After entering the digital currency market, it is crucial to master effective position management skills. The prudent investment strategies shared below can help investors achieve significant returns.

First, capital allocation is fundamental: divide the total capital into five equal parts and only use one-fifth for investment each time. Set a stop-loss point of 10%, so even if the judgment is wrong, the maximum loss in a single instance will be 2% of the total capital, and only five consecutive errors will result in a total capital loss of 10%. When the judgment is correct, a take-profit point of over 50% can be set.

The key to improving the win rate lies in grasping market trends. A rebound in a downtrend is often a trap to lure in buyers, while a pullback in an uptrend may present a good entry opportunity. Investors should understand that following the trend is easier to profit from than going against it.

Avoiding coins that experience rapid surges in the short term is also a wise move. This is because there are relatively few digital money that can consistently go through multiple waves of rising trends, and the difficulty of continuing to rise after a short-term spike is high. When prices stagnate at high levels and lack sufficient momentum, a decline is often the natural result.

In terms of technical indicators, MACD can be used as a reference for entry and exit: when the DIF line and DEA line form a golden cross below the zero axis and break through the zero axis, it can be regarded as a good buying signal; while when the MACD forms a death cross above the zero axis and moves downward, it may be considered to reduce the Position.

It is important to note that the averaging down strategy should be used with caution. Many investors fall into the vicious cycle of "the more they lose, the more they add, and the more they add, the more they lose," which is an extremely dangerous behavior in digital money trading. A wise approach is to increase the position when in profit, rather than adding more when in loss.

The change in trading volume is another important indicator. Attention should be paid when the coin price breaks out with increased volume after consolidating at a low level; however, if there is increased volume at a high level but the price remains stagnant, one should consider exiting in a timely manner.

Focusing on coins with an upward trend can improve the probability of success and save time. The strength of the trend can be assessed based on different moving averages: a rising 5-day moving average indicates a short-term increase, a rising 30-day moving average indicates a medium-term increase, a rising 84-day moving average signals a major upward wave, and a rising 120-day moving average indicates a long-term upward trend.

Finally, it is crucial to conduct a review analysis after each trade. Check if the logic behind holding coins is still valid, whether the weekly candlestick trends on the technical chart align with your expectations, and if the market direction has changed. Based on this, adjust your trading strategy in a timely manner.

By using these systematic methods, investors can build a more robust investment system in the highly volatile digital money market.