I've been in this market for 8 years, growing my principal from 10,000 to over 50 million. It's not luck—it's all about sticking to the iron rule of never exceeding 50% position size, which has allowed me to earn an average monthly return of 70%. Today, I'm sharing the pitfalls I've encountered and the lessons I've learned over the years.
**First, divide your funds into five parts, only use one part at a time.** Set your stop loss firmly at 10%. At most, you'll lose 2% of your total funds per trade. Even if you get it wrong five times in a row, you only lose 10%. But if you get it right once and set your take profit above 10%, no matter how you do the math, you won't lose. Are you still afraid of getting trapped?
**Second, increasing your win rate comes down to two words: follow trends.** Every rebound in a downtrend is a bull trap; every pullback in an uptrend is a golden buying opportunity. Think about it—is it easier to make money by going against the trend and buying the dip, or by following the trend and buying on pullbacks? The answer is obvious.
**Third, stay away from coins that have surged in the short term.** Whether they're major or altcoins, very few can sustain multiple consecutive major uptrends. The logic is simple: after a short-term surge, it's hard to keep rising. If the price stalls at a high level, it will inevitably drop. Yet there are always people who want to bet on that small probability event.
**Fourth, use MACD to determine entry and exit points.** When the DIF and DEA lines form a golden cross below the zero line and then break above it, that's a solid entry signal. If the MACD forms a death cross above the zero line and moves downward, it's time to reduce your position.
**Fifth, never average down on a losing position.** I don't know who came up with the term "averaging down," but it's ruined countless retail investors. The more you lose, the more you buy, and the more you buy, the more you lose. This is a deadly mistake in crypto trading—you're just pushing yourself toward ruin. Remember: only add to your position when you’re in profit, never when you’re at a loss.
**Sixth, trading volume is the soul indicator.** Pay attention when you see a breakout on high volume after a period of consolidation at the bottom. But if there's heavy volume with price stalling at the top, you must exit decisively. Price and volume must align—this is an iron rule.
**Seventh, only trade coins in an uptrend.** This gives you the highest odds of success and saves time. A 3-day moving average turning upward signals a short-term opportunity; a 30-day moving average turning up is a mid-term signal; an 84-day moving average turning up means the main uptrend is here; a 120-day moving average turning up signals a long-term trend. Understand the moving averages and catch the trend.
**Eighth, never skip daily reviews.** Check if your reasoning for holding a coin has changed, whether the weekly chart matches your prediction, and whether the trend has shifted. Adjust your strategy in time if you want to survive in the market.
Maybe you used to grope around in the dark alone, but now these experiences are laid out for you. Whether you can put them to use is up to you.
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I've been in this market for 8 years, growing my principal from 10,000 to over 50 million. It's not luck—it's all about sticking to the iron rule of never exceeding 50% position size, which has allowed me to earn an average monthly return of 70%. Today, I'm sharing the pitfalls I've encountered and the lessons I've learned over the years.
**First, divide your funds into five parts, only use one part at a time.**
Set your stop loss firmly at 10%. At most, you'll lose 2% of your total funds per trade. Even if you get it wrong five times in a row, you only lose 10%. But if you get it right once and set your take profit above 10%, no matter how you do the math, you won't lose. Are you still afraid of getting trapped?
**Second, increasing your win rate comes down to two words: follow trends.**
Every rebound in a downtrend is a bull trap; every pullback in an uptrend is a golden buying opportunity. Think about it—is it easier to make money by going against the trend and buying the dip, or by following the trend and buying on pullbacks? The answer is obvious.
**Third, stay away from coins that have surged in the short term.**
Whether they're major or altcoins, very few can sustain multiple consecutive major uptrends. The logic is simple: after a short-term surge, it's hard to keep rising. If the price stalls at a high level, it will inevitably drop. Yet there are always people who want to bet on that small probability event.
**Fourth, use MACD to determine entry and exit points.**
When the DIF and DEA lines form a golden cross below the zero line and then break above it, that's a solid entry signal. If the MACD forms a death cross above the zero line and moves downward, it's time to reduce your position.
**Fifth, never average down on a losing position.**
I don't know who came up with the term "averaging down," but it's ruined countless retail investors. The more you lose, the more you buy, and the more you buy, the more you lose. This is a deadly mistake in crypto trading—you're just pushing yourself toward ruin. Remember: only add to your position when you’re in profit, never when you’re at a loss.
**Sixth, trading volume is the soul indicator.**
Pay attention when you see a breakout on high volume after a period of consolidation at the bottom. But if there's heavy volume with price stalling at the top, you must exit decisively. Price and volume must align—this is an iron rule.
**Seventh, only trade coins in an uptrend.**
This gives you the highest odds of success and saves time. A 3-day moving average turning upward signals a short-term opportunity; a 30-day moving average turning up is a mid-term signal; an 84-day moving average turning up means the main uptrend is here; a 120-day moving average turning up signals a long-term trend. Understand the moving averages and catch the trend.
**Eighth, never skip daily reviews.**
Check if your reasoning for holding a coin has changed, whether the weekly chart matches your prediction, and whether the trend has shifted. Adjust your strategy in time if you want to survive in the market.
Maybe you used to grope around in the dark alone, but now these experiences are laid out for you. Whether you can put them to use is up to you.