Seven years, from a capital of 50,000 to over 50 million, how was it achieved? Honestly, it’s all about a stable trading system and strict risk management. This seasoned trader recently summarized his methodology, and his apprentice doubled their capital in just three months. Today, I want to share with you the underlying logic of these trading principles.

**First: Position Size is the Key to Life and Death**
Divide your funds into five parts, and only trade one part at a time. What’s the cleverness of this design? It’s simple—one mistake only loses 2% of total capital; five mistakes, and you lose 10%. Coupled with a 10-point stop-loss and a 10-point take-profit, under this ratio, do you think it’s easy to get trapped?

**Second: Going with the Trend is the Winner**
A decline followed by a rebound is often a trap, and an upward correction is a golden opportunity. These words sound cliché, but few can truly execute them. The question is—Is it easier to make money by bottom-fishing or by low-buying? The answer is obvious.

**Third: Stay Away from Coins with Explosive Rises**
Coins that surge rapidly in the short term, whether mainstream or altcoins, are unlikely to continue rising. The reason is simple: after a rapid surge, the momentum often falters. Once a high-level stagnation forms, a decline becomes inevitable. But some still want to gamble—this is the difference between retail investors and professional traders.

**Fourth: MACD Signals**
A golden cross of DIF and DEA below the zero line and breaking through zero? That’s a fairly reliable entry signal. Conversely, if MACD forms a death cross above the zero line and moves downward, it’s time to consider reducing positions.

**Fifth: The Most Forbidden Operation**
The word “averaging down” has harmed many. Losing more and then adding more, only to lose even more, pushing oneself into a dead end. Remember this—always add to winning positions, never add to losing ones.

**Sixth: Volume is the Soul**
In crypto markets, volume is often a leading indicator. A breakout with increased volume at a consolidation low is a key signal; a volume surge at a high level with stagnation suggests it’s time to exit decisively.

**Seventh: Trend Grading Operation**
Only trade coins in an uptrend for the highest win rate. A 3-day moving average turning upward indicates a short-term opportunity; a 30-day moving average turning upward signals a medium-term setup; an 84-day moving average turning upward is a main upward wave; and a 120-day moving average turning upward indicates a large-scale trend. Combining signals across different cycles greatly improves success rates.

**Eighth: Review is Fundamental**
Every trade must be reviewed. Has the logic for holding the coin changed? Does the weekly K-line still support your judgment? Has the trend shifted? Adjusting in time allows you to maintain an advantage in a changing market.

The core of this methodology boils down to six words: Control risk, follow the trend. It sounds simple, but executing it requires discipline and patience.