportunities; a 30-day moving average rising suggests medium-term positioning; an 84-day moving average upward often signals the start of a main upward wave; and a 120-day moving average trending upward confirms a long-term macro pattern.

Finally, perhaps the most crucial point: review your trades daily and analyze the weekly chart regularly. Does your holding logic still hold? Has the trend changed? Adjust promptly—don’t get trapped by short-term fluctuations and emotions.

At its core, trading is a battle with yourself. Systematic thinking is always more valuable than luck.