Having traded in the crypto space for these years, I have seen too many people struggle and exit the market with losses. Actually, consistent profits are not that mysterious; the key lies in using the right methods. I will break down the trading strategies I have summarized over the years, hoping to inspire you.



**Fund Management Is the First Line of Defense**

Divide your capital into 5 parts, investing only 20% of it each time. What's the benefit of doing this? Suppose you set a 10-point stop loss; a single mistake would only lose at most 2% of your total funds. Five mistakes would only wipe out 10%. Conversely, setting take-profit at more than 10 points means the cost of mistakes is far lower than the gains when correct. This asymmetric risk-reward ratio is the foundation for long-term survival.

**Following the Trend Is Much Faster Than Going Against It**

In a declining market, every rebound hides risks; in an upward trend, every correction could be an opportunity. Many people enjoy the thrill of catching the bottom, but in reality, buying low in line with the trend is more stable. Simply put, don’t fight the market; following the trend is always the right move.

**Beware of Short-Term Rapidly Rising Coins**

Whether mainstream coins or small-cap tokens, the probability of continuing to rise sharply after a short-term surge is low. The logic is simple: after a short-term spike, the room and momentum for further gains are weakened. During the consolidation at high levels, the market naturally tends to decline due to lack of strength. But human nature often craves gambling, and many fail to see this clearly.

**Technical Indicators Aid Decision-Making**

MACD is a useful tool. When DIF and DEA form a golden cross below the zero line, and break below zero, it’s a relatively solid entry signal. Conversely, when MACD forms a death cross above zero and moves downward, it’s time to reduce positions.

**Averaging Down Is a Trap**

Many traders fall into the trap of averaging down. The more they lose, the more they buy; the more they buy, the more they lose, eventually pushing themselves into a corner. The correct approach is: only add to winning positions, never average down on losses. This principle sounds simple, but it tests one’s human nature.

**Volume Is the Soul of Price**

Seeing a volume breakout at low levels is a signal worth paying attention to. But if volume surges at high levels without further price increase, it’s time to exit decisively. Changes in volume often reflect shifts in market sentiment ahead of price movements.

**Use Moving Averages to Catch the Rhythm**

Focus only on coins in an uptrend; this maximizes your win rate and saves effort. A short-term upward trend is indicated when the 3-day moving average turns up; a medium-term trend is confirmed when the 30-day moving average rises; the start of a major upward wave is when the 84-day moving average turns up; a strong long-term trend is indicated when the 120-day moving average is rising. Different moving average combinations help you see trends at various levels.

**Review and Reflection Are the Steps to Progress**

Always review each trade afterward. Check whether your holding logic still holds, whether the technical analysis met expectations, and if the trend has shifted. Adjust your strategy promptly based on the review results. This is the way to continuously optimize your trading system.

The market is there, the opportunities are there, and ultimately, it depends on how you seize them.
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