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Honestly, I've been in the crypto world for nearly 8 years. Starting with just 30,000 yuan, my account now exceeds 30 million. Over the years, there's nothing mysterious—just strictly adhering to the iron discipline of maintaining 50% position size, with monthly returns generally stable at 70%. Today, I’ll break down this method for you.
**Position Management: The Core of Risk Diversification**
Divide your funds into 5 parts, only use one-fifth each time to enter the market. Set a stop-loss at 10 points; the maximum loss per trade is only 2% of total capital. It would take 5 consecutive losses to lose 10%. Conversely, set take-profit at over 10 points—do the math—you won't fear being trapped in a position in the long run.
**Trend Judgment: Going with the Trend is King**
In a declining market, every rebound is a trap for trap traders; in an upward market, every dip could be a golden opportunity. Instead of betting on the bottom, it's more reliable to buy low after the bottom is confirmed. It sounds simple, but few can do it.
**Coin Selection Logic: Avoid Hot-炒 Coins**
Don’t touch coins that surge short-term, whether they are mainstream or altcoins. After a rapid rise, continuing to go up is very difficult; high prices often lead to stagnation, followed by natural decline. Many still want to gamble, but the results are often disastrous.
**Technical Analysis: MACD Signals**
When DIF and DEA form a golden cross below the zero line and then break above zero, it’s a solid entry signal. When MACD forms a death cross above zero and moves downward, it’s time to consider reducing your position.
**Averaging Down Traps: Despair in Over-Adding**
The concept of averaging down has trapped many retail investors. The more you lose, the more you add; the more you add, the more you lose. This is the biggest taboo in trading. Remember: always add to winning positions, and only cut losses or wait when losing—never average down.
**Volume: The Soul of the Crypto Market**
Volume is the soul of price. Pay close attention to volume breakout at low consolidation levels; conversely, if volume stagnates at high levels, it’s time to exit decisively. Rising prices with insufficient volume should raise suspicion.
**Moving Averages System: Recognize the Uptrend**
Only trade coins in an uptrend; that gives the highest chance of success and saves time. A 3-day moving average turning up indicates short-term upward movement; a 30-day moving average turning up signals a medium-term trend; a 60-day turning up is a main upward wave; only when the 120-day turns up is it a long-term trend. Different cycles correspond to different strategies.
**Continuous Optimization: Review Every Trade**
Whether it’s coins like Solana or others, the key is to review every trade. Check if your position logic has changed, whether the weekly technical trend still matches your initial judgment, and if the trend has reversed. Adjust your strategy promptly to survive longer in a changing market.