After years of active trading in cryptocurrencies, I realize that the key to consistent profits is not guessing market directions, but scientific fund management and disciplined execution. I want to share some trading principles validated through practice.

First is position control. Divide your funds into 5 parts, investing only 20% each time. This way, even if your judgment is wrong and you set a 10-point stop loss, the single loss is only 2% of your total capital. It would take 5 wrong guesses to lose 10% of your principal—this structural design gives you ample room for trial and error. Conversely, if your judgment is correct, setting a take profit above 10 points instantly reverses the risk-reward ratio.

Next is the power of following the trend. Rebounds during a downtrend are often false signals, while pullbacks during an uptrend are good entry points. Bottom fishing and buying dips may seem similar, but one is betting on a reversal, and the other is following the trend— the latter has a significantly higher success rate.

Regarding asset selection, be cautious of coins that surge in the short term. Whether mainstream or altcoins, rapid short-term rises followed by new highs are difficult to sustain. Stagnation at high levels already hints at weakness, making bottom fishing at this point akin to playing with fire.

From a technical perspective, MACD is a useful reference. When DIF and DEA form a golden cross below the zero line and break above zero, it’s a relatively stable entry signal. Conversely, when a death cross appears above zero, consider reducing your position.

Adding to positions is a common pitfall. Increasing positions when losing only deepens the trap— the correct approach is to add when in profit, not when in loss.

Volume cannot be ignored. Pay attention to volume breakthroughs at low levels, and be decisive in exiting when volume increases at high levels with stagnation. Volume and price behavior often reflect the market’s true intentions.

When screening assets, prioritize coins in an uptrend. Use moving averages to judge: a 3-day moving average turning upward indicates short-term bullishness; a 30-day moving average turning upward indicates medium-term growth; an 84-day moving average turning upward signals the start of a main upward wave; and a 120-day moving average turning upward confirms a long-term bull market. The angle changes of each line correspond to different levels of opportunity.

Finally, emphasize the importance of review. After each trade, examine whether your position logic still holds, whether the technicals on the weekly chart meet expectations, and if the trend has reversed. Trading strategies need to be continuously adjusted based on market feedback, not rigidly executed. The accumulation of these details ultimately determines long-term profitability.