Trading in the crypto space, stability and compound interest are the passports to long-term winners. Here are eight market-tested trading rules to share with everyone.

**Rule 1: Five-Position Strategy**
Divide your capital into 5 parts, investing only one-fifth each time. What are the benefits of this approach? If you misjudge the direction, with a stop loss within 10 points, the single loss is only about 2% of your total funds; even if you are wrong five times in a row, the total loss is only around 10%. Conversely, as long as your judgment is correct and you set a take profit space of over 10 points, the risk-to-reward ratio is completely tilted in your favor.

**Rule 2: Follow the Trend**
Most people want to catch the bottom, but in fact, buying the dip is more stable. Every rebound in a downtrend tempts traders to buy high, while every pullback in an uptrend is a golden opportunity—this is not a matter of luck but a fundamental market law.

**Rule 3: Avoid Rapidly Surging Coins**
Coins that surge rapidly in the short term, whether mainstream or small-cap, are unlikely to experience a second major wave. After a sharp rise, further increases become much harder, and high-level stagnation will inevitably trigger a pullback. This logic is simple, but some still gamble on it.

**Rule 4: MACD Trading Signal**
When the DIF and DEA lines form a golden cross below the zero line and break above zero, it’s a relatively safe entry signal. Conversely, when MACD forms a death cross above the zero line and moves downward, consider reducing your position or exiting.

**Rule 5: Never Add to a Losing Position**
The concept of averaging down has caused countless retail traders to lose money. The more you add when losing, the more you lose—this is a deadly cycle in trading. The correct approach is: stick to your stop loss when losing, and only add to your position when in profit.

**Rule 6: Volume as a Leading Indicator**
Trading volume in the crypto space best reflects market sentiment. A volume breakout at a low level warrants close attention, while a volume surge at a high level with stagnation should prompt decisive exit—these are key turning points in trading.

**Rule 7: Moving Averages to Determine Trends**
Only trading coins in an uptrend maximizes efficiency and win rate. The 3-day moving average turning upward indicates a short-term opportunity, the 30-day moving average turning upward signals a medium-term opportunity, the 84-day moving average turning upward marks the main upward wave, and the 120-day moving average turning upward is a long-term layout signal.

**Rule 8: Daily Review is Essential**
Consistent review helps identify issues. Check if your holding logic still holds, whether the weekly K-line trend matches your initial judgment, and if there’s a trend reversal—timely adjustments are key to staying ahead in changing markets.

Opportunities in trading are always present, but systematic execution is the only way to navigate through market fog.