After years of battling through the trading markets, I’ve developed a steady strategy using a 50% position approach. To be honest, this method has helped me avoid a lot of pitfalls and allowed my account to gradually grow. Today, I’ve organized a few key insights that I hope will be useful to everyone.

First, let’s talk about capital management. I’m used to splitting my principal into five parts, and at most, I’ll only use one part at a time. I set a 10% stop-loss line, so even if I misjudge the direction, a single loss is limited to 2% of my total funds. Only after five consecutive losses would I lose 10%, but as long as I get it right once, a take-profit space of over 10% can make up for previous losses. Operating like this keeps my mindset much steadier.

As for entry timing, I stick to one principle—go with the trend. Rebounds in a downtrend are usually bull traps; pullbacks in an uptrend are the real golden opportunities. Buying at a low is always safer than chasing highs or bottom-fishing. This seems simple, but in the real market, not many people can resist acting impulsively.

Here’s another hard-learned lesson: stay away from coins that skyrocket in the short term, whether they’re mainstream or small-cap. Very few assets can sustain continuous surges; after a sharp short-term rally, momentum often fades, and after consolidating at high levels, they start to reverse. Many people know this but still want to take a gamble, only to end up stuck at the top.

For technical indicators, I often use MACD to assist my decisions. When the DIF and DEA lines form a golden cross below the zero axis and break above it, that’s a relatively reliable entry signal. Conversely, if the MACD forms a death cross above the zero axis and heads downward, it’s time to consider reducing positions.

I especially want to talk about “averaging down.” I don’t know who invented this term, but it’s caused a lot of harm. Many retail investors keep averaging down as they lose, only to end up trapped. My principle is: never average down on a loss—only add to winning positions. This iron rule has saved me several times.

Volume is a key indicator. Pay close attention to breakouts on high volume at low levels—this is often a signal of a trend starting. But if you see high volume stalling at high prices, it’s time to exit decisively—don’t expect a second rally.

When selecting assets, only choose those in an uptrend. The 3-day moving average trending up signals a short-term opportunity; the 30-day uptrend is suitable for swing trades; the 84-day uptrend could mean a main rally; and the 120-day uptrend is for long-term positions. Filtering this way increases your win rate and saves time staring at the screen.

Last but not least, always review your trades. Check the weekly K-line once a week, see if your holding rationale has changed, whether the trend is still intact, and adjust your strategy in time. The market changes fast—stubbornly sticking to one method will get you hurt sooner or later.

All these are practical lessons learned over time—not some deep theory, just about controlling risk, following trends, and executing strictly.