After going through two market cycles, I grew my initial capital of 50,000 into over 3,000 coins—not by making all-in bets, but by using the simplest half-position strategy, which often yielded monthly returns of over 60%. I taught this method to my brother-in-law, and his assets doubled in just four months. Today, I’m sharing a few practical insights from experience—if you can take them to heart, you’ll save yourself at least a few years of tuition.

Divide your funds into five parts, only move one part at a time. Set a hard stop-loss at 10%, so each loss only costs you a maximum of 2% of your total funds. Lose five times in a row? That’s only a 10% loss. On the other hand, set your take-profit point at 10% or higher. Playing this way, how could you possibly get stuck holding the bag? Risk is always within your control.

Trading comes down to two words: follow trends. In a downtrend, every rebound is a bull trap; in an uptrend, every pullback is a buying opportunity. Do you think it’s easier to make money crossing the river by feeling for stones, or is it safer to wait for the water to recede before crossing? The answer is obvious.

Stay away from coins that have surged sharply in the short term. Whether it’s a mainstream coin or a small cap, very few can sustain continuous major rallies. The logic is simple: if too much strength is spent in the short term, there’s not enough left for the long run. If the price stalls at a high level and can’t go any higher, it will only go down next. Everyone understands this, yet there are always people betting they won’t be the last one holding the bag.

You need a reliable technical indicator; I often use MACD. When the DIF and DEA lines form a golden cross below the zero line and then move above it, that’s a relatively safe entry signal. If the MACD forms a death cross above the zero line and turns downward, it’s time to consider reducing your position.

The word “averaging down” has ruined many people. The more you lose, the more you add, digging your hole deeper and deeper—this is a deadly sin in crypto trading and is self-destructive. Remember the iron rule: never add to a losing position, only add to a winning one.

Volume-price coordination is key. After a coin consolidates at a low price and then breaks out with volume, keep a close eye on it; if there’s heavy volume at a high price but the price can’t rise, don’t hesitate—get out immediately.

Only trade coins with upward trends; it’s easier, less stressful, and your win rate is higher. For short-term, watch the 3-day moving average turning upward; for mid-term, the 30-day; for main rallies, the 84-day; and for long-term, the 120-day. If all these lines are pointing up, it means the train is still on the tracks.

Review every trade after it’s done. Does your original buying logic still hold? Does the weekly chart pattern still match your expectations? Has the overall trend changed? By reviewing in time, you can dynamically adjust your strategy.